"AS IS," ahuh, sure

Mortgage and Lending with Christensen Financial Mortgage 385907

So I'm not a listing agent, and I'm not sure what the motivation is to say


when listing a property, but if I was a selling agent, or a buyer, I don't think I'd pay much attention to that, unless there are major issues.

I'd really like to see some data on how many properties listed "AS IS" actually had work completed on them, in order to close. I don't imagine that it exists, but it might be interesting.

Here's two issues I see that are problematic to completing an AS IS sale without doing any repairs.

the Home Inspection;

contracts usually allow buyers to have a "satisfactory" home inspection, or they may negate the contract. To my knowledge there are no industry guidelines, as to what is or isn't considered satisfactory. It's soley the buyers discretion.

since on the average they have up to 10 days to have the inspection done, the property is off the market for that time. Based on the Inspection the buyers may decide to go forward with the property "AS IS," request ceratin repairs, or negate the contract.

But, to my knowledge and correct me if I'm wrong, they are not required to go forward even though the property was listed AS IS.

It seems as though these are contradictory provisions of the contract. Shouldn't the ability of the buyer to negate the contract be disallowed, if the contract was signed as is.

Financial Contingencies;

I'm a mortgage lender, so please understand where this comment is coming from.

If you make a contract subject to FHA, VA, USDA, or any type of financing, my contingency trumps your "AS IS." AS IS now means, whatever the guidelines call for, and the lender is going to impose their will.

They're not closing, without getting their way.

So, once again unless there are major issues, where we all know that essentially there will not be financing available, what is an AS IS contract? I, personally, don't think the buyer, and possibly the selling agent, pay much attention to that provision. At least I'm not seeing it.

So the contract says it's AS IS

AHUH, sure (ask for the repairs)



Comments (8)

Mona Gersky
MoonDancer Realty, Dillsboro,NC - Sylva, NC
GRI,IMSD-Taking the mystery out of real estate.

Jay, I am a listing agent and marketing a house "as is" believe it or not can be a very effective marketing tool.  Sure, the seller in the end might make some concessions on repairs but "as is" helps weed out people who might be able to afford the house but not repair the overall condition.  Lenders should appreciate seeing those words in the listing.

Aug 19, 2012 09:48 PM
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Jay, I've listed and sold some homes " as is" for a variety of reasons, like :  (a) it's a tear down or major fixer uppers(b) sellers are in another state, and property is priced based on condition ( sometimes I have a home inspection done before listing it) (c) property is in a trust or estate(d) sellers are elderly and in assisted living or nursing home. (e) sellers have no money to pay for repairs and/or are netting close to $0.00 on the sale. Potential buyers can do all the inspections they want, then they can decide to cancel the contract or proceed to settlement. Some buyers will do a FHA 203K in some situations.

Aug 19, 2012 09:57 PM
Dick and Dixie Sells
Sells Real Estate, LLC - Trinity, FL
Realtors, Tampa Bay Florida Homes For Sale

HI JAY  "AS IS" can give different meanings to different readers. Some think - boy this must need alot of work, and others will think, ok it is priced low and the seller feels confident that there are no major issues and just doesn't want to be nickeled and dimeed over a home inspection.  I see both sides.  A home inspection is a necessity. PERIOD. Then after that the negotiations can begin over or all bets are off.   Looking at it from an FHA or VA financing direction, you are so right. If repairs are needed for these loans, if they are not done, well it just isn't going to close. Period.

Aug 19, 2012 10:02 PM
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Hello Jay. I think your points are well taken but I disagree with your conclusions. I have a seller without funds or capacity and asking is useless.

Aug 19, 2012 10:05 PM
Jay Beckingham
Christensen Financial Mortgage - Port St Lucie, FL
Seniors ROCK!


tear downs were big here for awhile, and with todays market could make a comeback. some of the older homes on the waterfront have more value for their location.


I can understand, and remember I'm a lender and that's where my opinions are formulated. To me, it doesn't mean as much as it might to you.


good points. i saw the major repairs, but once again a lender might not be involved, unless it's a 203k, in which case repairs are addressed by the buyer. We've got some of the rest here in Southwest Florida; estates, yup; no $$$, underwater, yup. so i understand that part.

Dick & Dixie,

I agree. Personally if I liked a home I'd want to see it regardless, and then we'd take it from there.


we have plenty of that also.

thanks everyone,


Aug 19, 2012 10:20 PM
Bruce Walter
Keller Williams Realty Lafayette/West Lafayette, Indiana - West Lafayette, IN

Jay, our board contract allows the buyer to walk if there are safety issues and material defects that would adversely impact the property if not repaired by the seller.  Of course the fun comes in as the buyer and seller have a whole different view of what is a material defect.  Most sellers have no idea what safety issues and material defects there are until the home inspection is performed.

Aug 20, 2012 12:47 PM
Jay Beckingham
Christensen Financial Mortgage - Port St Lucie, FL
Seniors ROCK!


If I'm the seller and there are either safety issues or material defects i will either repair (if possible) or disclose. Does "as is" protect them against potential liability when the problems are known?



Aug 20, 2012 09:39 PM