Buying or Selling a Home/as-is selling


Hello.  First of all thank you for your time.
Here's my question- My husband and I are going to try to sell our house to my sister in as-is condition, because we don't want to put too much money into the place and she's fine with it the way it is.  I was wondering if banks will give her a loan for the house if it's not up to code?  (There are foundation issues, amoung other smaller things).  We;re selling pretty cheap so I don't know if that matters, $55, 000.  We are in Illinois.
Thanks again :)

Hey, Nina.

One never has to bring a house "up to code" in order to sell it. That's because it would be impossible to do without destroying the house and rebuilding it. Every code book has a little paragraph in it that says something like "As long as the house continues to be used for its originally intended purpose it does not have to be brought up to code as the codes change."

With that said, many banks won't provide a loan on a house that has certain issues, and those issues depend on the type of loan -- VA, FHA, etc. Known foundation issues are usually one of those issues, as are certain electrical issues, roof issues, plumbing issues.

The most important thing for your sister to do is to have a home inspection by the best home inspector she can find. She needs to know exactly what she is getting in an "as is" sale. Whether or not you agree to make repairs doesn't really matter, but I would hate for something to happen down the road that causes an unrepairable rift between you and your sister.

Illinois is an interesting state because most of your paperwork, disclosures, etc., during a real estate transaction are handled by attorneys whereas most other states let the Realtors handle everything. I would suggest contacting your preferred attorneys and loan agent, asking them very specific questions about what you and your sister want to do, and following their advice closely.

Hope that helps.


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Russel Ray


Through home inspections, I provide an education about real estate. I'm one of those rare home inspectors who has been involved in real estate in many different capacities: as a Realtor (in Texas), as a property investor/flipper, as a teacher, and as a marketing expert (for Realtors and home inspectors). I believe that my experience as a Realtor and property investor provides me with a different viewpoint about home inspections in that I work for my Clients, but when there are other people involved in helping my Clients, then I firmly believe in helping them, too. That includes Realtors (both the seller's and the buyer's), repair professionals (e.g., plumbers, electricians, etc.). If I can get all the players (seller, seller's Realtor, buyer, buyer's Realtor, and repair professionals) playing in the same sandbox together to accomplish goals as a TEAM (Together Everyone Accomplishes More), then I believe I have succeeded in my job as a home inspector. My profession is, in my opinion, much more than simply documenting the condition of a property and then take the money and run. I am also a rare breed in that I don't believe that one inspection fits the needs of all Clients, and I have led the industry in understanding that fact. For example, the goals of a property investor are far different than the goals of someone buying a property to live in. The goals of a seller (a pre-listing inspection) are far different than the goals of a buyer (a pre-purchase inspection). To that end, I offer 14 different types of inspections, e.g., STANDARD, LIST, RENTER, BASIC, MAINTENANCE, SPOT, and more. I believe in giving the benefit of the doubt to all professionals in whatever industry they represent until they prove me wrong.


Over 42 years in all aspects of real estate--building homes, renovating homes, inspecting homes, Realtor.

National Association of Certified Home Inspector, Better Business Bureau of San Diego

Graduate of Texas A&M University; College Station, Texas

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