Buying a house as-is means the seller will not fix anything. Most of the time, homes sold as-is have many things wrong with them. And because of that fact, they are cheaper than similar homes than do not need any work.
This might mean something as small as a wall needs to be rebuilt, or the house might need a new roof. But it could also mean that they house has a cracked foundation or is infested with mold.
Buying a house as-is is a great way to get a house at much lower then retail price. But make sure that you are capable of making the repairs.
You can use this idea in any house you want to buy. By finding things in the house that need to be fixed, you can offer to fix them yourself if the seller reduces the price of the house enough for you to get the items done.
Sellers usually will agree to avoid the hassle of hiring people to fix things, and to get the house sold quickly.
Sweat equity is the term referred to the amount the house goes up in value because you fixed it up yourself. Several handy man specials are available in every neighborhood, that anyone willing to, could buy cheap, fix up and raise the value of the property by thousands.
This is the way several contractors buy their own houses. Or even if you are handy with your hands. Find a house that needs repairs but is still livable. But it cheaper then normal, and move it. While you live there, you can start improving it. You save on the labor and on the price of the house.
When you are done, the house should have appreciated in value and you can sell for a very nice profit and do the whole thing over again.
Or if you want to stay in the house, you get the satisfaction of having the house fixed the way you want it. It does not make sense to pay full price for a house, and then knock out a wall to make a room bigger. With an as-is house, you can make whatever changes you want and know that you did not have to pay for them.
Even if the house is not a total mess, all houses have some items that are broken. Make sure to point out each and every item to the seller and ask him to either fix it or lower the price enough so you can fix it. This tactic alone will save you several hundred dollars.
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