Raleigh Real Estate - "as-is where-is" What does it really mean?

If you are buying a foreclosure, estate home or any home in need of some LOVE the odds are the property will be sold "as-is" and "where-is."

What does "as-is" mean?

Each "as-is" addendum reads differently. There are 2 types of "as-is" contract.

1. Inspection period prior to going under contract.   ****Unless you are a professional I would not recommend this to anyone****
2. Inspection period once under contract.  

            Now under this type of addendum. You the buyer still has retains the right to have the property thoroughly inspected. At the end of the inspection period you can either take it or leave it. This being said most often the bank will still negotiate for major repairs (Roof, HVAC, Mold, structural items) it depends if you want to continue. And unless otherwise stated in the contract the EM should be refunded to buyer if the buyer chooses to terminate the contract because of inspections.  *****Read all addendums thoroughly. No 2 addendums are alike and the addendums supercede the contract******

 "Where-IS"

This term is rather new to my real estate vocabulary. I first started hearing it 2 years ago.

"Where-is" means that you agree to purchase a property in the condition at the time of contract.

Meaning - If the property has a damaged front door at contract you agree to purchase the property wtih the damaged front door.

Also meaning - If a hurricane comes through between effective date and closing and rips the roof off of the home. The buyer does not have to buy the property because it is not in the same condition at the time of contract.

This is important to understand. Vacant homes are often vandalized. When seasons change vacant homes often have roof leaks that go undetected.

Even though you buy "as-is where-is" you the buyer still have rights.

When buying foreclosures, corporate properties it is imperitive you have a Buyer's Agent with experience.

UPDATE:::  This weekend I had to use this knowledge in order to be released from a contract. We had a downpour in NC on Friday. A vacant home had a roof leak that went undetected throughout the summer but the home has incurred a lot of damage. Buyers are moving to another property with zero hassle from the seller.

For a custom list of all current Foreclosure please visit www.RebeccaSavitski.com