"AS IS" home purchase . What buyers should know before writing the purchase agreement.
This is not legal advice and buyers should seek legal advice when purchasing a home. Laws may be different in different States Ask your Real estate agent to guide you about disclosure laws in the state.
Before making an offer on a home please know that when sellers say they are selling the home ' as is ' it does not mean that you cannot have a home inspection. In fact you should always have a home inspected by a quailfied home inspector.
The purpose of the home inspection is to find out about material defects . If it is going to cost too much to repair / replace items mentioned by the home inspector, based on the contingency clause in your agreement of sale, you can decide whether you want to purchase the home or not. When the seller is selling 'as is,' it means that the seller is not going to do repairs. This is quite common in bank owned homes .
It is important to get a home inspection even when you are buying a home 'AS IS'
The sellers may have a number of reasons for selling 'AS IS.'
1. They may not have enough money to pay for repairs.
2.They may not know any handymen or contractors to get the work done.
3. They may be scared to have strangers come to the house to repair the items.
4.They may not want to be bothered with repairs and may not mind selling for less money. They may have listed accordingly.
5.It may be an inconvenience to repair or replace items that need it for a number of reasons including health issues, relocation etc.
If your contract states that you have the option to back out of the contract if you are not satisfied with the inspection report you can do so. You can also try to get the seller to credit you at settlement for items mentioned in the inspection report.
In some instances the seller may be willing to adjust the price or give you credit at settlement.
Another misconception buyers have about AS IS sales is they think that they will get all the furniture in the house when they buy the house. Furniture is not part of real estate . Fixtures that are permanently installed are included but the furniture is not included unless it is mentioned in the mls and you should then mention in the agreement of sale that it should be included. All inclusions and exclusions should be spelled out. It is common for washer, dryer and refrigerator to be negotiable items, because they are not permanently attached they are not fixtures.
Also make sure you have a clause that says the place should be broom clean, There have been sellers who have left all the junk in the basement saying it was sold AS IS . You may have to buy a home in this condition if it is a foreclosed hom.
It is important to work with a good buyer agent and a good attorney when buying a home.
Sellers should disclose known material defects even if they are selling AS IS. Check with your agent or attorney about discosure laws.
Comments(67)