Home Buying in Massachusetts>Question Details

katt, Both Buyer and Seller in Massachusetts

When listing a property in an "As Is" status, what does it mean and should it be priced lower. Some are in good shape!

Asked by katt, Massachusetts Wed May 2, 2012

Help the community by answering this question:

Answers

9
BEST ANSWER
Excellent answers so far. As is does normally just mean that the seller is indicating that they will not do any fixes to the property. Your inspection should reveal anything that needs to be done, although in our area this can also mean the selle will not fix a septic so this can cause financing issues.

As you said, there are plenty of homes in excellent condition being sold 'as is'. It is not indicative of condition of the home.
1 vote Thank Flag Link Wed May 2, 2012
AS IS means just that, a buyer may inspect the property but the Seller is stating they are not prepared to do any repairs.

When you ask if it should be priced lower, they typically are priced lower than the competition and if their not a buyer needs to factor in that they aren't going to be able to get the Seller to do anything should there be problems uncovered during the home inspection. However most states allow a buyer a diligence period in which to get the inspections done and during this period you may terminate the contract for any reason or no reason whatsoever. If Massachusetts has such a contract then you could always make your deal, inspect the home, if you realize there's a significant amount of work that will need to be done, then terminate the contract and then immediately present a new contract with a new lower price factoring in the required repairs.

My best advice to you is to work with an experienced buyer broker who can assist you.
To find one check out the link I've attached below.

I wish you all the best and happy house hunting.
0 votes Thank Flag Link Sat May 5, 2012
As is means they are not doing anything they should have done when they owned it and enjoyed it themselves.
0 votes Thank Flag Link Thu May 3, 2012
Somehow when you mention AS IS in the mls, it creates an impression that it needs a lot of work. You should price it based on the work it needs and not because it is being sold as is. The description is most important.
0 votes Thank Flag Link Thu May 3, 2012
I agree with the other answers and would like to add.
Almost Every short sale and foreclosure listing indicates sold " AS Is " In the case of the short sale the sellers are low on funds and do not or cannot make any repairs and these homes are typically priced below market value. In the case of the foreclosure the lender does not want the time, expense and liability of making repairs. Even thoukgh it states " sold as is " there are cases where sellers or lenders have paid for repairs .
0 votes Thank Flag Link Thu May 3, 2012
Every single contract I write has an "as is" clause. That means IF there is a flaw, you accept it. No house is perfect. It is a protection for the seller but does not preclude a buyer having an inspection contingency.
0 votes Thank Flag Link Wed May 2, 2012
Hello Katt,

The properties sold "as is" may or may not be priced lower.
Usually pricing depends on the comparable market analysis (CMA), with consideration to the overall trend (prices going up or down), if the property is distressed (in pre-foreclosure or foreclosure), and how quickly the owner needs/wants to sell the place.

"As Is" most often means the seller telling buyers/agents: "Inspect all you want, but I'm not repairing anything, and not reducing the price after the inspection".

I agree with other agents here mentioning inspections (regular, termites, Chinese drywall, mold, lead, radon - whatever you plan on doing). In buying "as is" property inspections are you exit plan, and your due diligence.

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
IrinaKaran@gmail.com
0 votes Thank Flag Link Wed May 2, 2012
I frequently sell homes AS IS. Many have no issues whatsoever. Often times home owners who feel they have aggressively priced their home to reflect market conditions aren't willing to negotiate further so they notify buyers they are selling as is as seen. An as is sale doesn't necessarily mean there are issues. You need to do your homework on the specific house and get any relevant inspections and then decide if you are comfortable with condition.
0 votes Thank Flag Link Wed May 2, 2012
As-Is means that the Seller wants to sell it exactly as it sits; they do not want to put any more money into it to sell it. If you find something wrong, needing repair, or needing updating; they want you to bear the burden.
This is no indication of the CONDITION, although it does make you wonder.

The CONDITION is a separate factor and should be addressed by an Inspection.

When your Realtor does a CMA, the condition of the house and the Comps will affect the Market Value of the homes: That will determine your offering price.
0 votes Thank Flag Link Wed May 2, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer