Buyers, when touring homes with your Realtor, keep in mind that when making an offer on an "as is" home, that is exactly what it is, an "as is" home. It seems that sometimes buyers believe the "as is" home is the same as the other homes on the market and feel that the seller should make requested repairs. For example, if the roof shows some wear and tear but otherwise is in serviceable condition, some want a total roof replacement paid for by the seller. For the buyer that is limited financially, it is their argument that they are on a limited budget, therefore they can only afford the new mortgage they are going to assume and can not afford to finance a total roof replacement.
It is important to remember that as a homeowner, you are going to have to make repairs to your home and property throughout the years and, yes, if you are going to stay in your home for any length of time, you may possibly even have to replace the roof in the future. Roofs do not last forever and should a buyer feel they cannot take care of the upkeep of a home and property, maybe they're not ready to become a homeowner.
There is an array of items that, as a buyer, you will need to purchase to take care of your home, especially if you are a new homeowner. If you're on a limited budget, you should consider carefully if you are prepared to invest in all the things you need to keep the home and property in good condition. Just to name a few, think of all the landscaping tools and equipment you will need to purchase, if you do not already own them, to keep the property in good condition. Especially if there is a homeowner's association, you will have to take care of weeds and keep grass and bushes trimmed up nicely.
Indoors as well. For example, appliances do not last forever. In an "as is" home, the appliances are usually a what-you-see-is-what-you-get kind of deal -- if you get appliances at all! You may purchase a warranty for these items but again, that is another payment in addition to a mortgage payment and utilities. In other instances, the appliances are covered under warranty for the first year. Either way, it is important to consider if finances would be available to purchase a new appliance should it be needed in the future.
Don't get me wrong. Purchasing an "as is" home can be quite an investment opportunity if you have the ability and desire to do the repairs yourself or hire a licensed contractor. I recently sold a home to a buyer who paid an initial out-of-pocket expense of $4,000 and turned right around and had $40,000 in equity in their new home! This is a nice sum to do a little major remodeling if desired!
An "as is" home is what it is. Buyers, carefully consider before making an offer if you are able to do the repairs yourself, whether you do them or hire a professional, and if you are able to make an investment in the home's future beyond that of the mortgage payment and utility payments.
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