If you do choose to pursue the ‘as-is’ home, there are some things in particular that you should watch out for. While many things are a fairly simple and inexpensive fix, there are some problems that will drain your wallet and frustrate you as you attempt to fix them. While an inspection may not be possible, you can still take a look around and make an attempt to identify what might be your biggest problems.
Electrical Sockets
Modern houses that are built to code generally have one electrical socket for every six feet of wall space, though this number varies a little between jurisdictions. Older homes may have fewer outlets, so you might have to invest some time and money remedying this.
Adding electrical sockets is usually considered to be a quick and easy fix. However, you should really count the number of outlets in the home. If there are very few outlets indeed, the problem may be bigger than simply a builder who didn’t put in enough sockets. The house may be wired with a system that truly can’t handle any more outlets. This may mean a total rewire, and that won’t come cheap.
Floors
It’s easy to just never look down when taking a look at a property. However, when buying a house ‘as-is,’ you owe it to yourself to look at every possible problem. This means looking at what’s right beneath your feet. Floors that are not level or that sag in the middle might indicate that the builder of the home took a few shortcuts. Perhaps the contractor set the floor joists at twenty inches instead of the standard sixteen. There are other possible reasons for the sagging floor as well, none of them easy to fix.
If the floors do sag, feel spongy, or is at all unstable, consider walking away from the house entirely. It will probably be a very expensive fix, but since you cannot have an inspector take a look at the problem for you, you have no idea how much it will really cost you.
Roof
Replacing a roof is very expensive and if you suspect a problem with the roof you should probably consider a different property. Look for loose or missing shingles, an excess of moss, or any areas of discoloration. Also keep your eyes open for any sagging spots on the roof. These can indicate structural problems that you probably don’t need to be dealing with.
If it’s winter, check the eaves for a build-up of icicles. Heavy ice usually indicates poor insulation, at least near the roofline. This ice build-up can cost you money, not only in heating bills, but in repairing the damage done to the roof by the ice dam.
Taxes
In most jurisdictions, property taxes are a matter of public record. You can easily assess just how much the property taxes will be, and maybe you can even estimate what they might be once you begin repairing whatever it is that needs to be repaired. Keep in mind that this will only be a guess, since you’re really not going to know what the repairs are until you actually buy the house.
Utilities
Knowing how much the utilities cost for the property you’re interested in can be a great way to evaluate how much energy the house consumes. However, the homeowners, having chosen to list their house ‘as-is’ and not allow inspections, are probably not going to give you the utility bills for the past year. In some jurisdictions, there might be a way around this.
Record the asset number on the meter and contact the utility provider. If your jurisdiction allows it, you may be able to request the usage for up to the past two years. This will allow you do get an idea of how much you will have to pay to heat the home at various points in the year. You might also be able to decide whether or not you’ll have to invest in insulating your new home. Insulating can be very expensive.
You can usually purchase an ‘as-is’ property for relatively cheap. However, the costs associated with bringing this home up to code are undisclosed. You might find yourself having to invest thousands in your new property. This will elevate your costs, possibly to the point where the house just isn’t worth it. Evaluate the home carefully and decide if you’re really willing to take that risk. If possible, negotiate a home inspection and contractually detail the home’s current condition, allowing yourself room to back out of the deal, if need be.
