When, for whatever reason, sellers are unable to make repairs or renovations on a property before putting it up for sale, they often designate it “as-is.” Perhaps they are in a rush to sell the home as quickly as possible. Perhaps they are ill or elderly and do not have the energy to organize repairs before moving into an assisted care facility. Or perhaps they are in a difficult financial situation and need to liquidate their assets. No matter the reason a home is being sold “as-is,” this kind of buying experience is different from the regular home buying process – in good ways and bad ways. Read on to learn about the pros and cons.
Pros of Buying an “As-Is” Home
You will get a better price: Buying an “as-is” home is an excellent way to get a deal. Some experts say you can expect to pay about 60% to 70% of the full price. This range can vary depending on the extent of the repairs that the house needs.
You will have less competition: The bidding on as-is homes is much less competitive because fewer people are willing to buy homes that are in need of significant repairs.
Cons of Buying an “As-Is” Home
You will have to pay for repairs yourself: It’s important to take into consideration how much the necessary repairs are going to cost you after you have purchased the home. Will you have the money to make the repairs right away? If not, you might have to live in uncomfortable or unsafe conditions until you have the funds.
It might be a money pit: While an “as-is” home could be a great investment, there’s also the possibility that it will become a drain on your resources to keep it habitable. As with any real estate sale, sellers of “as-is” homes are still required to disclose any known defects to the buyer; nevertheless we recommend working with a professional inspector to avoid the unexpected.
Who can help me with real estate transactions in Chicago?
Anytime you are buying or selling property, it is important to have an experienced real estate attorney by your side to offer guidance. The team at Auricchio Law Office is ready to help you. We can help you by reviewing contracts, negotiating terms, identifying hidden liabilities, reviewing title, mortgage, and tax documents, registering your legal documents, and so much more. We offer free consultations for new clients, so there’s no reason not to contact us today. Give us a call at (312) 263-0010.
Auricchio Law Offices
Latest posts by Auricchio Law Offices (see all)
- Chicago’s Commercial Real Estate & An 89% Loss - April 15, 2024
