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How to sell a home "As Is"?

  • August 11 2013 - Gray Court
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Answers (23)

There are many real estate contracts which can be used in a transaction; one of which is the "as is" contract.  I would suggest working with a professional Realtor in order to draft the correct contracts/disclosures in order to protect yourself from any future litigation should something not be disclosed correctly. 
  • August 25 2013
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As - Is properties are a bit of a red flag - I always wonder 'what are they hiding' ? Not a great 'marketing' approach.
  • August 23 2013
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Yeah, that makes sense.

It's nice to know how things are done in other parts of the country, blubx3. Thank you.
  • August 22 2013
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Profile picture for blub blub blub
Let me answer it this way.  On my last 10 buyer transactions, 3 of them were as-is.  All 3 of those buyers signed the as-is clause as it's required when purchasing an as-is property.

Around here, as-is purchases are increasing.  This is probably due to all the short sales and foreclosed properties.  Most as-is purchasers are investors.  If the reports come back too bad, then they usually walk.

I won't show as-is properties to buyers that can't afford to make the neccessary repairs.  It's too high a gamble if the funds are tight or not there.  I also won't show as-is properties to buyers that think that they are going to ask for the repairs anyway.  It's made perfectly clear from the beging that the seller is not going to make the repairs or provide any credits. 

Also, if they are foreclosed properties and the buyer tries to ask for repair credits, they most likely won't have their offer accepted.
  • August 22 2013
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Well, in your practice, for example.
  • August 21 2013
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Profile picture for blub blub blub
Hmmm. About what percentage do you think, blubx3, use the "as-is" box?

If you are asking how many as-is sales to regular sales, I have no idea. 

But if the sale is an as-is sale, then it's required that both seller and buyer initial that paragraph.  So in that case, the anwer would be 100%.
  • August 21 2013
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Profile picture for sunnyview
As is means different things in different states. You need to be sure that you meet your state requirements for required disclosures. However, selling as is in most states still does not exclude you from disclosing failing to known defects.

Your best bet when selling as is is to ask a professional about the disclosures, be honest about the defects that you know about and price the property according to the extra risk that the buyer assumes in a sale with limited disclosure/owner knowledge.
  • August 18 2013
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Hmmm. About what percentage do you think, blubx3, use the "as-is" box?
  • August 18 2013
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Profile picture for blub blub blub
Usually, around here, when a seller lists a house in As-Is condition, it's to let perspective buyers know that they either are not going to make any repairs or in many cases, can't afford to make any repairs.

The inspection is really for the buyers knowledge of what really is wrong with the house.  Once they have a better idea, it allows them to back out of the deal if the repairs are more than they thought.

The house should have been priced in accordance with what repairs need to be made.  The buyer can always ask the seller to lower the purchase price if the repairs are higher than expected.  Many times, however, the buyer just kills the deal if the repairs are too much.

SoCal,

Any seller can refuse to make repairs or give credits.  The difference between a regular sale and an As-Is, is the mindset of the offer.

As you said, buyers shouldn't expect to renegotiate their offer based on any repair issues with an As-Is, where as they can and do with a regular sale.

As-Is clauses are to make it perfectly clear from the beginning as to what you are getting into.
  • August 18 2013
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That's interesting, blubx3. So, I think the house is in good shape, after the inspection it turns out that I'm wrong, so it's take it or leave it?

It is different here. And almost always, the negotiation is a dollar value. We'll often see a request for the seller to have the furnace "serviced," but other than that, buyers seem to want to hire their own repair people.
  • August 17 2013
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Profile picture for SoCal Engr
Dumb consumer question...

Isn't any "AS IS" clause really just a "short cut" for the seller (i.e., don't bother offering if you plan to negotiate repairs) and a "courtesy" to the buyer (don't bother offering unless you're willing to do repairs)?

As in...
-- Can't the seller always refuse requests for repairs, of any kind?

So, while some houses cannot be financed in "as is" condition, that's a choice the seller makes (or, may be "forced into")?
  • August 17 2013
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Profile picture for blub blub blub
Sorry Mack.  I thought I responded to your question, but looks like it didn't post.

Since our contract has the As-Is clause built right into it, most buyers don't try and come back after the inspection to ask for credits or repairs. 

Occasionally a buyer will try, but the sellers usually just tell them to take a hike.  If the seller wants to lower the price or something, then that's on them.

It's pretty clear from the time of the offer that the seller is not paying or making repairs and that the buyer won't get far by asking for them.
  • August 17 2013
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Profile picture for JoshBarnettREIB
Just say the home is offered AS IS.  
  • August 11 2013
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Thanks, blubx3. So, in your experience, what percentage of "as-is" deals come back after inspection for renegotiation?
  • August 11 2013
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Profile picture for blub blub blub
Mack in Illinois we have an "As-Is" clause built right into the contract.  If the seller is selling the property As-Is, then the buyer needs to initial that paragraph when putting in their offer.  They are still allowed to do a home inspection and can withdraw their offer if the inspection goes poorly, but they can not come back to the seller at a later date for repairs or credits.

  • August 11 2013
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Thanks, Mark; I like to find out how people do things around the country, so that when they come to Seattle, I have a better sense of how they're used to doing real estate.

  • August 11 2013
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Mack, if it is an AS-IS sale and the seller is not going to make any repairs or price concessions from the buyers inspections, then it is best that the buyer is made completely aware of this in my opinion. For both CYA and complete disclosure, I would add this to the contract to protect my seller client's interests. 

Also, stating it is an AS-IS sale on the SC Residential Property Disclosure for additional CYA isn't a bad idea.

Is this overkill or a waste of ink?

Maybe.

Ink is cheap. Lawsuits and attorney are not.

A new PSA from SCR came out this year for SC that does have some BIG changes to the Repair/Inspection portion of the contract.

Again, for something as important as buying/selling real estate, asking questions on the internet is not always the best option. Sound advice from a LOCAL real estate attorney and/or licensed experienced agent is what I suggest.





  • August 11 2013
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Mark, Mark, I'm asking you ABOUT the customs in SC! Is it common to write in, "As-Is" on contracts?

Here, it wouldn't CA(anyone's)A. There's nothing in the contract that obligates the seller to do any work, and that kinda covers it.
  • August 11 2013
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Mack, it is never a waste of ink to CYA. And as you said, you are not familiar with the different customs of South Carolina.
  • August 11 2013
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And, Mark, what's the advantage in doing that?

Here where I practice, at least, that would be a waste of ink. It's always an "as-is" sale unless the seller agrees to do some work, and unless it's a lender-required work order, my advice to my buyer is to negotiate the price and hire your own workers.

But - I know that there are different customs throughout this great land, so I'm interested in how you do things in sunny SC!
  • August 11 2013
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VERY important addition to what wetdawgs said:

The sale contract (also known as Purchase Sale Agreement in some areas) needs to state it is an AS-IS sale.

I strongly suggest that you either contact a real estate attorney or local experienced licensed real estate agent to assist you when buying or selling real estate. Relying upon the answers/information you get online may NOT be all the help you need.

No legal advice given or intended. Also I am not create an agent-client relationship with you by responding to this question.
  • August 11 2013
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Profile picture for user757356
Thanks, that's what i thought, just wanted to be sure!
  • August 11 2013
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Profile picture for wetdawgs
Simply state "as is" in the advertising and price accordingly.   Plan on buyers expecting a substantial discount depending on the issues with the home. Buyers still may request an inspection.

The seller is still responsible for filling out property disclosures to meet state laws. 
  • August 11 2013
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