What does "As Is" Mean, and of course, there's "Where Is"

What does "As Is" Mean, and of course, there's "Where Is"

"As is" clauses in a sale contract mean that seller is not making guarantees as to a property's condition.  It also means they are not planning to make any repairs. This may scare away many buyers, who assume, rightly or wrongly, that something major is wrong with the house.

I'm my experiences representing buyers for Bank Owned properties, "As Is" does not always mean "As Is".  Most of the buyers are getting a loan, which means that their lender may require some repairs before releasing funds for the buyer's loan.  The key here is "Health and Safety".  Example, if there is a hole in the floor, or the home has some structural problems, those can be classified as Health and Safety issues.  The owner of the property, more often than not will agree to fix those problems in order to complete the transaction.  The exception to this rule is a cash offer (so no lender required repairs), a backup cash offer (they deny the request and move on to the cash offer waiting in backup).  It usually a function of how much the repair is, and how long the next offer will take to close, thus costing the seller more money.

Buying "as is" means that you are agreeing to shoulder the costs for any obvious defects, like scratched hardwood flooring, missing or damaged screens, badly worn carpeting.   The seller would like you to sign a clause releasing your rights.  In Oregon, the standard Earnest Money agreement has a lender clause in it that only the buyer's lender can release.  Keep your eyes open, and sometimes hold your nose.  You should be able to get a home at below market price.

OK.  So...the silly "Where Is" statement.  I suppose if the home has slipped off it's foundation it is "Where Is".  Or in the case of a Manufactured home, the seller is not going to move it at all.  If anyone has run into a situation where this might actually apply, I'd like to hear about it.