Buying an “as-is” home doesn’t mean you give up your right to disclosures. State and federal regulations dictate what the seller has to tell you about known issues within the home. Each state has its own disclosure laws on what a seller has to tell the buyer about known problems. Some state disclosure regulations include water damage, mold infestations, termites and even whether someone died on the property. If a seller doesn't disclose a known problem that’s within your state’s list of required disclosures, you may be able to sue for damages or repair costs.You’re Still Entitled To The Required Disclosures
The only current federal disclosure statute is for lead paint. If you’re buying a home built before 1978, the seller needs to tell you if the home has ever had lead paint.
You may be able to use disclosure laws to your advantage as a buyer. As soon as a seller knows about an issue in the home, they have to tell every future buyer about it.
For example, let’s say you live in a state that requires sellers to disclose mold damage. Your home inspection finds mold that the seller didn’t know was there. Alerting the seller to the mold might make them more willing to negotiate with you; after all, they’ll have to disclose the mold to other buyers if you back out of the sale.
A Great Real Estate Agent Is An Asset For ‘As-Is’ Sales
A licensed real estate agent can be an invaluable asset when you want to buy an “as-is” home. Real estate agents are local experts who understand disclosure laws and the home buying process. Experienced real estate agents can explain in more detail exactly what buying an “as-is” home means for you. This can give you more confidence when you decide to close.
They can also recommend when not to buy. Some homes may need extreme repairs, which would cancel out any savings you’d get by buying the home. Experts say you should put away 10 – 25% of your budget for repairs when you buy an “as-is” home. However, an agent can help you come up with an accurate budget for your situation.
Home Warranties Can Offer More Protection
If you buy an “as-is” home that doesn’t need a complete overhaul, you can protect the working appliances in the home with a home warranty policy. Home warranty policies cover your home’s appliances and systems.
While the warranty probably won’t cover appliances or systems that are already damaged, they can help you cover the cost if something else goes wrong. Home warranty policies can be a smart idea for homeowners who buy “as-is” homes, especially if the home is older.
Here are some of the best home warranty companies to consider during your search.
