Buying a parcel as-is is often a cost-effective way to become a home or property owner. If you go this route, you accept the property in its current condition without asking the seller to make repairs or concessions.
Still, purchasing an as-is property may leave you with an uninhabitable structure or one that needs extensive repairs. Even worse, you may end up with property you do not actually own. Here are three tips for making a successful as-is property purchase.
1. Understand the restriction
If you are considering buying an as-is property, you must understand the restriction. Does it apply to the entire property or only specific parts of it? If you have interest in a limited as-is property, you may be able to convince the seller to make repairs on aspects of the property that fall outside the restriction.
2. Include a cancellation provision
Even though as-is properties do not usually allow you to request repairs, modifications or concessions, you typically may arrange an inspection. Having a qualified home inspector look over the property makes good sense.
If the inspector finds a deal-breaking problem, you want to have a cancellation provision in your purchase agreement. This provision allows you to walk away from the deal.
3. Perform a title search
An as-is property may have title problems. Accordingly, as with the purchase of any real property, you should perform a title search. Then, you should examine the deed and all land records for any potential hang-ups, including certain types of easements.
Working with a transactional real estate attorney may help you identify title issues and other problems. Remember, what you do before closing may be the difference between a good investment and a bad one.
