What Does "As Is" Really Mean?

Reblogger Doug Patterson
Real Estate Agent with Park Place Real Estate, Broker-In-Charge

Just because a home (any home) is being sold "as is"...it should never deter a buyer from performing inspections.  No buyer should buy a home, in my humble opinion, without knowing what they are buying.  The buyer should attend the inspection as well, to learn about their purchase.  If, it becomes too costly, then the buyer can walk away, provided it's done during the usual "due diligence" period. 

 

Thanks to Will Hamm for this excellent post!

Original content by Will Hamm

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!

 

Will Hamm
Cornerstone Homes Realty
Metro Brokers Marina Square
HammHomes@aol.com
303-358-1147

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Rainer
102,960
Tom Robinson
Experienced Real Estate, Professional Serving No. VA and DC
Keller Williams Realty Kingstowne/Alexandria, VA Office

I buy foreclosures from time to time and I get the houses inspected occasionally by a building engineer if I think there are structural issues. I 'd rather take a bath on EMD then buy a money pit. I wouldn't sign any contract that did not give me at least five days to review the property. Of course, commercial can be much longer.

June 23, 2011 10:33 AM
Rainmaker
62,887
Doug Patterson
ABR, Broker-In-Charge
Park Place Real Estate, Broker-In-Charge

Thanks, Tom!   I feel the same way as you do.  Once I explain why clients should attend all inspections, they realize the full value of what they are paying for.  In residential purchases, it's also a time of "bonding" with their new home, as well as understanding all the ins and outs of their soon-to-be purchase.  Having an Inspector that will stop and explain things to the buyers is critical also.  I have such an inspector, and he has "Made their Day" in so many instances. 


Thanks for your comments, Tom

June 23, 2011 10:38 AM
Rainmaker
140,847
Martin (Marty) Snyder
SFR, Ohio Homes for Sale
Berkshire Hathaway HomeServices Professional Realty

I sell a LOT of REO homes and they are all sold "as is".  However, in more than one occasion, my buyers have won concessions from the seller for repair type items, especially if it is mold or radon issues.

June 23, 2011 10:41 AM
Rainmaker
62,887
Doug Patterson
ABR, Broker-In-Charge
Park Place Real Estate, Broker-In-Charge

There you go, Marty!  That's an excellent point....and I've had the same experience also.  It NEVER HURTS to ask for anything, provided it's a "Legal Anything".   


Thanks for your comments..

June 23, 2011 10:47 AM
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Doug Patterson

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Doug Patterson ABR on Zillow