Home Buying in Rapid City>Question Details

Ruth, Home Buyer in Rapid City, SD

Okay, we are still on the furnance issues. Does the realtor have to advertise "as is condition" or can that decision be made at a later?

Asked by Ruth, Rapid City, SD Wed May 16, 2012

time? Original offer accepted by buyer with the condition that furnance, etc be in working condition and contingent on inspection and title search. Second offer made asking for $ to do some repairs found during inspection. Furance with leak one, utility company made inspection, and now buyer is paying to have a furnance inspection. Is there any obligation on behalf of the seller to fix it or at least offer to pay half? Or does the seller get to change mind in the middle of everything and say they are selling it as is?

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Using a term like as-is really is meaningless and basically is only saying the owner is not willing to make repairs, so don't expect any. You can still ask, they can still say no. All homes built are sold as-is and the only exception are ones to be built. There it is, you make an offer on it as it is, then you can ask to have this or that repaired and the owner can say no and you can walk away if your request is not agreed to, that is as long as that is all covered in the offer. Most offers give you an inspection period and most offers say that certain basic things will be working, like plumbing, electric, furnace, etc. This does not mean both sides can't agree to buy it with these not working, but they have to agree to it and if a lender is involved they may not allow it.

Listing a house as-is is not required since it is taken for granted.
1 vote Thank Flag Link Wed May 16, 2012
The problem found in the inscpeciton may not have been known by the selleing agent and therefore under no obligation to disclose it. If the advertisement said as is before the inspection then there was no attempt to hide the condition. Disclosing such conditions in an ad is seldom practiced but should be available with the property disclosure as required by South Dakota State Law, with a few exceptions, if it is available. After the inspection and it is disclosed then the selling agent should make sure the sellers make such condition change on the disclosure forms. It would be okay to say inspection has been completed and is available if it was shared with the sellers or sellers agent. The buyer is under no obligation to share this report with the sellers since it belongs to buyer. Asking for repairs would require sharing that portion which repairs are being asked for.
0 votes Thank Flag Link Sun May 20, 2012
Ruth, a lot depends on what your CONTRACT says. In our contracts, the seller has very little obligation to repair anything. The agent does not have to advertise 'as is'. if the inspection notes repairs, the buyer may ask for them to be fixed but the seller is under no obligation. However, there is another paragraph in our contract that states pretty much that items not found to have problems during the home inspection but are broke at walk thru are the sellers responsibility up to a certain amount (in our contracts the standard is 1% of the sales price). Items found during the inspection and not negotiated during the home inspection time frame (and the buyer agrees to proceed anyway) are not included. I'm a little confused about your 'offer one' and 'second offer' if you wrote in your contract that the furnace be in working order, that may be a different story. Was an offer accepted or are you just referring to offers that you were negotiating? As I mentioned, each situation depends on what you have stipulated in a RATIFIED contract, not what you want to happen.
0 votes Thank Flag Link Sun May 20, 2012
Disclosure is critical. If you know of the cndition then disclose it. It is always important to get a home inspection after the offer is accepted to identify any latent defects which may not be discoverd with a visual walkthrough. This protects you as buyer and then if it is identified the disclosure it critical once again. Make the contingency for repairs identifed in the inspection part of the contract.
0 votes Thank Flag Link Sun May 20, 2012
Thank you to each and every one of you for your answers, and taking the time to educate me.
0 votes Thank Flag Link Wed May 16, 2012
When an agent knows up front that a property is going to be sold at a price that warrants being termed "AS IS" they will post it as such on the local MLS and it will be advertised that way. What often happens is that after an initial offer, when the buyer and seller are negotiating the sale price the sellers often find themselves in a position of lowering their price to a point that the are not willing to make repairs. At that point the transaction may become AS IS.

Bill
0 votes Thank Flag Link Wed May 16, 2012
Most of the time the Realtor will advertize "as is" condition, but not always. That can be part of the negotiations done through the offer and counter offers. How it is purchased may be determined by the price or other factors. If the price is considerably lowered in the negotiations the seller may choose to sell in "as is" condition rather than do costly repairs and still settle for a lower price. It is important to have a seasoned Realtor with great negotiating skills to be on your side!! Judy
0 votes Thank Flag Link Wed May 16, 2012
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