"As is" declares the seller's intention not to fix anything. The buyer still has the right to have a regular home inspection for his own information, but the seller will not be responsible for any recommended repairs identified in the inspection.

Hi Mike,

Whats the point of your question? Basically all this wording does is to fill in $0.00 in the "repairs should not exceed" blank of may inspection addenda. Given that the seller of a short sale, by definition has little or no money to make repairs, of course the buyer should be able to walk away at their discretion if something is found.

The one thing that makes a short sale a lot different than an REO is that the seller has knowledge of the property and must do a seller's disclosure. If their disclosure is honest and strightforward, then surprises should be rare and AS-IS will be pretty clear from the outset. If they are trying to hide something, then suddenly we see the need for clauses like this.

Let's face it there are many reasons that so few short sales actually go through and this is one of them.

Regards, Mark

I mean...that paragraph is standard...we'll take your bid, you have every right to look it over thoroughly...just understand we ain't fixin' NOTHIN!

U Find Somethin you don't like, let us know, you'll get your money back, no harm, no foul. You go your way and we'll sell it to the man who doesn't have a problem with it. Just understand, should you choose to move forward, you on your own.

That's Foreclosures, not just specific to short-sales. Every REO has that terminology in the 'addendum'.

My take is 'As-Is' = Don't ask us to fix anything. You need to inspect it because I'll be darned if I'm going to be liable for what becomes different in six months because you decided you felt comfortable 'trusting your eyes' and didn't know what you were looking at.

Aren't most contracts and modifications to those contracts the results of litigation? Somebody got sued somewhere about that very subject...paragraph 11 :-)

Exactly.... just because it is 'AS-IS" doesn't mean you can't have an inspection and terminate based on that inspection if the repairs are high. I have also SOLD short sales where the inspection has been uggg and even thou no repairs, the bank has given as much as 10k off the final price. So all is good!

As-Is with right to inspect is not an oxymoron.

It's an indication that the seller has no intention of addressing any issues that you might find.... but please, go ahead and do your due diligence, and decide if you want to go forward knowing whatever you've found.

No oxymoron there.

Hi Mike,

With all the short sales in CA market, the reason being AS-IS....means: usually, the lender will pay for a termite inspection and sometimes some repairs...however; the owners are not making ONE PENNY....so, to ask them to do repairs is understandly unacceptable.

Usually, I have one of my contractors give bids for work, (whatever comes up on the inspection report that is health and safety issues and not cosmetic). The buyer's review the quote, talk with my contractor and usually end up scheduling his help after close of escrow. If its a total health and safety and is a repair that is not outrageous, I try and get the lender to help (get a revised hud-1) from escrow and send it to the bank, they usually pay their contractors to do, so escrow/deal will close.

Good point Mike...Bernadette

Mike,

I feel that although the contract is written "AS-IS", not ALL problems or issues with the short sale or auction home are readily observable to the general public and certainly agents as well. With the 'right to inspect', at least if something that is totally unacceptable is revealed through inspection, my Buyer can walk away. In my eyes, it is"as-is" only to the point of what is readily observable within reason. We can all tell if a roof is getting to the end of it's life or an AC unit is rusting and not holding up well, but we cannot tell if the foundation is cracking or there are septic tank/plumbing issues for example. I do not want my buyers purchasing an property with hidden defects that may show up days, weeks or months later. It is for their protection.

Holly Hayes