Buying "AS IS" - What does that truly mean

**spdblondie** · 08-18-2009, 04:55 AM

We had someone negotiate a deal with us and offered to purchase the home "as is" - but they are conducting inspections. What does this truly mean? Is there a way for them to "back out" of the contract even though we have one that says "AS IS CONDITION"

Everyone seems to have a new outlook on the inspection process. Personally, I believe in them 100% and would never purchase a home without them, BUT this buyer made the offer "as is" not us.

What should we anticipate?

Thanks.

Sandy

**Greg** · 08-18-2009, 05:13 AM

It depends on how your contract is worded. Sometimes "as is" means they are buying the house regardless of it's condition and sometimes it means they won't ask for any repairs but still have the option of walking away if the house has problems.

Talk to your agent about how it is worded.

**spdblondie** · 08-18-2009, 06:33 AM

Thank you Greg. Just for others info, I am going to insert the info written on the contract.

COUNTER OFFER ADDENDUM

Base Contract is changed as follows:

Sales price to be $143,000. Buyer will have a home inspection conducted in 6 days from accepted and signed offer by the buyer and seller. Seller is selling as is and will make no repairs. Buyer will close on 09-14-2009 in the am hours and take possession on 09-15-2009.

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So Greg and others what are your thoughts? Others please share your input.

Thanks!

Sandy

**wolfneyetna** · 08-18-2009, 11:53 AM

Wow is that the whole contract? The wording seems pretty informal, from my experience.

There's nothing in that wording that would allow the buyer to withdraw from the contract if he didn't like the inspection results. Are there other contingencies in the contract? For instance, can he withdraw if he can't get a loan?

I recommend that every buyer get an inspection - even with "as-is" homes, like REOs. It gives them information about the house, so they can prioritize their repair work on the things that matter most.

**Sarasota Agent** · 08-19-2009, 08:52 AM

Typically in Florida, "As-is" is "As-is with right to inspect." Meaning the seller will not make any repairs to the property. The buyer may have a professional inspection and void the contract if the property is not deemed acceptable.

**tucsonhomes** · 08-22-2009, 05:11 PM

Hopefully, as is means that the purpose of the inspection is for the buyers to be able to make a knowedgeable decision about what they are getting into.

The inspection is basically a go or no go point in the transaction.

**spdblondie** · 08-24-2009, 10:18 AM

Thanks to all who replied. What occurred....

The inspections were completed and a small leak was detected around a toilet wax ring, nothing else was found.

Indeed we did find a small leak and immediately fixed it (and a cheap fix too) the following day after inspections.

Two days later, reinspection was conducted - all found to be just fine and they signed a "as-is" document, indicating they were happy with the findings are are taking the home AS IS.

So, it is true, the inspections were just to ensure them nothing of major cost was wrong with the home. It worked out for everyone involved - she got a great price on a home, and we were please with the price we received in turn.

Thanks for all the info!

Sandy in KC