What Does "As Is" Really Mean?

By
Real Estate Broker Owner with Hamm Homes
http://actvra.in/cQ5

Why do Realtors feel compelled to throw out the "As Is" term when trying to get buyer's agents to limit the requests on inspections?

I am representing a buyer on a property that is 30 years old.  We offered the seller ALMOST full price for the property.  In fact, we came in at 98.5% of the asking price.  In today's market, I think that is a great offer.

I have been trying to schedule the home inspection with the listing agent and she keeps telling me that the home is sold "As Is".  I'm sorry, but for a property that is over $450,000, why would the listing agent or the seller think that my buyer would agree to an "As Is" condition?

I have been trying to explain to the other agent that the contract allows for an inspection of the property and we should get through that process before we make blanket statements about the outcome.  I am trying to play nicely.

My business partner, Belinda, doesn't always play as nicely as I.  She was very upset when she heard this and shot an email off to the agent.

Here is what her email stated:

Will keeps telling me that you are saying that the home in BLANK is sold As Is.I'm confused about this.  When did we ever agree to buy the home As Is?  It doesn't specify that in MLS and if it did we would have never written an offer on that home.It will be a miracle if there are no inspection items considering the age of the home.  Our contract specifies the right to have an inspection with a deadline and a resolution deadline for your seller.  The offer we made was almost full price.  At no time did any of us assume that the home is sold As Is. We will do the inspection and let you know if any issues arise. If for some reason BLANK refuses our right to have the inspection done, I feel certain that my buyers will cancel the contract and move on.

I love working in a team because there are many times when one of us needs to be the bad guy.  Glad she took the black hat today and wrote this email. 

Of course, the agent called me to complain and whine a bit, but I told her to hang loose until we actually perform the inspection. 

Every day is a new challenge in the world of real estate!

 

Posted by

Will Hamm
Hamm Homes
Metro Brokers Marina Square
Denver, Colorado
HammHomes@ymail.com
303-358-1147

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Re-Bloggged 4 times:

Re-Blogged By Re-Blogged At
  1. Chuck Carstensen 06/22/2011 07:00 PM
  2. Doug Patterson 06/23/2011 10:22 AM
  3. Lelis Navas 06/23/2011 01:46 PM
  4. Eva Erdmann 06/26/2011 09:25 AM
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Rainer
84,099
Bill Morrow
Bill Morrow, Associate Broker
Keller Williams of Central PA

Even if the property is being sold "As Is", the buyer has the right to determine what "As Is" is.  The seller most certainly has the perogative not to make any concessions after the investigation period as the buyer has the same perogative to walk away should they be uncomfortable with the findings.  Many agents use the inspections as a hold back negotiating tool.  I was in a conversation recently where the agent for the buyer told me the seller they were dealing with was a "tough nut" but we'll be able to get the buyer the price they want after the inspection is completed. Is this really negotiating in good faith?

June 28, 2011 03:33 PM
Anonymous
Kevin D.

Will,

Great post and comments regarding the "As-Is" issue.  Glad your sidekick stepped up to the plate and cleared the issue with the listing agent.  Problem solved and the listing agent definitely got a little wiser.  However, it seems rather odd that a few self-declared experienced agents are using your post as a platform to glorify themselves and attack ALL new or "inexperienced" agents.  As a young agent with 4+ years of experience, I am offended by their rude comments.  What were these people thinking?  So, they were naturally "experienced" in real estate from the very humble beginning of their career some 80 years ago???  How ridiculous, disrespectful and ignorant of fellow Realtors.  My 2 cents.

Kevin D., Global Home Realty, LLC, Fairfax, VA.

July 03, 2011 07:42 AM
Rainmaker
267,982
Kasey & John Boles - Jon Gosche Real Estate
Boise, Meridian, Ada/Canyon/Gem/Boise Counties
Jon Gosche Real Estate, Boise ID

Wow, lots of comments!  Even on bank owned properties that say they are "As Is" we still do an inspection and request items and sometimes the bank does the items on those "As Is" properties.  Anyway, in my area "As Is" doesn't negate the ability to do an inspection or to follow the inspection contingency guidelines.  It's more of a heads of that if anything comes up and you ask for it the seller will most likely say no.  But, sometimes they say yes... - Kasey

July 12, 2011 01:14 AM
Rainmaker
124,583
Matt Robinson
Pensacola Real Estate (850) 292-4000
ERA Emerald Coast Realty
Sometimes I am amazed at some agents, and their lack of understanding of how a real estate transaction works. Was this the listing agents first sale? If it's not specifically in the contract that it's being sold "as-is", then it's not. And even if it is, the buyer still has the right to an inspection, to know if there are any hidden defects that would cause them to withdraw the offer. Just crazy...good for your partner for laying the smack down on that misinformed agent.
December 26, 2011 11:26 AM
Rainmaker
260,268
Wayne B. Pruner
Tigard Oregon Homes for Sale, Realtor, GRI
Oregon First

A house can be sold as is. For a Buyer to purchase a house without an inspection is crazy. The Buyer has to know what they are getting into, even if no repairs are completed.

September 25, 2012 07:06 AM
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Rainmaker
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Will Hamm

Where There's a Will, There's a WAY!
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