I was looking at this contract to purchase this morning, its a FAR/BAR contract, and I was staring at the verbiage
"As-IS"
at the top of the contract. It's there twice, once in bold print by itself and once in this statement;
"As Is" Contract for Sale and Purchase
My thoughts were that this has little, to no, meaning to me. This particular purchase has a financial contingency stipulating FHA financing. In my eyes
"AS-IS"
now means whatever FHA says it does. I would expect that many of my Realtor friends, yes I do have one or two, may disagree with me, but if the $$$$$, in this case in the form of a mortgage, doesn't come to the table, than the transaction will not close. So when the underwriter stips for repairs, in my opinion, it will override the stipulation that the property is being sold
"As-Is"
We send out these appraiser people. And now more than ever, we have little to no control, as to what they mention on their reports. I do see the reports, and I don't see where they are making any effort to give us an
"AS-Is'
value. If they see conditions that they feel merit attention, then they reference them in the report. Depending on what the problems may be, it's difficult for an underwriter to ignore. You can be pretty sure in todays current environment that they will be remedied.
The new FHA flipping regs will allow for "no seasoning," however one of the lenders options/requirements will be to order a "home inspection" on behalf of the borrower. That's on top of the appraisal, as I read it. These can be somewhat negative documents and I wonder if they'll be reviewed by the underwriters. That might be a problem, don't ya think?
I doubt the home inspectors will care if the contract states
"As-Is"
I guess "as-is" could apply to cash buyers, but then maybe they'd be better off with a mortgage contingency. That seems like it might give them some additional protection, that they don't have as a $$$$$ buyer. Oh ya, they can just "low ball" the offer.
"As-Is" through a lenders eyes, what does it mean. Not much, unless they're the sellers, but then they're not acting as the lender.
The property is being sold
"As-Is"
Maybe.
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