Answers (11)
Best Answer
- Joseph Moore, "Joseph F Moore"
- Contributions:88
As-Is is what it says, but not exactly..It really means nothing. You were agreeing to purchase the property in AS-IS condition which basically means that the seller won't be making any repairs.
With that being said; You had the inspection and realzied there were hidden defects. The AS-IS means the seller is telling you upfront that they won't fix the issue, but it doesn't stop you from asking for a credit based on new findings.
If the seller won't look at a credit then walk away from the deal. They will put the home back on the market and you can offer lower this time....or they'll go onto the next offer and that person will have an inspection resulting in the same findings.
There is nothing wrong with asking for a credit. I've helped many clients purchase bank owned properties and have gotten credits out of inspection findings. It all depends on how bad they want to sell the home.
Use your inspection contingency to get the credit or get out of the deal. If you feel like your agent isn't assisting you properly then let them know. Being in the same office as the listing agent (Dual Agency) doesn't stop the fidicuary duty of your agent.
If your worried about the price and the repairs needed then walk away. There are other homes...
Best of Luck!
With that being said; You had the inspection and realzied there were hidden defects. The AS-IS means the seller is telling you upfront that they won't fix the issue, but it doesn't stop you from asking for a credit based on new findings.
If the seller won't look at a credit then walk away from the deal. They will put the home back on the market and you can offer lower this time....or they'll go onto the next offer and that person will have an inspection resulting in the same findings.
There is nothing wrong with asking for a credit. I've helped many clients purchase bank owned properties and have gotten credits out of inspection findings. It all depends on how bad they want to sell the home.
Use your inspection contingency to get the credit or get out of the deal. If you feel like your agent isn't assisting you properly then let them know. Being in the same office as the listing agent (Dual Agency) doesn't stop the fidicuary duty of your agent.
If your worried about the price and the repairs needed then walk away. There are other homes...
Best of Luck!
- John Stewart, "nwhome.us"
- Contributions:2566
Have you talked to the managing broker?
- Houston Metro Pro
- Contributions:2464
Mr. Domino,
That was kind of harsh in my opinion. Buyers are slammed with conficting information from the media, well-meaning friends and family, and anyone else who thinks they know the market. It was a valid question and one that many buyers (not just first time) have when buying a foreclosure. We have all seen the "exception to the rule" so there is no harm in his request. The fact that his agent is afraid of getting chewed out for simply asking sends up a few red flags. My buyers want to make a lot of requests that I don't always agree with, but at the end of the day, if I am their buyer rep, I am obligated to act on their behalf per their direction as long as it is not illegal, immoral or unethical. And if you think about it, all sales are "as-is" in that they are "as is" at that moment with the information that has been given. But that doesn't stop us from asking for repairs after the contract is executed.
That was kind of harsh in my opinion. Buyers are slammed with conficting information from the media, well-meaning friends and family, and anyone else who thinks they know the market. It was a valid question and one that many buyers (not just first time) have when buying a foreclosure. We have all seen the "exception to the rule" so there is no harm in his request. The fact that his agent is afraid of getting chewed out for simply asking sends up a few red flags. My buyers want to make a lot of requests that I don't always agree with, but at the end of the day, if I am their buyer rep, I am obligated to act on their behalf per their direction as long as it is not illegal, immoral or unethical. And if you think about it, all sales are "as-is" in that they are "as is" at that moment with the information that has been given. But that doesn't stop us from asking for repairs after the contract is executed.
- user87839905
- Contributions:2
Thanks for the replies. Ya, we are thinking its time to walk away. He sent us a sob story about how if he fights to submit our inspection response it will ruin his reputation within the office. He was already chewed out by the listing agent for even trying. I understand that the bank will not fix anything but there is a possibility of adjusting the final price. He told us going into this that we would be able to adjust if something comes up on the inspection. He was very misleading when it came to this deal.
- Joseph Domino, "ScottsdaleAZHomes"
- Contributions:310
What part of "AS-IS" did you not understand? You either accept AS-IS or you do not. By requesting repairs or compensation you are not purchasing AS-IS but "As you want it to be". Don't blame your agent. You made an offer based on AS-IS, now you want to change it. What if the inspection was clean and bank came back and asked for more money? Would you feel that they are justified? Probably not.
- Chris Pendleton Team, "Chris Pendleton Team"
- Contributions:152
I think you got a couple of good responses. Cindy makes an excellent point that it could be a pre-listing direction, but I would demand to know that. I would definately call the managing broker to get to the bottom of this.
I list foreclosures for a couple of banks. Every asset manager is different and their hot buttons are different. Buyers agent should have advised to base offer on a few surprises that could crop up in inspections. Banks won't do anything for nickle and dime type stuff, but rather issues that affect your ability to get a loan. Anything that you could observe during your viewing of the house in the pre-offer stage shouldn't become a inspection item. I have seen asset managers say NO - buyer's cancel and then come back a week later saying YES if your still interested. Can't really count on that - all market dependent.
I list foreclosures for a couple of banks. Every asset manager is different and their hot buttons are different. Buyers agent should have advised to base offer on a few surprises that could crop up in inspections. Banks won't do anything for nickle and dime type stuff, but rather issues that affect your ability to get a loan. Anything that you could observe during your viewing of the house in the pre-offer stage shouldn't become a inspection item. I have seen asset managers say NO - buyer's cancel and then come back a week later saying YES if your still interested. Can't really count on that - all market dependent.
- Houston Metro Pro
- Contributions:2464
The asset manager may have instructed the agent to refuse any inspection reports or requests for repairs. There are times when it is easier for the asset manager to give certain directives at the beginning of the listing instaed of being "bothered" by requests he will never consider. I've seen it happen on pricing as well. It isn't common, but it does happen.
- Brian Teyssier, "Brian Teyssier GRI"
- Contributions:1512
Thanks for posting your question on Zillow.com!
"As-is" is exactly that. Some sellers & banks tell the listing agents not to bring any requests for repairs or compensation to them. It almost does not matter if they submit your request or not.
This is one of the caveats of getting a great deal on a foreclosure.
Best of luck.
"As-is" is exactly that. Some sellers & banks tell the listing agents not to bring any requests for repairs or compensation to them. It almost does not matter if they submit your request or not.
This is one of the caveats of getting a great deal on a foreclosure.
Best of luck.
- Ryan Halset, ABR, "RyanHalset"
- Contributions:871
I like both of the previous responses:
Like John - I'd be curious to know what the managing broker says. A listing agent does have a responsibility to submit all offers. I would have your agent (who is supposed to be advocating for you despite office relations) encourage the listing agent to just turn it in, even if they already know that it's going to be a "no". If the seller says no or doesn't respond, then so be it. At that point you can walk away.
Like wetdawgs, depending on the seller (and contract) you are working with, the inspection may have simply been for peace of mind and not for re-opening negotiations (several banks specifically state this in the contract you sign - so you may want to double check).
The only time I've successfully been able to negotiate for the bank to do any work for a buyer is if something shows up on an appraisal that would keep us from getting financing. In that case, I have seen a bank agree to doing work to get to closing...but that has been rare.
Keep in mind that Rodent and Insulation issues in the Crawlspace are incredibly common in this area and can really add up (depending on the damage). I just had some clients get a quote for over $6k to remedy all of the rodent/insulation issues in a house.
Best of luck!
Ryan Halset
Realtor | Seattle, WA
Like John - I'd be curious to know what the managing broker says. A listing agent does have a responsibility to submit all offers. I would have your agent (who is supposed to be advocating for you despite office relations) encourage the listing agent to just turn it in, even if they already know that it's going to be a "no". If the seller says no or doesn't respond, then so be it. At that point you can walk away.
Like wetdawgs, depending on the seller (and contract) you are working with, the inspection may have simply been for peace of mind and not for re-opening negotiations (several banks specifically state this in the contract you sign - so you may want to double check).
The only time I've successfully been able to negotiate for the bank to do any work for a buyer is if something shows up on an appraisal that would keep us from getting financing. In that case, I have seen a bank agree to doing work to get to closing...but that has been rare.
Keep in mind that Rodent and Insulation issues in the Crawlspace are incredibly common in this area and can really add up (depending on the damage). I just had some clients get a quote for over $6k to remedy all of the rodent/insulation issues in a house.
Best of luck!
Ryan Halset
Realtor | Seattle, WA
- John Stewart, "nwhome.us"
- Contributions:2566
The managing broker of the office is the responsible party as a dual agent in the transaction. Take your concern to the principle managing broker and let us know what the response is.
- wetdawgs
- Contributions:39536
As the offer did not have an inspection contingency (I'm assuming as you say it was offered "as is"), the inspection was for your peace of mind not for opening negotiations. Therefore, it sounds like you can accept the results or move on.
It is a rare foreclosure that doesn't need some work, so if you are making offers on foreclosures make sure that is in your budget in addition to your offer price. Spend some time discussing expectations and what your purchase offer really means with your agent (in addition to reading all the words) before signing the bottom lines.
It is a rare foreclosure that doesn't need some work, so if you are making offers on foreclosures make sure that is in your budget in addition to your offer price. Spend some time discussing expectations and what your purchase offer really means with your agent (in addition to reading all the words) before signing the bottom lines.
Listing Agent Refused Inspection Response
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