I’m working with several 1st-time homebuyers who have FHA financing and limited funds for closing.
I discourage them from looking at homes selling in “as is” condition, because if the Seller refuses to pay for repairs, the Buyer will be responsible for Lender-required repairs. I don’t want my Buyers spending $400 on an appraisal and another $500 on inspections, just to find out that $2,000 in piering is required.
I can spot warning signs of structural damage or notice that the hot water heater is not raised to be compliant, but some repairs are just unable to be predicted.
So, if the inventory of homes in your market is high, look at the ones where the Seller is prepared to make repairs. Always ask for a residential service agreement when making an offer, so that you’ll have some insurance for things that may break the first year of ownership.
