Watch Out for these Red Flags When Buying a Home “As Is”
While house hunting, you might have seen some listings of homes sold “as is.” Home buyers might find these types of homes attractive because they’re typically priced lower than similar houses. Before you purchase an “as is” home, you must be able to decipher if the home is sketchy or not.
Here’s what to watch for if you plan to purchase a home as is.
Potential Foundation Problems
Correcting foundation problems is one of the most expensive repairs you can do to your property. The foundation of a house is one of the most, if not the most important, part of a house. Purchasing a home with a faulty foundation can cause you thousands of dollars to fix the problem.
All poured concrete foundations will crack sooner or later, but hairline cracks are not signs of foundation problems. However, contact a foundation contractor to examine the area if a crack is wider than half an inch.
This also applies to cracks that were freshly patched. Huge cracks could also be an indication of an unstable foundation.
Mold infestation should be one of the things you should watch out for when purchasing an “as is” home.
Molds in houses can cause significant health problems, especially for little kids. If you smell mold, check around windows, under sinks, and in basements for leaks.
If the leak has been going on for ages, construction materials, such as wood members, carpets, etc., may have to be replaced.
External Roof Damage
Major roof repairs can cost around $1,500 to $7,000. Therefore, you must examine the roof before purchasing an as-is home.
A sagging ceiling typically indicates that the external roof cannot prevent precipitation. Even though ceiling repairs are less costly than roof repairs, it usually means that the external roof needs further repairs, which will multiply the cost.
Where to go from here...
Sellers list their houses for sale “as is” when they don’t want to repair their property before closing. “As is,” homes may look like a bargain, but remember that most of them have hidden issues that can cost you thousands of dollars for home repairs, which is why it’s important to watch for the red flags above.
If you’re ready to become a homeowner, contact our mortgage experts to help you start your homeownership journey.
* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.