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Summary: You may have come across listings that specify that the home will be sold in “as-is” condition. But what does this mean? And should you consider buying a home like this? This article will discuss the pros and cons of buying a home that the seller will not take responsibility for fixing before is transferred hands.
Buying a fixer-upper in Washington can provide you with benefits that include adding in instant equity. By snagging a home that needs a little TLC at a bargain price, you can effectively fix it up yourself and increase the value of the property, bringing you quick financial rewards by doing so. But, there are also some precautions that buyers need to take when buying a home that is advertised “as-is” condition.
When considering buying a home in an “as-is” condition, the buyer takes all the risk of anything needed to bring the property back up to current building codes and make it ready for occupation or re-sale. There can be bargains in as-is properties if you know how to hunt for one.
To find these properties, look for those that sell at auction for tax liens or other reasons for governmental asset-seizure. The might be distressed as-is properties in WA that are foreclosures, short-sales, or estate sales.
A popular home-flipping strategy is to buy an as-is property at a price that is far below market value, make the repairs necessary, and then resell the home for a price that covers the repair costs plus makes a profit. Many people may do this with the intent of selling very quickly to minimize their carrying costs, while others adopt the “buy and hold” approach and allow time to appreciate the value of the home while they collect rent checks.
Regardless of the approach you take, fixing up a home after buying it as a discount is a viable way to make a profit in real estate.
It is a guessing game when buying an as-is property in Washington State. There may be very unpleasant surprises for repairs that are very costly and are not obvious. Hidden problems include major plumbing troubles, severe electrical system repairs, shifting or broken foundations, dry rot, and termite infestations.
It is possible to get a bargain when buying an as-is property; however, it is not a certainty. If you are just starting with flipping houses, it is better to partner with professionals to get helpful guidance. Work with a qualified real estate agent who specializes in distressed properties and partner with a reputable building contractor to increase the chance of success.
If you are in the market for a new home in Washington or interested in refinancing your current property, be sure to contact your trusted home mortgage professional to discuss financing options.
Sammamish Mortgage is a family-owned and operated Mortgage Company who has been proudly serving the Pacific Northwest since 1992. We currently lend in all of Washington, Oregon, Idaho, and Colorado. With their wide offerings in mortgage programs and flexible qualification criteria. Get in touch with Sammamish Mortgage today!
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There are several things to keep in mind when purchasing a unique home, including the cost of upkeep and repairs.