The Misunderstood Listing

By
Real Estate Broker/Owner with Buy and Sell Oklahoma LLC 172320

Buyer is thrilled to discover a listing with an open floor plan, 3 bathrooms (you should see the soaker tub in the master), large covered patio, and an acre lot for her family to enjoy.  "Wait a minute...As-Is Condition?"  "But the description and photos look similar to other homes we've looked at in the price range.  Why is this home listed in as-is condition?" 

 

You know the next question that follows...What is wrong with it?

 

When I inquire about similar "as-is condition" listings, the agents have stated the seller will not be able to do many (if any) repairs.  That doesn't sound all that bad, right?  How many sellers would prefer to do little or no repairs before closing?

 

Unfortunately, the described condition raises suspicion.

 

It is completely understandable to disclose the seller's intent regarding repairs.  However, an "as-is condition" category will likely send a "buyer beware" message even if the property disclosure reflects little or no defects.

 

 How many buyers will look elsewhere before considering

the misunderstood listing?

 

Repairs are negotiable - First impressions (usually) are not.

 

 

 

Posted by

 

Alesha A. Wilson, M.Ed. | Broker/Owner

Buy and Sell Oklahoma LLC
405.837.6511

 

 

Comments (29)

Alesha A. Wilson, M.Ed.
Buy and Sell Oklahoma LLC - Oklahoma City, OK
Buy and Sell Real Estate with Confidence

I am so glad you shared your viewpoints from California and Florida - Endre Barath, Jr. and Gabe Sanders.   If anyone (from Oklahoma) is moving to the east or west coast, I'm pretty sure you guys can educate them on how it's done (:
Thank you for sharing!

Mar 07, 2018 02:44 PM
Alesha A. Wilson, M.Ed.
Buy and Sell Oklahoma LLC - Oklahoma City, OK
Buy and Sell Real Estate with Confidence

Sharon Tara,  Thank you so much for the encouragement, compliment, and recommendation!  You made my day 
I am also thankful to gain the insight from other states!  Thank you again.

Mar 07, 2018 02:48 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Alesha, this is a valid comment, and those words do raise a red flag.  What are they hiding.   Great post.

Mar 08, 2018 06:59 AM
Alesha A. Wilson, M.Ed.

Thank you Joan Cox!  What are they hiding indeed.  Sometimes nothing.  A couple of times it appeared to be the agents suggestion over the sellers wishes. 

Mar 09, 2018 08:49 AM
Pat Starnes-Front Gate Realty
Front Gate Real Estate - Brandon, MS
601-991-2900 Office; 601-278-4513 Cell

As Is properties may indicate something is wrong or that the seller cannot afford to make repairs. And sometimes it indicates an opportunity for the buyer. Whatever the case may be, I love you chose "The Misunderstood Listing" as your title. And the graphic is awesome.

Mar 08, 2018 07:20 AM
Alesha A. Wilson, M.Ed.

You are so right Pat Starnes, Brandon, MS.  It can indeed be an opportunity for a buyer.  Thank you for stopping by and for your encouraging words!  

Mar 09, 2018 08:51 AM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is an excellent perspective to share with home sellers and their listing agents.

Mar 09, 2018 06:01 AM
Alesha A. Wilson, M.Ed.

Good morning Roy Kelley!  Thank you 
When I started writing the post, I had called about a similar listing and when I reported to the buyer - they decided to pass on even taking a look.  Have a wonderful Friday!

Mar 09, 2018 08:55 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hi Alesha

Yes "as is" often raises questions about the condition the home might be in, so of course buyers must do their due diligence, as they always should. Our CA contract specifies that homes are sold "as is" although that is subject to the buyer property investigation. And it may also be specifically stated in the listing. Despite that, of course, buyers have the right to request repairs, which are all negotiable.

Jeff

Mar 10, 2018 11:28 AM
Alesha A. Wilson, M.Ed.

Hi Jeff Dowler 


Thank you for sharing experiencs from the CA    Several have commented on how the contracts are "as-is" in their state - think I'm going to check some of them out to feed my curiosity (:  Thank you for stopping by!

Mar 12, 2018 10:28 AM
Nick Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Tredyffrin Easttown Realtor, Philly Main Line

Our descriptions and the words we use are important. It is easy to be misunderstood so we have to make sure we are not and we don't harm our clients. Good post.

Mar 10, 2018 01:20 PM
Alesha A. Wilson, M.Ed.

Thank you  Nick & Trudy Vandekar, 610-203-4543 
I didn't necessarily put the words "don't want to harm our clients" - but that is exactly what prompted me to write the post.  Thank you for stopping by!

Mar 12, 2018 10:12 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, eXp Realty - Kalispell, MT
Helping your Montana dreams take root

I think you are right. If the listing says, "as is," the first thought to come to everyone's mind is, "Why?"

Mar 10, 2018 01:23 PM
Hannah Williams
HomeStarr Realty - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-820-3376

Alesha A. Wilson, M.Ed., MRP  This is true but not always true as to condition

Mar 10, 2018 02:09 PM
Fred Griffin Tallahassee Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

 Hi, Alesha. 

     Almost all houses listed in the State of Florida are offered "As Is, subject to inspections".  Florida Realtors form AS-IS 4 is the standard contract used.

   The reason is that the alternative "Seller Warrants" contract can impose serious financial liability upon a Seller.  

   The good news is that [most] Florida Realtors know how to explain to a Buyer in advance that they will have a contingency period to get inspections to their satisfaction.  Based upon the Inspection reports, they can either ask for repairs, walk away, or buy the house truly "As-Is".

Mar 10, 2018 06:27 PM
Alesha A. Wilson, M.Ed.

Hi Fred Griffin 


Thank you for sharing experiencs from the State of Florida    I find it interesting how the states have different contracts.  I am going to check some of them out (:


Thank you for stopping by!

Mar 12, 2018 10:25 AM
Margaret Goss
Baird & Warner Real Estate - Winnetka, IL
Chicago's North Shore & Winnetka Real Estate

"As is" is used here mostly for tear-down properties, homes that clearly need a lot of work, or short sales/foreclosures. For any other property, that term does indeed raise alarms.

Mar 11, 2018 03:37 PM
Alesha A. Wilson, M.Ed.

For buyers seeking a more "move in ready" home - they would rather steer clear from the "as-is" and the added risk of money loss from the home inspections.
Thank you for stopping by Margaret Goss

Mar 12, 2018 10:39 AM
John Wiley
Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

When putting a listing in the MLS it is so critical to be careful to choose the best wording.

Think from the buyers side and what they will pick up from our descriptions and terms.

Thanks for a great post.

Mar 15, 2018 09:29 AM
Alesha A. Wilson, M.Ed.
Buy and Sell Oklahoma LLC - Oklahoma City, OK
Buy and Sell Real Estate with Confidence

Good morning John Wiley,  That's a great idea to "think from the buyers side."  We can also have those discussions with our seller's - encouraging them to "think from the buyers side."  Thank you for sharing and offering words of encouragement 

Mar 16, 2018 08:18 AM
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

'As Is' does strike fear in consumers' hearts, doesn't it?  LOL
I think the term 'As Is' is also quite often misunderstood.
'As Is' doesn't mean much, really. It's in our (AZ) Contracts, and it's been in CA Contracts for a long time.
And NO ONE renegotiates contracts more than our fair neighbors to the west! 
'As Is' means the seller warranties ONLY that the home will be substantially in the same condition as at time of purchase.
'As Is' doesn't preclude a buyer from asking for repairs. 
Over the years, I've seen many, MANY deals that were contractually 'As Is' where buyer requested and seller performed multiple, sometimes quite pricey repairs.
Sellers often don't know what they do not know, and a property inspection may open their eyes wide. They may begin to think that if THEY were the buyer, they might want this stuff done too! 
Even REO banks will deal sometimes . . . we just had one replace a septic system on an 'As Is' deal! 
Does it make more sense to save or kill the deal is often the question. And that has a million answers.

Mar 16, 2018 12:26 PM
JL Boney, III
Coldwell Banker - Columbia, SC
Columbia, SC Real Estate

I have noticed that more often than not, "as is" seems to raise eyebrows and make buyers question the phrase. I had to deal with it a lot years ago when most of my business foreclosures.

Mar 16, 2018 12:37 PM
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

This is so true, Alesha! Indeed, just those two little words can scare off many buyers - it raises suspicion and they often just can't get past that.

Another great post, Alesha!

Mar 16, 2018 07:51 PM
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

It's probably easier to sell an As Is in a sellers market these days, but it does raise some eyebrows!  

Mar 18, 2018 08:47 PM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

 

I like to use this phrase if it is truly "as is" "Price reflects the AS IS condition.'

Apr 30, 2018 06:04 PM
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Alesha. I love this title and the substance you share is there too.

May 11, 2018 01:26 AM
Alesha A. Wilson, M.Ed.
Buy and Sell Oklahoma LLC - Oklahoma City, OK
Buy and Sell Real Estate with Confidence

Howdy Sheila Anderson   Thank you for the encouragement and for stopping by!

May 14, 2018 12:19 PM