I’m looking through a lot of listings in my MLS for properties below $40k and I keep seeing home where the price has droped by half in the last 4 months. So I’m seeing some that started at 50K and are now around $25k.
Just seems strange to me. They mostly all say sold As-Is. Do you think they have major problems/need lots of work or are they just trying to get rid of them fast?
Thanks,
Jon
I have been encountering properties like that also. The majority of them that I call on have foundation issues. :banghead
they could be listed through HUD or some other entity that doesn’t want to deal with disclosures?
Don’t be afraid of a good deal. Is there likely to be some maintenance issues with a house listed “as-is”? Yes! However, that’s where the good deals are. If you want to buy a property in perfect condition, you’re usually going to pay for it. Many of these “as-is” properties have been trashed by terrible tenants or owners who were being foreclosed upon. This often includes holes in the walls; spray painting grafitti on the walls; and trash strewn everywhere. Traditional buyers and new “investors” won’t buy them because they can’t see past the mess. However, an experienced rehabber knows that holes in drywall are easily fixed, painting is easy and cheap, and trash is easily picked up. These can be GREAT deals!
Mike
It’s probably both. My advice is to look at as many of these as you can. It will really help you get an idea of what an ‘as is’ house is 
The more houses in disrepair that you look at, the better you will be able to judge repair costs.
Find a realtor who understands what you want to do with the property when you are done with it. You might find the one out of 20 that needs little to no structural work, and mostly updating.
Lorik,
I have bought and rehabbed a BUNCH of as-is properties. In fact, that’s almost all I buy. I have not seen many of these that had serious structural issues.
Mike
I agree with Mike. We just purchased a HUD owned house that was “as is” (they all are) and it’s fine. The reason for the as is wording is to cover their arse in case of a problem. No disclosures makes it easier to deal with a book of property.
Wish I were so lucky! 4 of the last 5 ‘as is’ properties I looked at in the last couple weeks had serious foundation problems.
quick? .if a house was built lets say 1910 with wood foundation but looks good is there anything to be worried about because of the age and foundation being wood is there a time limit for this house to crack?
You’ll never know what the reason is until you actually go look at them. You can’t invest in REI by sitting at home looking at a computer screen. I don’t care what the guru said.
So what if there is a structural problem? Is it a problem that can be fixed, and if so, at what price must you buy that property in order to fix the problem and still make a profit? Simple enough?
hit equitys corporation, quick answer: YES.
if termites are a problem in your area, then a true wood foundation would be a problem I dare say. I know of no way to give you a “time limit” on the property before it “cracks” but I’d say that there is one.
Besides foundation, the older a property is, the more likely that it is functionally obsolete. You do not want a f/o house.
Raj