Is "As Is" Really As Is?

Great explanation of “As-Is”. 

Sold a listing last year, “As-Is” and it was an interesting one. The sellers decided to counter back an offer. They accepted the price, which was fairly low, but added “As-Is” at that price. After the inspections the buyers still asked for items to be repaired. Since it was electrical & my seller is an electrician he would not allow that to go “As-Is”. It made me very neevous about opening them up for liability. 

Then the buyers tried to back out of the deal two weeks prior to the closing, which led to retaining an attorney. It was a mess, but ended with a closing. 

For many years here in AZ homes were sold with major components such as roof, HVAC, plumbing, electrical, considered to be warrantied items. They must be in working order. It was a constant problem trying to sort out what was and what wasn't acceptable.

In 2017 we changed our contract to state that all homes are sold in the same condition as of the date of the contract. While inspections are allowed, all repairs are negotiable. It has greatly simplified our sales process. 

it's so funny, I had this conversation with sellers just today sitting at their kitchen table going over the listing agreement and contracts.

In California, it's As-Is As-Disclosed, meaning if you fail to tell the truth you know, it may cost you big time.

Good morning Margaret. Buyers should pay close attention to the "as-is" language in the contract. It differs from boilerplate to boilerplate. If in doubt consult an attorney. The same holds true for a seller, especially if the buyer has a right to inspect. Enjoy your day! 

I have sold properties "As Is."  However, I firmly suggest that any homebuyer who agrees to such a sale, have a home inspection, and all other relevant inspections performed by licensed professionals.  They need to understand what they are acquiring.

Margaret here in AZ our contract is now as is  and that simply means as is the day of the contract - but it doesn't have the clauses that your state has in their contract which is truly AS IS no inspections period.  Buyers have the right to inspections and to negoiatiate with sellers on repairs.

I know I have been trained to really see that AS IS is only as good as the AS OF date in our Northern VA contract.  The language of the contract must really be understood when you get into AS IS sales.

Margaret in California "as is" really means that it is a discourager to try to negotiate, now depending if it is a buyer's or a seller's market "as is" can be interpreted differently.. once the inspection is done buyers might hold their hands out and try a reduction... the answer is simple it depends on the seller how strong do they want to sell to this buyer....Endre

Hello Margaret - this post underscores(once again)the importance of knowing your local market as well as being very aware of your paperwork/ documents.

Margaret, It may have lost me a few when I was working with buyers but I never put as is in the contract. I did zero repairs subject to inspection so as to protect my buyers from disaster.