Buying a Knoxville Home in “As Is” Condition
With so many short sales and foreclosed homes for sale in Knoxville, there are many great real estate deals in the Knoxville market. One stipulation that comes with buying a home at such a cheap price is the condition that you are buying it “as is.”
What does “as is” mean? Buying a home “as is” means that you are purchasing that home in its current condition. There are no warranties given, it is sold in its current condition without any guarantees.
Should you be worried about buying a home “as is”? Not necessarily. The “as is” condition does not necessarily mean there is anything wrong with the properly. It just means the buyer should not expect repairs to be made. However, all buyers should have a trained home inspector examine the property so they have a better idea of what they are getting into.
Am I losing all my rights by buying a home “as is”? Absolutely not. The contract is subject to an inspection period. If something is found during the inspection which the buyer doesn’t like, they have the right to back out of the contract and still get their earnest money back.
What is the difference between a buying a short sale versus buying a foreclosure in Knoxville? A short sale is a house that worth less than the mortgage, and the seller’s lender accepts less than what is owed on the mortgage. A majority of the time with a short sale, the seller is behind on their mortgage and most likely is not maintaining their home because they don’t have the money to do so.
A foreclosure is a bank owned property that has already been foreclosed upon by the lender. With a short sale repairs can’t be made because the seller cannot afford to and with a foreclosure they may be able to be negotiated into the contract and the bank may or may not agree to them.
What should you know about buying a house “as is”? You should make sure you know you rights and the contract very well. Make sure you know at what point you can back out of the contract if there is some kind of issue. You should also make sure you know the defects of the property and how much it will cost to fix them once you move in. By knowing these things, you will be able to make a more informed decision.
There are not shortage of great real estate deals in the current Knoxville market. If you have questions about buying a short sale or foreclosure in Knoxville, please do not hesitate to contact my by phone at 865-696-9002, shoot me an email, or leave a comment on this post.