If you are trying to buy or sell a home, you know how competitive the market now is.
As a result, many buyers are taking homes "as is" with no inspections or contingencies.
But after learning of one couple's nightmare story, you might hesitate in doing this so you don’t waste your money.
The housing market is so hot now that desperate buyers are now dropping contingencies and inspections to get a home.
One couple learned why that can be a bad idea.
Scott and Lorrie Hill recently found their dream home.
But to win the house, they purchased it "as is," a decision that's now costing them a fortune.
"The risk to buying a home without doing your due diligence of protecting yourself is you could end up losing the home," Lorri Hill said.
They have spent tens of thousands on repairs, including rebuilding this river view deck.
"We were OK with that because we loved this house," she said. "What we didn't expect were legal fees."
She says her family has faced more than $100,000 in attorney fees so far, over a decades-old property line dispute.
Realtors say buying without inspections or contingencies is especially risky with older homes - where you can find you are dealing with termites, water damage, or in HIll's case ... long-running property disputes.
"If you don’t do an inspection, you can end up with huge bills you weren't expecting," she said.
But realtors Steve and Denise Taylor told me many people are doing that in multiple-offer situations.
"Especially dealing with multiples, most people are waiving inspections," Taylor said. "They are waiving inspections and waiving appraisals."
So don't let this happen to you and follow these tips:
- Work with a licensed realtor.
- Have a real estate attorney look over the contract.
- Do an inspection: it may allow you to back out of the deal.
- Purchase title insurance, in case someone else tries to claim your land.
"Get that title insurance, it could help you.," Taylor said.
The Hills say they can’t even sell their home now, until their land dispute is resolved.
So be careful and as always, don’t waste your money.
