Home Buying in 94118>Question Details

dilipb1, Home Buyer in San Francisco, CA

We plan to make an offer on a condo. It has no inspection reports, seller wants to sell it AS-IS. Is that a good idea?

Asked by dilipb1, San Francisco, CA Tue Aug 7, 2012

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25
I would definitely get a super PRO ASHI (or equivalent state certified) inspector (not referred by your Realtor, pick your own) to inspect the condo. It's the cheapest insurance you can buy.
2 votes Thank Flag Link Sun Aug 12, 2012
"AS-IS" is simply means that the seller would rather not make repairs. It doesn't necessarily mean that the house is about to fall apart. If the seller discloses that the bedroom window is cracked, for example, they would rather you repair or replace it yourself.

Keep in mind that everything is negotiable...even if the seller requests an AS-IS sale. But also keep in mind that if your area is competitive, other buyers will likely submit AS-IS offers to try and win the bid, regardless of whether the seller is asking for an AS-IS offer.

Either way, you will still have the same opportunities to have your inspections performed and cancel the contract if the inspection results are not satisfactory to you.

If your agent has not explained this thoroughly, then get a new agent.
2 votes Thank Flag Link Tue Aug 7, 2012
Listen to your agent's advice. If it doesn't feel right to you then ask to speak with the agent's managing broker so all your questions and concerns can be addressed. You don't want to make a big mistake just because things are competative out there.

Best of luck,
2 votes Thank Flag Link Tue Aug 7, 2012
hi Dilipb1,
You should always request an inspection. That's your right as a buyer and your agent should be recommending that you have one done.
Any negative information about defects with the property could give you a reason to exit the escrow process thereby relieving you of the duty to buy a "lemon" property.
Best of luck,
Teresa Grobecker
grobeckerco.com
1 vote Thank Flag Link Fri Sep 28, 2012
No, It's not usually a good idea. It's a big fat red flag. If there are reasons why you want to pursue it, do so - but cover all your bases and investigate thoroughly!
1 vote Thank Flag Link Tue Aug 28, 2012
Hi,
you can still get your own inspections...just be prepared to pay for any repairs needed as it looks like the seller does not want to pay for them

good luck!
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Flavio Tejada, Owner/Broker, Realtor, MBA-Finance
(415) 305-2958
1 vote Thank Flag Link Wed Aug 8, 2012
When a seller says they want to sell "as-is" it means they don't want to do any repair work on the property. It DOES NOT mean they would not accept an offer in which you have a chance to get inspections and then either cancel the sale, or re-negotiate the sale price, based on the findings of the inspections.

It's usually a good idea to have an agent who is experienced in working with SELLERS to represent you as a buyer so your agent can help you understand the seller's thinking and put you in the best position to negotiate and buy the property you want for the price and terms that make the most sense for you.
1 vote Thank Flag Link Tue Aug 7, 2012
I would not consider this a RED FLAG; it is de-rigour these days:
The REOs and the Shortsales have owners who do not want to lose another penny.
The Buyers, however, need to have it TURN-KEY becaise they have used up all their money just buying the darn place.
That's why the Lenders are getting creative with Re-Con piggy-back loans.

I wouldn't expect any Inspections done by the Seller; again, de-rigour.

Your Offer should include INSPECTION CONTINGENCIES so that you can either re-negotiate the repairs, or walk away from it.

What is your Realtor advising?
You are using a Realtor, right?
1 vote Thank Flag Link Tue Aug 7, 2012
You must always do your own inspection when you are purchasing a home or a condo! Even if it says as is, you want to know if there are any problems that you will have to deal with and fix. You should also be working with an agent. When you work with an agent they can help you negotiate and guide you through the process and it is of no cost to you. The seller pays the commission. If you would like a referral for the San Francisco area, I would be happy to help.
Best,
Jodi Barmash
Keller Williams Realty Sunset
jodi@jodibarmash.com



#01847478
0 votes Thank Flag Link Sat Sep 29, 2012
Many good answers given by others - consider this: IMO your problem is far greater than the unit you are considering for purchase. As it's only 16 years old, depending on your knowledge, you can inspect much of it yourself. A pro ASHI inspector is best, but won't do destructive testing that would
reveal hidden damage. You could be buying the money pit with a fresh coat of paint covering up the
rot.

Additionally, your unit could be in great shape, but your home inspector will not normally have access to other units, and attic, and basements if any, so remember that in condoland, you are not buying a house, or a condo, you're buying shares of the whole development. Construction defects
are all too common. If they aren't discovered and repaired before the statute of limitations runs out (in CA usually 10 years - consult your attorney), you own it ! The difference between paying to repair
these same damages on a SFR is that in a condo you have no say in what to do, or how to do it,
unless you're on the Board.

People often don't mind taking a well calculated risk, particularly if they have plenty of cash, and
income after the purchase, but if money is tight - thinking a condo will spare you the unexpected
shocks an individual homeowner might face can be a sense of false security. You can read much
about it online in HOA forums from all over the country.
0 votes Thank Flag Link Sat Sep 29, 2012
This may not be a good idea? The good idea is to get yourself a buyers agent in your area that represents you in this transaction and invest a few hundred dollars for your own inspections. Make the offer contingent on a favorable inspection and go for it! AS-IS can be negotiated with the right buyers agent and a good home inspector. GOOD LUCK
0 votes Thank Flag Link Tue Aug 28, 2012
Depending on how you wrote your offer.. You may still in Wisconsin have a home inspection contingency in the offer. Then it would depend if you wrote the seller has a right to cure. Check with your agent and understand in you state how to write an offer. Real estate condition report just tells you if you are making an offer on the home you are aware of what is wrong with the home and you are making an offer on it any ways. If the seller is telling you this home has a bad roof and you make an offer knowing that. You can't come back and say I want out because it has a bad roof. So check with your agent and see how you wrote your offer and have that agent guide you. We are there to educate you in buying your home.

Debby Thompson Broker
Homestead Realty Inc
http://www.debbyrealtor.com
0 votes Thank Flag Link Sun Aug 12, 2012
I agree with Michaels response below.
0 votes Thank Flag Link Wed Aug 8, 2012
It is my understanding all homes are sold as is. Reports are not handed down generation to generation of home buyer to home buyer. usually you get your own inspections done. talk with a local realtor in your area you feel comfortable with.

Harold Sharpe - Broker
So Cal Homes
(951) 821-8211
harold@socalhomes.biz
http://www.socalhomes.biz
California Department of Real Estate Broker License # 01312992
0 votes Thank Flag Link Tue Aug 7, 2012
Yes, I agree with the other agents too. Do your due diligence and get your inspection reports. Make this contingent in your offer.
0 votes Thank Flag Link Tue Aug 7, 2012
Almost all sales are sold AS-IS, but you have every right to get any inspection you would like.

Good luck,

Tap
0 votes Thank Flag Link Tue Aug 7, 2012
Thank you all for your responses. I should clarify this is a seller owned 1996 built condo in SF, not bank-owned. We are told that the market is very competitive and this is the norm but being first-time buyers, we are unsure of issues that could come from a inspection waiver. Is property inspection waiver common in SF?
0 votes Thank Flag Link Tue Aug 7, 2012
The market is highly competitive, so you want to submit an offer that is strong enough to compete - to some buyers that means they are willing to waive inspections - but that doesn't mean you have to. If you aren't already working with your own agent, give me a call.
Amy Blakeley
McGuire Real Estate
(415)533-2496
Flag Tue Aug 7, 2012
Keep in mind EVERY property is different and every seller has a different situation. Many properties are under priced but many are not. Honestly, there is no substitute for working with an agent who can provide you comps, determine what the seller's situation and offer all kinds of advice on how to proceed. It's a tricky business buying property which is why good agents really help their clients. Feel free to contact me.
Flag Tue Aug 7, 2012
As a buyer, you should be doing your own inspection. As-Is simply means that the seller is not willing to put any money into upgrades or repairs. You can always ask for "credits" during closing. Your agent will be able to guide you through this process.

Good luck!

Gabriel
0 votes Thank Flag Link Tue Aug 7, 2012
Hi! I agree with the San Francisco agents. This is standard here in a situation where a condominium is a newer property or perhaps even remodeled. Older properties might have reports, but either way, a buyer can, and in many or even most situations, get their own. That's where the buyer's agent comes in. The listing agent can act as an agent for both parties, but it's up to the buyer to determine if that's the right way to go. A buyer's agent will definitely be able to help in these decisions as they are always on the Buyer's side.

Additionally, without a buyer's agent, you could be missing other important details, such as how much the unit down the hall sold for last month or whether there's a better property for sale around the corner. The internet and real estate websites are good, but cannot (and won't ever) replace a good agent who's working for you.

If you're asking a question like this, you should probably have an agent that you are comfortable with so that you can ask any question, anytime. Many buyers feel as thought they can get a better deal or possibly some sort of discount by going to a listing agent and working with them. That might work, but then again it might not. Hard to say versus how much you might have saved when a buyer's agent negotiated a lower price or found you a better home. Let me know if I can help. Thanks and good luck.-Matt Ciganek

http://www.sfpropertyreport.com
415-240-9901
0 votes Thank Flag Link Tue Aug 7, 2012
The short answer is no. Your real estate agent is the person to assist you with this.

Feel free to call me at 415-200-7202.
0 votes Thank Flag Link Tue Aug 7, 2012
I agree with Ron, as-is means little except that the seller (often a bank) is not willing to make any repairs and they are signaling that in the use of as-is. Can you still ask for repairs, sure and the seller can say no. Most homes are sold as-is, what else is there other than a to be built house. There it is--- - as-is. Get an inspection and go forward with eyes open.
0 votes Thank Flag Link Tue Aug 7, 2012
It sounds like you might not be working with a buyer's agent, who should be advising you on the questions you've put forth here? If you need representation, I'd be happy to help you craft an offer that protects you, too, not just the seller. Give me a call.

Amy Blakeley
McGuire Real Estate
ablakeley@mcguire.com
(415)533-2496
0 votes Thank Flag Link Tue Aug 7, 2012
Normal CAR purchase contract allows the buyer to do their own investigations on the property within the time frames. There is no "as is". You have the right to inspect, the right to ask , and the right to back out if they say no. If your Realtor is telling you different get a new one.
Web Reference: http://www.LauraCoffey.com
0 votes Thank Flag Link Tue Aug 7, 2012
Almost all properties are sold "as - is" in our area. Just make sure you have an inspection contingency. If you find something during the inspection, you can negotiate it out or walk away with no penalty, as long as you are within your inspection contingency period.

Talk to your agent.
0 votes Thank Flag Link Tue Aug 7, 2012
As is always signals a 'red flag.' I would encourage you to be wise and get a home inspection. Based on that, you can decide whether to stay in the deal or get out...if you like the home, this is the step I would begin with.

Good luck.
0 votes Thank Flag Link Tue Aug 7, 2012
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