I would like to share a recent experience that relates to the use of a standard "As Is" Addendum that was submitted with a recent offer to purchase from one of my clients.
The simple choice to use this form afforded additional comfort for my clients, and strengthened the trust and confidence within our Realtor-Client relationship!
The house they were attempting to purchase was a brand new construction, custom built home. It seemed to be beautiful, but it was in fact wrought with problems and complications. The builder ran out of money and never finished the house. In fact, many things that appeared to be finished were actually done quite poorly.
While we were told by the selling agent that about $15k would take care of any outstanding issues with the home, my clients paid for a home inspection which revealed a totally different story. Things were much worse than my clients thought. They were facing a minimum of $25k or more that was needed just to make the home livable.
Along with the offer to purchase, we included the "As Is" Addendum and chose the option at the bottom of the page which includes the following:
"Buyer shall have _____ calendar days from the effective date of the contract to conduct such inspections and/or tests as buyer deems necessary (the "due diligence period"). Prior to the expiration of the due diligence period, buyer shall have the unilateral right to reject the condition of the property and terminate the contract upon written notice to Seller or Seller's agent..."
Boy, was this As Is Addendum important to my clients after they paid for and received the home inspection!
The extra work that the inspection report revealed and the estimated costs to complete such work simply scared off my clients from wanting to continue with the purchase of this particular home.
Yes, I know, we could have written in a simple contingency regarding a "satisfactory inspection". However, after educating my clients as to the various ways we could address this topic, the As Is Addendum standard form offered a superior level of protection and ultimately added comfort for my clients. That comfort level they felt and the professionalism I conveyed by explaining all the details and options went a long way in gaining their long-term trust and appreciation!
When I told my clients that I had their best interests at heart...I meant it and I proved it!