This area of real estate law has so much to it, it would be hard to discuss it all here. You need the expertise of a lawyer or an agent if you do not know what you are doing. The buyer can show up and sue you for 3 years if you do it wrong.
Here is the problem that you have. Just putting the "AS IS" on the listing does not relieve you of:
1. Disclosing any material facts
2. or allowing the borrower from inspecting the house.
In California, once the borrower inspects the house they may back out within 3 days without having to give a reason. If they do they are due a full refund of any deposits.
There are some notable exceptions to the duty to disclose, like if the property were a rental you can sell it on a no recourse basis, or sort of.
If you sold it and someone that did not understand their right to inspect the home they can come back later and ask you for a big fat check, and the courts probably would make you give it to them.
So you want to put it in writing that they have the right to inspect the house, they have the right to withdraw once they inspect the house and get their full deposit back. In fact you want to word the disclosure saying that you “recommend” they get a home inspection.
The home is worth something to someone, "AS IS" As an agent I would market this as a home with a FHA 203K loan to do the repairs. This way the buyer could get a home fully upgraded. My add would say choose your own carpets and wall color.
I would get a home inspection before I put it on the market, when ever I get an offer I would hand them the inspection and ask which of these items they will need repaired at the price they are offering.
Be aware you need to let them know that your home inspection in no way stops them to have a home inspection.
I am in Orange County and more likely can get you a better price for this property than you would get trying sell it your self. I am not sure if I would accept the listing as the distance may be too much.
Feel free to contact me for a free no obligation consultation.
The main thing is to get rid of any foolish thoughts that say you might get as much for your house as a house with no issues and everything is fixed. Package it up with affordable financing that makes sense for someone and that is they way to get top dollar for that house.
The buyer may still come and ask for credits or actual repairs after they have made their inspections but if you make it very clear from the offset it will not be a surprise to them that you will not make any concessions.
If you really want to make sure there will be no renegotiation after you open escrow, you can be very conservative and accept only cash offers with no inspection contingency. Obviously this depletes your potential pool of buyers so its not always a good idea but it is feasible.
You can list your property As-Is in the Los Angeles area. I highly recommend that you disclose all known issues with the property. Please let me know if you have any other questions. You may reach me at (818) 277-1689 or email: IvanInc@me.com.
You are only responsible for what you agree to in the purchase agreement or decide to agree to in escrow.
Just because a buyer asks for something, you are under no obligation to comply.
If a buyer determines the foundation is unsafe, there is asbestos in the duct work and the chimney is about to fall down and asks you to credit or repair everything you can simply say no.
The buyer then either will cancel the transaction or continue.
Sellers are responsible to disclose any facts to the the potential buyer that may materially affect the value of the home. The burden of investigation, however, falls on the buyer.
I would be clear when countering the buyer what "seller will not pay for anything" means specifically. Does this mean the 9A report as required by City of LA? Does this mean retrofitting? Transfer taxes?
Be sure to use your contracts wisely and when there's a question, it's always better to over disclose.
Best of luck!
I suggest sold "as disclosed". You should get a presale property inspection and provide a copy to the parties who are interested in buying your property. Since you know the property is not in thebest of shape.
Seller's find themselves in a hot water when they do not disclose all material facts about a property.
You should also price the home in accord with it's current condition, taking into consideration how much the repairs will cost the new owner. You will need a cash buyer most likely. If the property is basically a tear town, financing will be a real issue.
Best of luck to you!
Kawain Payne, Realtor
Your agent needs to make sure that the buyers sign all of the disclosures as well as the Buyers Inspection Elections and For your Protection get a home Inspection.
Make sure that the Transfer disclosure Statement and any other seller disclosures is as complete as possible - remember that this document will help the seller more than the buyer.
You might want to add an addendum that the sell is AS-IS with no warranty and require the buyers signature that they have physcially inspected the house.
If you are thinking about offering the property for sale to a "developer" it will need to be in a zoning area that allows multi family to be built, and will need to be attractive to a developer (meaning low priced) and in an area a potential developer will find desirable. A builder will not pay for homes that need to be torn down, so you are talking about the land price only.
I don't agree with some of following answers.
Cheryl Garner, Mortgage Expert
Fairview Mortgage Capital, Inc.
CA DRE-01262285 NMLS-295929
You Realtor should be able to tell you which repairs are mandatory.
Hope this helps and please do not hesitate to contact me if you have any further questions.
Realtor, DRE# 01891274
Century 21 All Moves
FREE Monthly Newsletter: http://newsletter.davidnewhome.com
I would make one suggestion in addition to what you have been told. I would recommend you hire a professional to do a physical inspection (cost about $300-$500), which you would attach to your disclosure statement. Make that disclosure and report a part of an "as is" counter offer to any buyer, so they know IN ADVANCE what they can expect to find when they complete their own inspection. That way, despite the fact that you may never have lived in these homes, you cannot be accused of giving inadequate, or timely, disclosure. And, you can sell the homes "as is" while putting the liability on the third party, the inspector.
Be sure you give the client plenty of time to consider the counter offer, and plenty of time to complete their own due diligence.
The Bremner Group at Coldwell Banker
REALTOR, 00588885, ABR, CDPE, eAgent, CSP, SFR, HRC, CRE
(O) 310-571-1364 DIRECT
Accredited Buyer Representative|Certified Distressed Property Expert |Pre-Foreclosure Specialist Certified
You might want to give the Seller Transfer Disclosure Statement to the buyers with your counter offer so they're aware of the problems beforehand. Also make sure when the buyers provide proof of funds that they either have all cash, as others have suggested, or that they have enough funds on hand to handle the repairs needed after the close of escrow.
Keller Wiliams Realty
DRE Lic. #01019403
Good luck in selling! You will find the right buyer.
Keller Williams Realty
Yes, you can definitely sell your house without any repairs. However ALL known defects MUST be disclosed. There maybe retrofitting that will be required such as smoke detectors, strapping of waterheaters etc. If the property has major repairs then better to target cash buyers. Whether cash buyer or financing, make sure this is addressed upfront in an agreement or addendum, that property is sold as is and any repairs will be the responsibility of the buyer.
Just remember, you will need to list any and all defects that you know of on the TDS "Transfer Disclosure Statement", this protects you and is mandatory with all real estate sales.
You're not required in the State of California to make any repairs to a home for the purpose of selling. The only thing you must do to sell a home is to strap the water heater and install proper smoke detectors. Your Realtor will be able to assist you in meeting Code requirements with regard to the Water Heater and smoke detectors. That being said, it's important that you price the home correctly as soon as it hits the market. Make sure your price reflects the condition of the home using a minimum of 3 or 4 local comparible sales. Make sure that all known material facts regarding the home are disclosed in writing. Lastly, I recommend that you only consider cash Buyers for the purchase as they will be more apt to purchase "As Is" and not make any later Requests For Repairs. And you will avoid any potential Lender finance Issues. Good luck!