" AS IS' Home purchase . What buyers should know .

By
Real Estate Agent with RE/MAX Centre Realtors
http://actvra.in/srx

"AS IS" home purchase . What buyers should know before writing the purchase agreement.

This is not legal advice and buyers should seek legal advice when purchasing a home. Laws may be different in different States Ask your Real estate agent to guide you about disclosure laws in the state.

Before making an offer on a home please know that when sellers say they are selling the home ' as is ' it does not mean that you cannot have a home inspection. In fact you should always have a home inspected by a quailfied home inspector.

The purpose of the home inspection is to find out about material defects . If it is going to cost too much to repair / replace items mentioned by the home inspector, based on the contingency clause in your agreement of sale, you can decide whether you want to purchase the home or not. When the seller is selling 'as is,'  it means that the seller is not going to do repairs. This is quite common in bank owned homes .

It is important to get a home inspection even when you are buying a home  'AS IS'

The sellers may have a number of reasons for selling 'AS IS.'

1. They may not have enough money to pay for repairs.

2.They may not know any handymen or contractors to get the work done.

3. They may be scared to have strangers come to the house to repair the items.

4.They may not want to be bothered with repairs and may not mind selling for less money. They may have listed accordingly.

5.It may be an inconvenience to repair or replace items that need it for a number of reasons including health issues, relocation etc.

If your contract states that you have the option to back out of the contract if you are not satisfied with the inspection report you can do so. You can also try to get the seller to credit you at settlement for  items mentioned in the inspection report.

In some instances the seller may be willing to adjust the price or give you credit at settlement.

Another misconception buyers have about AS IS sales is they think that they will get all the furniture in the house when they buy the house. Furniture is not part of real estate . Fixtures that are permanently installed are included but the furniture is not included unless it is mentioned in the mls and you should then  mention in the agreement of sale that it should be included. All inclusions and exclusions should be spelled out. It is common for washer, dryer and refrigerator to be negotiable items, because they are not permanently attached they are not  fixtures.

Also make sure you have a clause that says the place should be broom clean, There have been sellers who have left all the junk in the basement saying it was sold AS IS . You may have to buy a home in this condition  if it is a foreclosed hom.

It is important to work with a good buyer agent and a good attorney when buying a home.

Sellers should disclose known material defects even if they are selling AS IS. Check with your agent  or attorney about discosure laws.

 

 

 

 

 

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When you read about events please check the year for the event as some people find information a year later and think it is for that year. . The posts remain online even after the event.

Gita Bantwal is a Realtor with RE/MAX Centre Realtors in Bucks County, a Northern suburb of Philadelphia. You can view 1000s of listings on her web site www.GitaBantwal.com

 

She can be reached at 215-343-8200x124 or direct 215-275-8491 or via email gita01@aol.com

If you would like a FREE MARKET EVALUATION OF YOUR HOME IN PHILADELPHIA, BUCKS or MONTGOMERY COUNTY call me at 2152758491

 Gita specializes in Active adult communities and is a Seniors Real Estate Specialist. She holds the ABR designation (Accredited Buyers Representative) and specializes in selling to first time buyers as well as move up buyers.Gita also hold the CRS designation , Certified Residential Specialist and the CDPE designation as well. Information about real estate market is deemed to be correct but is subject to errors and omissions and should be verified independently.. Opinion expressed by me or others  in my post and comments is not to be construed to be  legal advice.I am licensed in Pa. Check real estate laws in your state as they may be different than in Pa.

IF YOU WOULD LIKE TO SUBSCRIBE TO MY BLOG         CLICK HERE   OR EMAIL ME AT Gita01@aol.com

 

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Re-Bloggged 5 times:

Re-Blogged By Re-Blogged At
  1. Ritu Desai 02/02/2012 02:39 PM
  2. Gene Riemenschneider 02/04/2012 12:29 PM
  3. Gabe Sanders 02/06/2012 06:19 AM
  4. Dale Taylor 02/25/2012 10:36 PM
  5. Joy Daniels 10/06/2012 03:39 PM
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Topic:
Real Estate General Information
Location:
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as is home sale

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Show All Comments
Rainmaker
680,643
Kay Van Kampen
Realtor®, Springfield Mo Real Estate
RE/MAX Broker, RE/MAX Solutions

Representing the buyer, the term "as is" means getting a home inspection and making sure the repairs needed doesn't include any major deficiency that the buyer can't live with. 

For the sellers, "as is" means they will not make repairs........clearly stated.

February 03, 2012 07:04 PM
Rainmaker
647,735
Evelyn Kennedy
Alameda, Real Estate, Alameda, CA
Gallagher & Lindsey, Alameda, California

Gita:

I forget that some buyers may thing the seller is leaving the furniture as well as the house in an as is sale.  I must remember to say that when my customers are looking at homes. 

February 03, 2012 07:19 PM
Rainmaker
480,191
Elyse Berman, PA, ABR, GRI, Realtor
Boca Raton, Delray & Highland Beach- 561-716-7824
Realty Associates Florida Properties, Boca Raton, FL

Good information, Gita!  I would just add that a lot of homes, especially in Florida, are sold as is often because there is no one here to do the repairs.  The homes are vacant - I am not talking about bank-owned homes here.  These could be estate sales.  No one is here, so it is easier to sell it as is.

Congraultaions on the feature!

February 03, 2012 09:36 PM
Rainmaker
538,691
Gretchen & Mel Ahrens
ColumbiaGorgeFSBO.com

Most real estate transactions are technically 'as is' and it's the inspection that helps the buyer determine if that's acceptable. Home warranties are the way around that.

Gretchen

February 03, 2012 10:10 PM
Rainer
124,785
Laurie Clark CRB Angel Realty LLC Your Monument Realtor 719-502-6572
Angel Realty, LLC
CRB-CCSS-ASD-HBS-RSD-Denver Short Sale Agents

Congrats on the feature! An inspection can save a buyer thousands of dollars when it comes to purchasing as is homes. Thanks for sharing and have a great weekend.

February 03, 2012 10:36 PM
Rainmaker
1,238,774
Gene Riemenschneider
Turning Houses into Homes
Home Point Real Estate

Exactly "As is" simply means "we will not do a thing to fix it up".  Of course if you find something serious they will often change their minds.

February 03, 2012 10:58 PM
Rainer
171,630
Luis Iniguez
Search Inland Empire Homes For Sale - Short Sale Agent
Option One Real Estate

This is the case with almost every shortsale and REO.  Banks are not willing to cover any expenses.

February 03, 2012 11:27 PM
Rainmaker
313,510
Sandy Acevedo
RE/MAX Masters, Inland Empire Homes for Sale
951-290-8588

Hi Gita, well, it looks like you have certainly hit every part of that issue. Well done!          

February 04, 2012 01:24 AM
Rainmaker
275,750
Kasey & John Boles - Jon Gosche Real Estate
Boise, Meridian, Ada/Canyon/Gem/Boise Counties
Jon Gosche Real Estate, Boise ID

This is the second post recently I have read that mentioned "broom clean" in the contract.  I don't know if you have a specific already written clause in your contract, but it seems that some (many?) states do.  We don't, and it would be interesting (and kind of nice) if we did.  We don't have any kind of clause as to how the home has to be left. -Kasey

February 04, 2012 02:20 AM
Rainmaker
1,882,957
Roy Kelley
Roy and Dolores Kelley Photographs
Retired Real Estate Broker, Maryland Blogger

Good Saturday morning.

Have an outstanding weekend as home buyers take advantage of the attractive prices and record low mortgage interest rates.

February 04, 2012 08:45 AM
Rainmaker
1,846,292
Gita Bantwal
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel
RE/MAX Centre Realtors

Kay, Agents should explain it to their clients so that there is no misunderstanding.

Evelyn, If it is an estate sale buyers assume there is no one who want the stuff. They forget there are heirs who will take it.

Elyse, That is one of the reasons they sell AS IS.

February 04, 2012 05:23 PM
Rainmaker
1,846,292
Gita Bantwal
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel
RE/MAX Centre Realtors

Gretchen, Buyers should read the fine print as warranty companies do not cover everything.

Laurie, I agree. It is good to have a home inspection.

Gene, Sellers do change their minds sometimes

February 04, 2012 05:25 PM
Rainmaker
629,608
Stephanie/Bob The Ruiz/Miller Team
The Ocala Dream Team
Keller Williams Cornerstone Realty

Hi Gita,  Of course all are distressed sales are As-Is.  But I suggest many of my sellers to go as is to protect them from large repairs.  Usually, this is for older homes and have been vacant for a while and the offer is low so the buyer is already getting a good deal.

February 05, 2012 09:22 AM
Rainmaker
1,846,292
Gita Bantwal
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel
RE/MAX Centre Realtors

Bob, I agree there are good reasons to sell As IS.

February 05, 2012 09:45 AM
Rainmaker
347,853
Sylvie Stuart
Home Buying, Home Selling and Investment - Flagstaff, AZ
Keller Williams Check Realty 928-600-2765

There is a lot of misunderstanding surrounding the as-is addendum and with properties being advertised as "as-is". This will be very helpful for consumers, the most valuable is knowing that you can still have an inspection to look for deal breakers.

February 06, 2012 09:00 AM
Rainmaker
1,846,292
Gita Bantwal
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel
RE/MAX Centre Realtors

Luis, We should explain it to buyers and make an offer accordingly.

Sandy, Thanks for reading.

Kasey, There should be some kind of a clause so that there will not be surprises.

Roy, Have a good day.

Sylvie. It is important to have a home inspection.

February 06, 2012 09:06 AM
Rainmaker
671,539
Elite Home Sales Team
A Tenacious and Skilled Real Estate Team
Keller Williams Realty

Inspection is even more important on as is sales. When the issue is major often a bank will make the repair on the property.

February 25, 2012 10:43 PM
Rainmaker
1,846,292
Gita Bantwal
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel
RE/MAX Centre Realtors

Elite home sales team, I agree. Inspections are important in' as is 'sales.

February 29, 2012 02:28 PM
Rainmaker
546,269
Gary Frimann
California Broker and REALTOR
Eagle Ridge Realty / Signature Homes & Estates

Gita, that was a great explanation of an "as-is" sale that I've ever seen.  Whatever the reawson, I'm glad you included the hint that the seller may take less money.  SOme people are scared off by someone wanting an as-is sale.

October 06, 2012 05:41 PM
Rainmaker
1,846,292
Gita Bantwal
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel
RE/MAX Centre Realtors

Gary, Sellers should realize that buyers do not offer full price if it needs work.

October 07, 2012 03:31 AM
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Rainmaker
1,846,292

Gita Bantwal

REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel
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