The Concept Of AS IS Purchase Contracts Eludes Buyers To Their Detriment

Gary,

The AS IS purchase seems pretty clear, though most buyers still want something for nothing, especially the Gen Xers, for what I've observed of our brokerage's clientele... g

In Florida the As-Is provides more of an exit for buyer leaving sellers hanging.  I find it useful to know the agreements better then most, I advice new and old timers to continue to review the forms we use on a regular bases.

Here, at least in my mind, "as is" means just that.  You can have your inspections within a certain period.  This is for informational purposes only.  If something is more than you figured on, you can walk during the contingency period.  If you don't walk, you accept the property "as is".

Interesting.  I thought most agents were at least familiar with this scenario.  Although, in Minnesota, as-is can usually only apply to Banks (Investors).  And, even then there is some close scrutiny. 

Had a buyer's agent recently send me a list of repairs items on an "as is" contract.  When I reminded them of the contract terms they said...but my buyer is fill in the blank.  Sorry your buyer may want the seller to cough up a bunch for repairs but it isn't going to happen.  They backed off quickly but there were a few moments of oh &^%% what is going to happen now.

Boy howdy, Gary, you can't say this LOUD ENOUGH. I am suggesting! There are SO MANY terms in real estate that the common consumer is not aware of or educated about and that makes for another reason why you need to pick a good and ethical realtor who will educate you and protect you start to finish.

Rich

Gary,

We’ve lost two important skills.

"Verbal staging" where a salesman paints a picture in the buyer’s mind.

And, taking personal responsibility for the opportunities we seek.

It’s sad agents don’t sell much, they simply take orders.

Consumers want everything guaranteed, they want the opportunity, but are not willing to take a risk.

Even sadder FHA 203k offers the opportunity to turn that fixer-uper into a palace as soon as you close with one very affordable loan.

All that being true, why not borrow tires and wheels and have that trailer hauled to the dump?

Bill

Texas buyers need to understand that our 1-4 resale promulgated contract is also an AS-IS contract.

Gary: Must be a hot topic, I just made a comment on a post about this. I always ask for repairs on "As Is", but I do educate the buyer that we may not get them.  After the inspection if you get all of the estimates in writing it actually can be successfully done, but again the key is to warn the buyer that they may not get them...I've even done inspections before the buyer transfers their earnest money.

There is a lot of mis information on this point.  In Minnesota, AS IS still does not let the seller off the hook for disclosure.  Except banks of course.

Gary, great write-up on a very important topic. If the buyer is not aware that they can lose their earnest money to me we, as agents, especially their agent, have missed the mark in a big way. Continuing education offers a lot in terms of how to be a better Real Estate agent/broker but this to me is real estate 101.

Oh "As Is" is a dangerous world!  This reminds me of one of my rehabs,.....

hello Gary, most of Manhattan New York contracts are "AS IS", since most of the sales here are condos or coops, the inspectors can only access within four walls. So, most of the buyers are well educated with the condition and the terms of the contract here.