I had my first offer on a duplex accepted last Friday. Im really excited everything seems to be falling into place! Id like to first thank everyone here on BP and mostly @JD Martin for all his help through his online business. I was able to gain a lot of knowledge in a short period of time and im grateful for that.
This duplex is being sold as is through the courts. So I did some research on Zoning, it is zoned for a multiple-occupancy (square footage isn't enough but since it is grandfathered in so im ok). Then I called the town collectors office and found out there is a $1500 outstanding tax bill due from 2018, and a $610 water/sewer bill. I was really bummed out to hear this because im not sure I can afford the extra 2k (looks like im eating ramen noodles for the next couple months).
Im going to have the inspection done Friday, and im aware of the work that is needed. I have experience gutting my first home and have practically fixed everything all the way to the studs. But I figured im better off getting it anyway.
My question is if anyone can point out any other issues that could possibly come up with a sold as-is property? The house looks to be in good shape other than some cosmetics.
Thank you everyone
Seems like you have it covered. Almost all properties are sold as is. Make sure you have a title search done and get title insurance.
Thank you @Wayne Brooks
Cant help but worry a little. Ive had to do all the research myself on this. My first home purchase was a sold as-is and there were a number of unforeseen issues, but I didn't have ANY experience then and was just excited to buy a house.
My understanding is that "as-is" simply means the seller doesn't want to do any work to the place before selling. So while it might need x/y/z you'll need to offer a lower price to cover the cost rather than trying to get the same price on the condition they fix the roof or plumbing.
@Michael Pursell thank you. I went and had an inspection done anyways. To be honest, I didn't learn anything new from my own knowledge and first look at the property.
When I gave my offer, I based it off of the work that I felt was needed. I gave my "best and final" right from the start and I stuck to it. We ended up agreeing to a couple thousand dollars more then I offered. Still a good deal regardless, looking at a 12-14% cash on cash return.
The deal is being dealt through the courts so that also worked in my favor. I was more concerned with unpaid taxes, water bills, gas bills, etc. But my lawyer said he would work that into the P&S and make them responsible for it.
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