New Milford, CT real estate talk. What does "As Is" really mean?
As a real estate professional in the greater New Milford, CT area, I do come across the term "as is" many times. "As is" means something different to each party, let me explain.
Selling your home "as is".
Sometimes while listing a house the seller will tell me they want to sell the house "as is". I caution them that if we put "as is" in the listing it will send up a big red flag to the buyer and buyers agent.
"I wonder what they aren't going to fix?"
Perhaps you have spent time and money preparing your home for sale. You had a pre-listing inspection and took care of the issues that were pointed out to you. There is no need for you to put "as is" in the listing, if any issues do come up with a buyers inspection you are not required to fix them. The confusion on this point comes in with the buyers lender. They may ask for the inspection report and red flag certain items themselves, refusing to lend money until these issues are addressed.
But again, it is your right to say no, I will not fix anymore. I have done enough! Just know it might cost the deal, you should always discuss it with your real estate agent and if you are already in contract, discuss it with your attorney as well.
Buying a home "as is".
Buyers do not like to see "as is". I expect certain types of listings will be sold "as is". For instance, a short sale. Often times the home owner does not have the financial ability to address an issue that crops up. If the issue is a real deal breaker, it is not unheard of for the lender to assist correcting the issue in order to keep the sale on track, but don't hold your breath.
Foreclosures are often sold "as is". However I am seeing more and more lenders who understand that if they want to get the property sold they may have to address certain issues. If a buyer discovers that the septic system is shot, they may fix it if they know it will stop any other buyers from purchasing the property. However this is not a given. Homes that are in probate are often sold "as is" also. There just may not be enough money in the estate to pay for any repairs.
All in all, when purchasing a home that is "as is", make sure you get a very thorough home inspection. And make sure you understand that your lender may not be on board with the findings, especially for a first time home buyer.
"As Is" in real estate is not always the case! My advice? Keep it off the listing if you are a seller.If you know there are issues that are going to pop up and you can't address them, price it accordingly. If you are a buyer, just make sure you know what you are walking into. "As is" is really nothing more than a big red flag!