"AS IS" What Does That Really Mean?

Good morning! This is a really good post...lots of good information....even though I really push home inspections there are still buyers out there that feel ok without having one.....but I make sure they sign a waiver. Have a great day!

Yes, everything is negotiable, except when you a bank as the 'seller', as in short sales. I tell my buyes up front, you WILL be responsible for all repairs-just know that going in to the deal.

It seems that everything is "As-Is" these days!  It makes no difference what the listing says anymore!  People are so immune to that phrase now, regular sellers are now putting their houses up "As-Is".

AS-IS!  Proceed with caution.  Still need to do all the things as a buyer with the process as you would with a normal property purchase.

AS-IS!  Proceed with caution.  Still need to do all the things as a buyer with the process as you would with a normal property purchase.

Thanks for the blog, as it usually goes - Buyer beware - home inspection should always be done, even in an as is sale

I just sold an REO " as is " and got the bank to istall a new boiler by the plumber that was chosen by the buyer! For the inspection I brought in the plumber who informed us that the boiler was cracked. I informed the bank and they offered to fix it.

Lots of good info Gabrielle! So a buyer can still "ask" for repairs? I like the response from Tom Burris too.

We don't have anything similar to an "as is" addendum in MA, but let me ask you this.  Isn't ALL real estate sold as is, where is?  The seller is not compelled to do anything that he does not agree to.  Sure, if he has a septic tank, he needs to have an inspection certificate.  But if he doesn't produce one at closing, the deed won't get recorded until someone produces this document.  So if the buyer really wants the house, is he going to go out and get one on his own nickle?  The law says that the seller must produce said certificate.  It doesn't say who has to PAY for it!  Same with smoke detectors, etc.

As long as there is full and adequate disclosure of material deficiencies by BOTH the seller and his agent, all homes are sold AS IS.  Too many buyers agents expect that the seller will do things after an inspection, etc.  But they don't have to.  The buyer can walk.

I always tell buyers agents that if the seller wanted to replace the 30 year old furnace, he would have and he would have increased his asking price for the home.  But he didn't. So don't ask him to replace the furnace!!!

Sellers can say "As is" all day but around here, once the buyers have the inspection and make requests for repairs, if the seller sticks to his "as is", the buyer can walk. So what the seller is really saying is "Tell them up front, I'm not making repairs."  However, buyers absolutely should still have the inspection before deciding.

as is as just seems that if the seller can get away with selling junk they will ,,,,

as is as just seems that if the seller can get away with selling junk they will ,,,,

I'm surprised to see such judgmental comments like, "As-is to me = lazy seller" and "if the seller can get away with selling junk they will".  I work with a lot of distressed property owners who have to sell their house as-is because they don't have the money to make any repairs.  These are usually short sale situations.  However, that doesn't prevent the buyer from coming back and renegotiating the price based on what was found during an inspection (if they're willing to wait longer for bank approval).

In the home inspection business "AS IS" means schedule extra time to allow completion of the inspection.

In California "As-Is" is default language in our contracts.  It always makes me smile when people go the extra mile to remind me the propery is As-Is.  The language is to protect everyone.  It doesn't mean the seller will not do repairs, it is there to protect them after the sale.

Vic Steele, Broker, Valet Real Estate Services

Where we deliver Silver Platter Service to our

Clients for Life and the people they care about!

Always get the inspections! Even if it is as-is...know what you are buying!  Can you really afford it?  The repairs may make it way more expensive than you realize!

Vic has summed it up nicely, here in San Diego it a caveat that we give to buyers --- some lenders do fix things, others do not. The seller has the right not to repair, it can be an issue if the lenders demand a repair---- it and can be a sticky situation.

I didn't read all the comments, but did want to say that if a health and safety issue arises during the transaction, that usually will not fall under AS-IS and most of the time the seller will have to fix the problem. Had that this last  summer. Buyer purchasing property AS-IS, During inspection period we found a leak in the wall. The seller had to fix that, because if he doesn't it could lead to mold, or become really really bad before close of escrow in 3 weeks.

I've had to explain the concept of as is to both my buyers and sellers many times.  They both look at it very differently.

This is a great explanation.

" As Disclosed" - very good thinking.

Obviously, this is all very dependant upon your agency. As an exclusive seller agency practice, I will do what it takes within the law to protect my client from exposure and contingencies.

Of course, we all must discourage my clients from making a faulty disclosure, but often I am representing an estate or an absentee owner. The executor/or whoever may or may not know a thing about the property. I have many clients who, for whatever reason, have never set foot on the property or haven't done so in years.

Sellers are not always the bad guy, lazy, or cheap and some properties may be currently "junk". Finding new stewardship is the task at hand, not beating up sellers.  

All bidders will either accept our provided inspection, ( yes that is a warranty of sorts ) sign off on acceptance of an inspection waver, or have preformed their own inspection prior to bidding. They can then either bid accordingly or not bid at all.  We have never had any transaction fail to close due to any contingency stemming from our "as is" terms.

Yes, that means health & safety - mold, you name it. Short of true enviorment issues, non cotingent as is with all faults terms will get the seller clear.

Now that doesn't mean that one necessarily would seek out such problems to represent, but they are a fact of life and " as is, with all faults,"  caveat emptor is how one deals with them. 

Myself, I try to prevent as much trouble going as possible to prevent trouble going out. I do not accept every project. Auction works best for property which has a demand for competive bidding to mean something. Even high demand quality property may have some surprising faults.