Special offer

“I’m Selling My Home As-Is… Why is the Buyer Now Asking For Repairs?”

By
Real Estate Agent with Chris Alston (Keller Williams Realty, Silicon Valley, California) 01338415

“I’m Selling My Home As-Is… Why is the Buyer Now Asking For Repairs?”

 

Ironic, huh?  You tell your real estate agent that you want to sell as-is.  I mean you really tell them that you are not interested in doing any repairs or alterations to the home you are selling.  You want the buyer to take care of anything that is needed to be done, as you are ready to move on. The buyer has to take it or leave it!

 

Your agent recommended that you get some inspections, so that the buyer will know what they are buying…  So the buyer will have a chance to review those reports, and make an offer based on the current condition of the property as opposed to going in blind.  They said you should get a property, chimney, roof, and pest inspection BEFORE you put it on the market.

 

You declined doing any of those, and reminded your agent you were selling as-is.

 

 

A buyer presents an offer, and your agent shares it with you.  They have a loan and property condition contingency. It is the price you want, and the terms are good as long as they agree to it being an as-is sale. You accept. 

 

After the contract is ratified, the buyer must do his due diligence. I mean, inspect the property.  The buyer’s agent recommends a property, chimney, roof and pest inspection.  The buyer agrees, and gets the inspections completed during their property condition contingency time period. 

 

The buyer discovers over $10,000 in damages… 

 

The seller is selling as-is, and said they do not want to fix anything. Buyer has a contingency that allows him to back out of the contract.  The buyer is not comfortable with that much damage that was not known to him prior to writing the offer.  So, the buyer asks the seller to fix the damages, or give him a credit so they can fix it after the close of escrow.  

 

Seller can accept the request (or negotiate a lower amount), or the seller can say no and risk the buyer walking…  And if the seller is that close to closing on their house, and moving on, do you think theywill say no?

 

So is an as-is sale ever really as-is?  Well, sometimes…  I mean maybe… 

 

Moral of the story.  As a seller, order all of your inspections up front…  AND require the buyer to review and sign all disclosures when they present the offer.   That way, the buyer knows everything about the home, and you’re less likely to have the buyer negotiate repairs or ask for credits during the closing period.   The biggest reason why sales go sour, is because buyers often discover something during the escrow period that they did not know about when they made an offer.

 

Posted by

 

Chris Alston

 

Home sales and purchasing specialist

Keller Williams Realty, Cupertino

19400 Stevens Creek Blvd, Suite #200

Cupertino, CA 95014

408-850-6955

408-850-6956 fax

calston@kw.com

www.LivePlaySiliconValley.com

 

Find me on:

Photobucket Photobucket Photobucket  

 

 

 

 

 

 

 

 

 

Comments (12)

Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

     I listed a house for people who moved out of the country.  I listed another house for the family of a lady who had Alzheimer's and was placed in a nursing home.  Both houses were listed "As Is, Subject to Inspections".  But both houses got offers that requested repairs!

Apr 15, 2014 09:42 AM
Cindy Edwards
RE/MAX Checkmate - Johnson City, TN
CRS, GRI, PMN - Northeast Tennessee 423-677-6677

I'm dealing with that right now.   The buyer is asking for a $450.00 repair and the buyer is holding their feet to the floor.

Apr 15, 2014 10:23 AM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

It does also has to with Days on Market. In a Sellers market this may be a an easier sell "AS-IS". After a period of time, you might want to make a repair or two...

Apr 15, 2014 01:43 PM
Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

I like the idea of doing all of the inspections up front Chris, that way all the information is know ahead of time.

Apr 15, 2014 04:47 PM
Chris Alston
Chris Alston (Keller Williams Realty, Silicon Valley, California) - Campbell, CA
Silicon Valley, California

Fred - It happens more than we think! :)

Paul - Yea, you're right.  That can have an effect on what we do vs what we don't do.  Good point! 

Cindy - $450 bucks??? Ugh, that can give you heartburn!!!

Tom - Great idea! :)

Apr 15, 2014 10:30 PM
A. J. Zaki
REMAX Realty Pros - Boca Raton, FL
Home Finder In Florida

Great advice. Thank you for sharing this.

Apr 16, 2014 03:41 AM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Chris, Just saw this, and I wound up writing about the same topic this morning without knowing you'd written one already.  The only difference is I came at it from the buyer perspective. 

Apr 16, 2014 05:35 AM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

As Is is not always As Is. More deals are lost over those two little words than any other.

Apr 16, 2014 01:43 PM
Chris Alston
Chris Alston (Keller Williams Realty, Silicon Valley, California) - Campbell, CA
Silicon Valley, California

AJ - Thanks!

Bil and Liz - Hi guys!  I'm going to go check your out now!  Great minds think alike!  :)  Man oh man, and I rusty in my blogging!

Margaret - True true!

Apr 16, 2014 01:51 PM
Pete Xavier
Investments to Luxury - Pacific Palisades, CA
Outstanding Agent Referrals-Nationwide

Chris,

Just eight more log-ins only and you'll be at half a million!

The line is near...

Oct 11, 2014 01:07 PM
Chris Alston
Chris Alston (Keller Williams Realty, Silicon Valley, California) - Campbell, CA
Silicon Valley, California

That's funny. :)

Oct 11, 2014 01:53 PM
Troy Erickson AZ Realtor (602) 295-6807
HomeSmart - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Chris - This is a very typical scenario when it comes to sellers who just want to sell their property as-is. They don't understand that the buyer will typically get an inspection, and want any issues they discover taken off the list price if the seller is not willing to perform any repairs. As-is does not mean the buyer has to buy at the agreed upon offer price even after the home inspection discovers things.

Jan 27, 2016 01:40 AM