What should a buyer expect when a property is sold "As-Is" in Sacramento?

Real Estate Agent with Charter~Home #01419060

What should a buyer expect when a property is sold "As-Is" in Sacramento?

The technical meaning of as-is in California is in reference to 'no warranty' from the seller after close of escrow.  

In fact, the California Residential Purchase Agreement (RPA) is incorproated into all contracts by default...

9. CONDITION OF PROPERTY: Unless otherwise agreed: (i) the Property is sold (a) in its PRESENT physical ("as-is") condition as of the date of

Acceptance and (b) subject to Buyer’s Investigation rights; (ii) the Property, including pool, spa, landscaping and grounds, is to be maintained in

substantially the same condition as on the date of Acceptance; and (iii) all debris and personal property not included in the sale shall be removed by Seller by Close Of Escrow.


Sellers often promote properties 'as-is' suggesting buyers inspect carefully and offer based on no repairs.  It has no legal significance regarding a buyers ability to inspect, request repairs or cancel.  The as-is clause is always subject to inspection.

The reality for my clients is that no buyer will invest the time and money to completely inspect an Sacramento homes for sale before they have an accepted contract.  Then plenty of inspections and requests for repairs as needed.

I do, however, caution buyers that the seller has indicated they do not want to make repairs and to write offers accordingly.  Don't be surprised when a seller says "no" to a reasonable request. 

REO's are a good example... I prepare my buyers not to expect the bank to agree to fix damage that is obvious on an initial walkthrough.  You can ask a seller to fix anything, but if requests are unreasonable, a buyer will likely be put on a short leash from that point on.

I had a client (buyer) recently submit what I believed was an unreasonable request for repairs on a short sale.  Of course, I did my best to explain my position and what would likely happen.  He was getting a great buy (I'm surprised the bank approved) and was asking the owners to paint and patch a variety of things around the home, including upgrading a very large carpeted master bath with tile.  The home inspector said bathrooms really should be tiled and while I agree, I wouldn't expect a short seller losing their home to pay for the buyer bathroom upgrades.  The sellers who may well have done a variety of smaller items, were offended and ran an angry escrow from then on.  This included a zero tolerance for the buyer... notice to perform, demand to close escrow.  No slack whatsoever.

Repairs always remain negotiable until the right is released.  But good judgment under the circumstances will get a better home for less money.




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Edward & Celia Maddox
The Celtic Connection Realty - Queen Creek, AZ

I provide client a disclosure that shows what to expect to pay for on Short Sales and Bank Owned homes.  AS-IS is pointed out in detail.

Feb 04, 2012 03:19 AM #1
Bob & Leilani Souza
Souza Realty 916.408.5500 - Roseville, CA
Greater Sacramento Area Homes, Land & Investments

Just wanted to stop by and let you know about an upcoming AR MeetUp in Roseville:

Sacramento Area ActiveRain MeetUp #3 - Roseville, CA - Friday, 4/20/12 (3pm)


Apr 14, 2012 04:00 PM #2
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Bill Joyce

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