‘As-is’ homes for sale in Columbia Maryland: Things to know before buying one
A lot of homes for sale in Columbia Maryland are being listed ‘as-is’ these days. Most buyers are wary of investing in ‘as-is’ homes because they immediately assume that these properties would be in poor condition, without even visiting them. While it makes sense to be cautious when buying a home, you may let a great deal slip away if you don’t check out ‘as-is’ listings, particularly if they are in your target neighborhood. Not all ‘a-is’ homes are necessarily bad deals.
Here are a few things you should know before buying any of the ‘as-is’ homes for sale in Columbia Maryland or anywhere else for that matter:
What is buying a home ‘as-is’?
Let’s first understand what buying an ‘as-is’ home actually means. When you buy a home ‘as-is’, you can’t ask the seller to make repairs or renovations. The seller doesn’t make any guarantees with regard to the property’s condition. This is put in the purchase contract, so the buyer gets the home without any warranty.
Many of the homes sold ‘as-is’ are foreclosure or estate sales. The seller won’t have to disclosure material defects with the property as the per Maryland Seller Disclosure laws. However, the seller would complete a form—known as the Residential Property Disclosure and Disclaimer Statement. Instead of disclosing problems with the property, the seller would simply give a disclaimer as to the condition of the house, stating that the home was being sold ‘as-is’. The onus of discovering any defects will be on you.
Why to consider buying a home ‘as-is’?
One of biggest hassles when someone sells a home is to make repairs and renovations. Distressed homeowners who are going through a difficult financial situation particularly want to avoid making repairs. It further burns a hole in their pocket.
The same is true for inherited estates. Sellers may want to avoid disclosing defects simply because he or she is not aware of them. If the seller has not lived in the estate, he or she would try to avoid legal liabilities of making disclosures.
Sellers who are in a hurry to sell due to certain circumstances such as divorce or job change may also prefer to list ‘as-is’.
These are all legitimate reasons for a person to sell without making any repairs. It is true that many of these properties may have serious issues with regard to their condition, but it’s not the case always. The property might be in good condition, but the seller may simply not have the time and money to make even minor repairs. Take the below-mentioned steps to make sure you are making the right decision when buying ‘as-is’:
- You should never skip a home inspection to evaluate the property’s condition. Hire a licensed home inspector. You can even ask a contractor to take a look at the property and give you an estimate of the likely repair costs. You can skip a home inspection only if you want to tear down the property completely and build new construction.
- Negotiate with the seller on the asking price depending on your estimated cost of repairs. Account for your time and sweat equity also during negotiations. The simple fact that the property is being sold ‘as-is’ can give you an edge on the negotiation table.
- Make sure that you have a team, a contractor and skilled workers to fix the property. It’s always better to find a contractor and discuss the repair project before you even sign the purchase agreement with the seller. The bids that contractors will submit will also give you a good idea of the estimated repair costs.