For individuals looking to buy a home, whether for a private residence or as an investment property, the struggle the housing market was recently faced with may actually seem like a good thing. While many people lost their homes to foreclosure or were forced into a short sale situation, buyers with cash in hand can swoop in and snatch up a house for a great price. However, while most people that pick up property on a short sale feel good about their purchase, some buyers may feel like they are being taken advantage of.
Short sale homes are usually sold 'as-is' which means buyers interested in purchasing the property cannot ask for the sellers to repair defects or provide funds to do so. While the term 'as-is' takes the repair/credit factor out of the sale equation, it does not erase the seller's obligation to disclose the properties' actual condition. Sellers usually list a home as-is if there are problems or defects too major or expensive to repair, and if the condition report doesn't show any major problem, buyers may question why the home is listed as-is.
For individuals that want to rush into purchasing a short sale home, the notion that you get what you pay for may take on new meaning. Although you may think you're paying for a home, the as-is condition of a short sale property could have you dumping thousands into making the home livable. Sometimes the idea of purchasing a short sale home is attractive to buyers because of the possibility of getting much more home than they typically would be able to afford. However, buyers should probably proceed with extreme caution. If a home could sell for a higher price, it would sell for a higher price.
While the idea of making a great deal on a home is appealing, short sales are tricky business for both buyers and sellers. If you are considering a short sale home, are forced into a short sale of your home or have purchased a short sale home where the condition was not accurate, you may benefit by speaking to a real estate attorney.