I want to make an offer on a Fannie Mae property, but it needs work, so I plan on offering less than they’re asking. What do you think?

Q:  I have an opportunity to purchase a Fannie Mae property that needs work, 75% of which I can do myself. I plan to make an offer of about $40,000 less than they want, because the house not only needs a lot of work, but I won’t be able to sell right away, I will rent. Is there anything I should check out beforehand? I know the house is offered AS IS, so I think I have a chance. Thanks.

A: Without seeing the property, it’s hard to answer your question. Generally speaking, it’s always advisable to have a qualified engineer and/or home inspector view the property before committing.

“As is” means that you are getting the home in the condition that it is presently.  An inspection can help to make you aware of defects, and can estimate how much work needs to be done to get the property ready for sale and/or rent.

Also, check comparable sales and rentals in the area for properties similar to the one you are considering to ensure that the work won’t overprice the property.  A real estate professional can assist you in determining market price.

In addition, if you do choose to proceed, consult an attorney with experience in this field, as they can guide you through the process.