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What does "As Is" mean

In the past week or so I am beginning to think that either i am going somewhat crazy or AS IS doesn't mean what I thought it did, I have been getting Buyers inspection requests from buyers "just to see if they would do something" or "just fix that, now the items i have been getting is either petty or just trying to get the price down.

if the seller would be crasy to answer, does that allow the buyer to cancel the contract due to the seller refusing to make reasonable repairs?

My opinion is that this was handled when the buyer signed the contract, am i missing something?

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Posted by Andrew Monaghan CRS, GRI, EPro Associate Broker on 02/10/2008 02:50 AM

Comments (9)

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9 Comments on What does "As Is" mean

FEB

2008

If believe the buyers can cancel the contract if there is an inspection contract in the PA. I think they may be asking for a further price reduction.

Here in Illinois "AS IS" means just that. However, the buyers may still perform an inspection and if they are not satisfied with the results of the inspection they may cancel the contract within the time specified.

Yes, this is something that as a listing agent and negotiating for my sellers I get very upset about.

The buyers agents don't educate their buyers to what AS IS is. When I buy something AS IS it is AS IS, I take the responsibility on to handle anything that comes up. After an inspection it should not be a time for the buyers to re-negotiate or ask the agents to help out if the sellers will not. I can understand if they do an inspection and the house is going to fall down due to extensive termite damage. I mean extensive, if it is one sill board that needs replacement that is the buyers responsibility. So lets get back to meaning what we are saying. Don't let the buyers say AS IS if they don't really mean it!

We use 2 ways. As-Is with inspection or without. If the buyer wants inspection, they can have one, but the seller is giving them the opportunity ONLY to take the property or reject it. There will be no repairs. If an offer comes in with AS-IS stated and no inspection period, it is a done deal. No repairs, no inspections. I assume they have already satisfied themselves as to condtion and don't ever bring it up again.

Here "AS IS" means nothing unless several paragraphs on the contract are "scratched" through, or the listing specifically asks for those paragraphs be omitted from the contract. Otherwise I always write the contract as if it was any other purchase. Even if the sale is "AS IS" i will always write in an inspection period in to protect the buyer. As a real estate agent it is not our job to guess what a seller will, or will not repair. We should present ALL offers regardless of our approval and leave it up to the seller to make that determination.

I've written several contracts on "AS IS", bank owned properties and the bank made repairs. One of those contracts resulted in almost $20k in repairs on an "AS IS" property. Never say never.

JUN

2008

"AS IS" is starting to mean nothing in Florida. "As Is" is the way you get it when you close and go see what is left inside . I am closing on a property that the buyer is out of state, bought by MLS listing discription, the MLS said "As Is" with heated pool, heated spa, hurrican shutter, washer ,dryer, warranty. Guess what? We were days from closing I had an inspector go for an inspection and he finds or should I say does not find "no heater for pool, no heater for spa, so shutters, no washer, no dryer and they will not provide warranty. Buyer is to far into this sale, committed for several reasons.... guess what do you the Ethic Board is going to hear from this buyer.

Suggestion, take pictures, walk through and make list, attach and spell out everything. What happen to morals, values, principals and ethics????

JUN

2008

Everything on the market - pretty much -- is as is. The buyers are not hearing it. They continue to submit contracts that ask for the seller to pay for the inspection and also any damages. They also ask the seller to give them a credit back and then they go to the dp assistance. So nothing has changed with this market -- the buyers want the property -- pretty much -- for nothing.

They are ignoring the REO - as is. They want a traditional sale and buy it at REO price.

I believe the listing agent should put a binder and disclose the obvious -- just to cover the ethic part. Just because the bank is not obligated to disclose because they don't know -- does not mean that the agent see something standing and do not disclose. That can come back to bite, hard.

In defense of buyers, they are not there to buy junk. They of course, want a deal. A good deal.

Rosemary hit the nail on the head with her statement about buyers wanting a traditional sale with a REO price but as-is is just what it implies. Caveat Emptor!!!

APR

In our office our listing agents define it as "The seller tells the buyer what he knows "it is", then the buyer has time to determine what "it is"; and then the buyer decides if he wants to buy it "as is". How could you defend a seller who knew a beam was cracked nearly in half and then it fell and killed the buyers baby a month later? The suit would define both the inspector AND the seller as defendants. Otherwise, "as is" would just allow people to sell things that they know are broke without recourse.

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