Here is a post that may be helpful:
The Good, the Bad and the Ugly â€“ 3 CRITICAL Things To Know About Flips
The standard purchase contract form (RPA-CA) was modified many years ago and it clearly states at the top of page 4 paragraph 9 the following. "the property is sold in its PRESENT physical (as-is) condition as of the date of acceptance and subject to buyers investigation rights". You still have the right to inspect and investigate the place and if that turns up anything you don't like then you have options at that point. To ad an additional addendum to this language is redundant! But many agents and sellers are ignorant to this paragraph or they want to simply try to drive the point home that it will be futile to ask for any repairs or remedies after you have your inspections. Sadly they probably wont accept your offer unless you agree to their redundant addendum. If they already accepted your offer and they are just now presenting you with this addendum then you are not required to sign it. You already have your agreement in place. Keep in mind however that if you refuse and should you need a favor from the other side later on in the deal they might not be inclined to cooperate with you.
Read the addendum carefully and compare it to what is already found in the RPA-CA paragraph 9.. If the addendum is essentially the same then it is probably harmless to go ahead and sign it. Always consult with your agent or attorney first and dont take this response as legal advice.
The concern about flipped property is who is doing the flipping. I have seen many homes that have been flipped, some have been done very well and would do business with those sellers again, others I won;t even show their properties if I don't have to. With flipped properties and bad sellers is being concerned about how many corners they cut in order to get the job done.
A few good rules of thumb with flipped homes are...
1) You can not do too many inspections. Once a buyer gets the property inspection, if there is ANY indication that some sort of specialty inspection is recommended, do it! Some flippers use handymen supervised by someone who is licensed who works for either the selling broker or the owner. In these cases the contractors license is meaningless because whatever protections a licensed contractor law is intended to provide will be minimized but the sellers profit motive and back door control of that contractor.
2) Expect to redo some of the work the contractor did. There are many practices that a expert flipper knows that are both legal and meet contractors standard of care but are not "conventional" and meet any perceived top dollar standard that I know. Here is one example. In older homes, electrical wires are a mix of modern Romex and several older forms that include knob and tube. Grounding to plumbing and/or adding a grounding stake are all chinzy ways to meet code requirements. In flipped properties I see this all the time. A professional quality flip would have proper Romex and upgraded electrical but due to the current budget constraints of flippers this level of effort is seldom applied.
3) Don't pay Mercedes Prices for a Buick. In this low inventory market that is a tall order but given a choice between paying top dollar for new Ikea cabinets and pergo floors or a tired clean home. Give me the tired clean home anyday of the week. Reason? A) You know what you are buying B) The probability of paying a premium for new work that may need to be redone is lower and C) Better sellers that are willing to give and take for substandard work.
You still have a right to inspection the property and you still have a right to ask. They have a right to say no and you have a right to back out if you do it within the time frames of the contract.
First question I'd ask you is, Are you using a Buyer's Agent, to protect you during the purchase?
As far as, being normal? The seller may ask for that you sign a clause, but it is up,to the buyer to agree to such a clause.
Does your contract have stipulations that you may back out of the purchase within X number of days of the inspection contingency?
Just because a seller is selling as is, does not mean that the buyer can not make a request for repairs.
Please talk to your agent, not the listing agent for advice.
If you have not placed an offer yet, and don't have an agent, stop! Interview several experienced agents, and pick one that you feel comfortable working with.
Ay questions, please check my profile and contact me.
This might only serve as a deterrent to present home inspection request. However, there are instances that a SOLD as IS clause does not mean anything because the seller may consider working with the buyer on certain repairs to consummate the transaction rather than putting the property back on the market.
It's not unusual for flipped properties or bank owned properties to ask you to take the property as-is. As you would with a bank owned property, do your due dillegence and get as many inspections as you want to satisfy yourself as to the condition of the property, keeping in mind the seller may not do any repairs.
Sometimes, while a seller might not do any repairs, we are able to negotiate a credit or a reduction in the sales price.
Speak with your agent about your options and good luck to you!
I agree with Cathy, this is common with "flips".
Talk with your Agent on how you can sign the "AS IS" clause/addendum and still protect yourself via property inspections and your investigative contingency! (assuming you used the most recent CAR RPA contract).