AS-IS...do you REALLY mean that?

By
Real Estate Agent with Coldwell Banker Rox Realty

AS-IS...you've seen the form.  We include it in many transactions - lender owned, short sales and even in regular sales particularly investor flips.  But what does it REALLY mean?house

Well...Google found many references:

From Cyberhomes: said of property offered for sale in its present condition with no guarantees as to quality and no promise of repair or fix-up by the seller; property is purchased in exactly the condition in which it is found.

From Wikipedia: As is is a legal term used to disclaim some implied warranties for an item being sold. Certain types of implied warranties must be specifically disclaimed, such as the implied warranty of title.  "As is" denotes that the seller is selling, and the buyer is buying an item in whatever condition it presently exists, and that the buyer is accepting the item "with all faults", whether or not immediately apparent. This is the classic "buyer beware" situation, where the careful buyer should take the time to examine the item before accepting it, or obtain expert advice.

 

What does this mean for your buyer or seller?  It means...what they want it to mean at that moment!  For me, it depends on who I am representing at that time. 

When I represent the buyer, it is a form the listing agent/seller has included in the purchase contract requirements.  IF during our inspection, we find something that matters to the buyer I present it to the seller (be it a lender or private owner) for repairs.  Sometimes they will remedy it - and sometimes they come back with no, the property is sold AS-IS.  Then the decision is for the buyer to accept doing the repairs or canceling the offer.  As a buyers agent, it's worth asking.  Your buyers will love you if you get it accomplished.

When I represent the seller...I wait with baited breathe until the inspection period has passed! "WHAT DO YOU MEAN THEY WANT REPAIRS????  Didn't they sign an AS-IS???"   Uh, yes they did.  They'd like the following repairs authorized - will you do them or risk losing the sale?  Sometimes they are justified and sometimes they are just plain nit-picky.  "The door weatherstripping is worn and needs replaced or the AC filter is dirty and needs replacement"  REALLY???  Are you serious?

And sometimes, the seller needs to be reasonable and do the repairs to sell the property.  Case in point - a lender owned property with the dreaded "T" word (wood destroying organisms).  I wrote in the contract for the seller to treat.  Nope.  They countered back they would not.  Uhhh  HELLO - do you want to sell the property or not?  Depending on the type of financing, this could be a condition of the loan.  If you agree to treat, the property is no longer your responsibility, it has new owners and the neighborhood has one less vacant home.  Leave it vacant and you risk vandalism and theft.  Weigh the bottom line!

Either way, AS-IS really isn't!

 

 

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Groups:
Arizona Homes
Arizona Real Estate
It's A Buyer's Market
The Optimist
Tags:
casa grande homes
asis
arizona real estate

Spam prevention
Show All Comments
Rainer
5,708
Patti Biggar
Fonville Morisey Realty - A Long & Foster Company - Cary, NC

You've made some good points! As a buyers agent I always try to get the sellers to make repairs even on as-is properties. Often, the seller realizes it's worth the investment in order to gain on the return - bird in hand, so to say. Thanks for sharing!

Mar 05, 2011 05:50 AM #1
Rainer
125,171
Sandra White
John L Scott Real Estate - Port Townsend, WA
Experienced Residential Resale Broker

In a perfect world, buyer's would make the inspection before they write the offer, so all concerned would be spared all the renogotiation and hard feelings.  More complete and honest disclosures would help too. 

Mar 05, 2011 05:51 AM #2
Rainmaker
228,996
Coldwell Banker Camelot Realty
Coldwell Banker Camelot Realty - Mount Dora, FL
Homes for Sale Mount Dora Realtor

AS / IS sets the tone of the seller's intentions.

 

BTW,

I like the picture in your BLOG.

Good Luck in your business...

Mar 05, 2011 05:59 AM #3
Rainmaker
6,207
Social Media Marketing Companies
Seattle, WA

I would agree with you.  Its really "as is" to whatever the two parties agree on.  In the end if there is a unhappy party then the "as is" could just as easily mean you can keep your home or offer "as is".

Mar 05, 2011 06:00 AM #4
Rainer
53,785
Bea Lueck
Coldwell Banker Rox Realty - Casa Grande, AZ

@ Ray and Karen - Small world!  I went to High School in Eustis.  GO PANTHERS!

Mar 05, 2011 11:59 AM #5
Rainmaker
432,131
Frances C. Rokicki
Fran Rokicki Realty, LLC - Bolton, CT
Broker-Mentor,CRS

Bea, I always advise my clients to write, in quotes, "as is, where is, without warranty or guarantee of any kind."  Just a bit more, cover for the topic.

Mar 14, 2011 08:05 AM #6
Rainmaker
536,206
Kenneth Cole
Weichert Realtors Appleseed Group, 2043 Richmond Ave. S.I.N.Y. 10314. office phone 718-698-9797, Appleseedhomes.com... - Staten Island, NY
NYS Licensed Real Estate Salesperson

Bea;  "as is", I love it.  So do the attorneys

Mar 24, 2011 12:37 AM #7
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
53,785

Bea Lueck

Ask me a question
*
*
*
*