Home For Sale "As Is" or Is It?
I've always felt the term "As Is" could be construed in a variety of ways. Many times buyers, and sellers for that matter, misunderstand the contractual meaning. Great post by Jana Haren!
When I see a home listed for sale “As Is,” it usually means there are some red flags to consider. Often times, homes that are being sold “as is” will require quite a bit of updating and, more than likely, some major repairs.
Whatever the case may be, the Seller is stating that they are not willing/not able to make any repairs to the house.
Does that mean that once your offer has been accepted and your As Is Addendum has been signed, that you have to go through with the purchase come what may? Absolutely not! You’re still entitled to your inspection period and it is highly advisable that you hire a qualified, licensed professional inspector to conduct one for you. If, during the inspection period, items of defect are found that the Buyer disapproves of, Buyer maintains the right to cancel the contract and receive 100% of their earnest money or provide the Seller with an opportunity to correct the items disapproved. The As Is Addendum simply states that the Seller is not obligated to correct any items the Buyer disapproves of.
I recently completed a personal “As Is” transaction for flip purposes. During the inspection period, multiple areas inside walls and in the attic were found to have severe water damage. Knowing my rights, I completed the Buyers Inspection and Sellers Response (BINSR) form requesting that the Seller repair some of these areas. The Listing Agent became indignant with me, stating that I had agreed to purchase “as is” and I had no right to renegotiate at this time. I calmly pointed out to the Listing Agent that, per the contract and the As Is Addendum, I maintained my rights to inspection and subsequent cancellation or request for repairs. I was simply giving the Seller the opportunity to fix my disapproved items rather than cancel. Long story short, the Seller did not repair the items but they did lower the sale price of the home.
What is the take away on this? “As is” is not written in stone. The Buyer maintains the right to inspection and subsequent cancellation/request to Seller for repairs. What “As Is” is really saying is that the Seller is not willing/not able to make the repairs on the property.
Jana Haren, Realtor, MSSC
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