An "AS IS" Sale Means Seller Will Do No Repairs...or does it?

Reblogger Chris Webster
Services for Real Estate Pros with Island Palms Realty

Original content by Carol Johnson

I'm curious as to how many times an agent has received a contract for an "as is" listing and soon after the home inspection, the buyer's agent sends over a list of 30+ requested repairs including, but not limited to, cosmetic repairs and minor repairs? I have sold numerous homes "as is" and it was always understood by both agents that the Seller can be asked to repair major items or safety-related items. Also if the loan is an FHA, Seller can be asked to repair FHA-related repairs.

What do you do when the other agent has told the Buyer that the Seller will "fix everything" if he/she wants to sell the home? Does this not make the signed "as is" addendum invalid? Is it fair to the Buyer if he/she is not told BEFORE placing the offer that the sale is "as is" and Seller will only be required to repair major mechanical problems and/or FHA-related (if applicable to loan)? Would this not be explained at the signing of this "As Is" addendum?

I think Buyers need to have all of the risks laid out to them when purchasing a home "as is". I have, as a matter of habit, always suggested to my Buyers that if they were going to have a Home Inspection done and the listing states "home inspection results cannot be used as a reason to cancel the contract", I have recommended if they Buyer is definitely leaning towards an offer, a pre-contract (Home Inspection BEFORE making an offer is suggested). That way if they discover numerous deficiencies in a foreclosure listing that would not be required to be fixed by the Seller, they can either chose to go forward with the offer or pass on the home. Those of us who sell a lot of foreclosures know that there can be a lot of minor repairs that can add up to a lot of money for the new home purchaser, especially if they are not handy or a do-it-yourselfer.

There is nothing more disheartening than seeing a 1st time homebuyer who, after putting down their hard earned deposit and signing the contract, discover the real meaning of purchasing a home "as is".

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the man to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the camera to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
828,041
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

The meaning of "as is" should be known before you put the buyer into your car.

August 23, 2010 01:46 AM #1
Rainmaker
142,363
Mike Mayer
Mike Mayer, Broker/Owner - i List For Less Realty, LLC - Lafayette, LA

Most resale homes are sold 'as is' meaning the seller is not obligated to repairs. Some states include an Option Period with termination language allowing the buyer to rescind the agreement of purchase. LA uses a Right of Redhibition language in the PA.

August 23, 2010 02:09 AM #2
Rainer
131,955
Bryan Watkins
LRA Real Estate Group - Mesa, AZ

Most homes have been 'as is'. But we have come across situations where the a/c units have been stolen after an offer was accepted... by Fannie Mae. They were good to replace them promptly.

August 23, 2010 02:14 AM #3
Rainmaker
906,484
Tony Marriott
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Associate Broker, REALTOR

Contrary to popular opinion, Buyer Inspection Period is not an opportunity for a "free look".  The Buyer must act in "Good Faith" when making a decision to cancel during the inspection period.  Deciding they no longer like the floor plan doesn't count.....

October 21, 2010 10:29 AM #4
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the airplane to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainer
12,193

Chris Webster

Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the man to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase: