Here are a few points to consider if buying an “As Is” Property in Arizona:
- A property being sold “As Is,” does not mean an owner is released from the legal obligation to disclose known material latent defects. But, many properties being sold “As Is” are bank or corporate owned and these owners have never lived in the property and therefore have limited knowledge of the home or its history.
- You are still allowed to conduct any inspections you would like on the home. Conduct inspections within the time frame outlined in the purchase contract. The seller is not obligated to correct defects discovered by the buyer during inspections. If you discover defects during an inspection, you may choose to cancel the contract and you should get your earnest money back if the cancellation is made in writing and in accordance with the inspection period requirements of the contract.
- Sometimes utilities are not turned on at the property and you may have to connect them at your own expense in order to conduct inspections.
- In addition to turning the water on for the inspection, you may have to fill a drained pool.
- Consider asking for a longer inspection period so you have time to get estimates for repairs/improvements. While “As Is” properties are often priced below market, if defects discovered are extensive, the amount invested to make the property habitable, or just to your liking, could end up totaling more than the home's fair market value.
When it comes to buying a home being sold “As Is,” it is essential to get professional guidance starting with a knowledgeable REALTOR®. Agents help you understand the contract, addendums, and disclosures. They guide you through every step of a purchase through closing and can help you find the resources you need for the services they don't provide such as title companies, home inspectors, attorneys, lenders and so on.
Every property and situation is unique. If you are interested in a bank-owned home or have additional questions about the process, give us a call at (623) 362-3074 or email us at info@valleyrealestatepros.com.
