Potential and pitfalls of buying homes 'as is'
This Shoreham home is a waterfront property with an "as is" listing price of $799,000. Credit: /Kirsten Luce
When Laura McKinney first saw the Hampton Bays home her husband was considering buying, she was leery. After all, the property had been advertised "as is," meaning it had to be purchased with all its flaws, which could be anything from termite damage to a neglected basement straight from a horror movie.
Sure enough, she did find something truly frightening.
It was an ancient bathroom. With a blue tub. And (shriek!) a blue vanity.
"That was probably the scariest thing for me," she says.
PHOTOS: A look at some "as is" homes.
Finding the words "as is" in the description of a dwelling can be disquieting for someone searching the real estate market. Stories abound of unwary purchasers being stuck with a home with a crumbling roof or a moldy basement. But the phrase doesn't always imply a sinister discovery and may even reflect a situation that can be turned into an advantage.
"A flexible buyer can get a bargain," says Barbara Tomko of Shawn Elliott Luxury Homes & Estates. "Some investors actually look for this kind of thing."
There are many innocuous reasons a home is sold "as is," she says. Examples include an estate bequeathed to children who live elsewhere and want a no-hassles sale. Or, an owner who knows his home has a leaky roof and reduces the price to compensate for post-sale repairs. Or, a bank that wants to get a property off its books with a short sale, a situation where the owner owes more than the property is worth.
The century-old Shoreham home being sold by Linda Stowell with Coach Realtors in Port Jefferson, for instance, has sweeping views of the Long Island Sound, but its interior has been vandalized. A little handyman TLC could easily boost the home's value into a seven-figure category, she says.
"It's a phenomenal location," she adds.
Tomko's advice for those considering an "as is" home is to have the property thoroughly inspected and be prepared for repairs. Then, instead of a horror tale, you might have a happy ending.
Two months after buying their home, Laura McKinney has a renovated bathroom and a much better attitude. Her advice to those considering an "as is" home?
"Don't be afraid," she says.
WHAT 'AS IS' MEANS
AS IS A sale with no guarantee as to the home's condition. The seller will repair or improve nothing, which means you can get a terrific deal or a terrific headache.
YES, BUT You can reduce this risk with a home inspection. Most inspections on Long Island run around $500, although costs can rise with the home size and whether a termite inspection is included.
AND, FINALLY A buyer can contractually detail the home's as is condition to protect against a catastrophe between the time of signing the contract and the time of closing. In other words, if the described leaky roof has caused more damage in that interim, that's OK since it's expected wear and tear. If the roof has fallen in, that's not, and the buyer can back out.
