There appears to be quite a problem in the local market place,possibly around the country on what, exactly, the term "As-Is" means.Such a problem that approx 40-50% of all escrows that fall out are a result of this!
Lets take a look at this term from different sources.
From a California Realtor in Southern Cal- “It means that you are purchasing this home in it’s present physical condition. The seller (bank) is selling you the house without any warranties or guarantees of its condition whatsoever. The seller (bank) will not repair or improve on anything, period.” Winston Westbrook
http://www.biggerpockets.com/renewsblog/2009/11/21/what-does-buying-home-as-is-really-mean-real-estate/
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From WestCoe Realtors- In a general sense, “as-is” means that while you still have your inspection rights as outlined in your purchase agreement, the inspection now becomes for your information only, and not a basis for further negotiation of any repairs. In other words, the bank will generally make no additional repairs to the property, and your inspection report is only for you to know exactly what you may have to fix in the home once you own it.
http://www.westcoerealtors.com/blog/real-estate-blog/buying-a-property-as-iswhat-exactly-does-that-mean/
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Zillow Blog- http://www.zillow.com/advice-thread/What-does-as-is-mean-when-it-is-being-sold-as-a-Bank-Owned-A-Short-Sale/366832/
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I believe the biggest problem with the term "As-Is" and what it means is the word called "Expectation". If you, as a buyer expect the bank or Government agency selling the home to satisfy your request for repair or give you a cash discount etc then you are setting yourself up for disappointment! The odds are that providing a handful of reports won't matter to the bank if they have priced the property well or have had multiple offers in on it!
If the buyer and buyers agent approach the transaction with the attitude that we will have our inspections and see exactly what we have and ask for some repairs or a credit and if we get them Great...if not we are not disappointed because we knew going in the property was being sold "As-Is".
If you approach all the bank owned homes with they had better fix everything on my list you are in for a long disappointing time trying to find your dream home.Banks take everything into consideration when they price a property.They price them to sell for the most part and they are a great value there again for the most part.This is why they have multiple offers etc....because they are sold "As-Is"....the seller (Bank) has not lived in the home and has for the most part no knowledge of the home...
So what is My Definition of "As-Is" in purchasing Redding Ca area real estate? It means what you see is what you get....have any and all inspections...find out exactly what you are getting for the purchase price...then if you ask for some repairs or a credit be prepared to cancel or take it "As-Is" if they come back and say no.No expectations....therefore No disappointment!
As a Buyer if you know what the Banks definition is-"What you see is what you get" have any inspections done but know there may be no concessions based on what you find-it's for your knowledge....then there may indeed be less stress in the market place!
Regards,
Richard
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