Home Selling in 90026>Question Details

Lovemydogs, Home Seller in 90026

Can I sell a deteriorated home as is in Los Angeles CA and not be responsible for repairs requessted by buyer?

Asked by Lovemydogs, 90026 Wed Nov 17, 2010

The homes are in a transitional area in LA and would probably be more appealing to a developer for tear down. We have been approached by two different parties who want to restore. Our concern is that those parties may then come back and want heat, roof, plumbing, termite, etc repaired. If sold AS IS - seller will not pay for ANYTHING - will that keep us safe?

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Answers

26
Actually the last listing I sold as a broker, I sold "AS IS"

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.
0 votes Thank Flag Link Tue Feb 24, 2015
Make it very clear in the listing that your agent creates that the home is strictly AS IS and Seller will not pay for any repairs.

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.
0 votes Thank Flag Link Tue Feb 24, 2015
You may sell "AS IS." You would make this known in your listing. During escrow, you will disclose all known issues with the property. Buyers will do their investigations and could come to you during the allotted time frame in Escrow and ask for repairs. You would simply deny their requests as it was stated in the listing that the property is being sold "AS IS," and was priced accordingly.
0 votes Thank Flag Link Mon Feb 23, 2015
There is no issue in selling a tear down. Be sure to disclose all issue to the buyer and make it known upfront that no repairs will be done. This is fairly common and shouldn't be an issue at all.
0 votes Thank Flag Link Mon Feb 23, 2015
I have a group of investors that look for properties to rehab and they are all as is. They would love to purchase your property. Honest guys just love what they do. I would be happy to get you in touch with them. Let me know if your are interested.
0 votes Thank Flag Link Fri Feb 6, 2015
Hi

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.
0 votes Thank Flag Link Fri Feb 6, 2015
You are not responsible for repairs requested by the buyer unless you agree to them.

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.
0 votes Thank Flag Link Thu Feb 5, 2015
Technically, and per the contract, every home sold in CA is sold "as-is". However, many buyers ask for credits or repairs in the second round of negotiations known as "request for repairs." (I believe this is to what you are referring).

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!
0 votes Thank Flag Link Wed Feb 4, 2015
Sold "as is" will not keep you in the clear.

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
0 votes Thank Flag Link Wed Nov 28, 2012
Hi Lovemydogs,
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.
Good Luck
Janet McCarthy
Professional Realtor
Connect Realty
Jmccarthyhomes@gmail.com
858-243-5719
0 votes Thank Flag Link Tue Nov 27, 2012
Call these group of investors, they might be interested in your properties.
818-308-4443

Good luck.
Web Reference: http://hardmoneyloans.org
0 votes Thank Flag Link Sat Sep 29, 2012
Even if you stipulate in the contract "As-Is" that will not prevent the potential buyer from requesting credits or money back for necessary repair work. The best way to sell a neglected home, is to price is very very low.

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.
0 votes Thank Flag Link Fri May 25, 2012
As long as you disclose, you can sell your house in whatever condition you want.
0 votes Thank Flag Link Thu May 24, 2012
In the State of California, there is no such thing as selling property AS-IS. Disclose - Disclose - Disclose. I can't stress that enough. The more you disclose the safer you are regarding a lawsuit. A buyer can sue you at any time - though it can be costly. The new buyer must prove your "intent" to hid the facts regarding your property but why take a chance? Speak with your Realtor so she/he has all the facts.

I don't agree with some of following answers.

Good Luck.

Cheryl Garner, Mortgage Expert
Fairview Mortgage Capital, Inc.
Email: cheryl@cherylgarner.com
CA DRE-01262285 NMLS-295929
Web Reference: http://www.cherylgarner.com
0 votes Thank Flag Link Thu Apr 14, 2011
From the financing perspective, if we get a limited DU findings report that only calls for an exterior "drive-by" appraisal, you avoid the interior inspection all together. It's difficult to get those findings, but it does happen. The bank will go by the DU findings that are submitted to them and normally will not question the findings.
0 votes Thank Flag Link Wed Apr 13, 2011
Best if you do a home inspection first by a professional home inspector. Everything the inspector finds in your home, make that part of your disclosure and your as-is counter offer to your buyer. Keep in mind though that some repairs are regulatory and will need to be done in order for the lender to approve the loan to the buyer.

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.

Thanks
David Akram
Realtor, DRE# 01891274
661-505-8550
Century 21 All Moves
Contact: http://contactme.davidnewhome.com
Web: http://www.DavidNewHome.com
Blog: http://blog.davidnewhome.com
FREE Monthly Newsletter: http://newsletter.davidnewhome.com
Web Reference: http://www.DavidNewHome.com
0 votes Thank Flag Link Wed Mar 30, 2011
Hi Love;
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.
Deborah Bremner
The Bremner Group at Coldwell Banker
REALTOR, 00588885, ABR, CDPE, eAgent, CSP, SFR, HRC, CRE
(O) 310-571-1364 DIRECT
(D) 818.564.6591
(C) 310-422-4288
http://www.thebremnergroup.com
Accredited Buyer Representative|Certified Distressed Property Expert |Pre-Foreclosure Specialist Certified
0 votes Thank Flag Link Mon Mar 28, 2011
Hi Lovemydogs,

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.

Diane McDonald
Keller Wiliams Realty
DRE Lic. #01019403
323-236-4369
0 votes Thank Flag Link Mon Mar 21, 2011
there are many homes in Los Angeles that need repair/attention. Buyers will always ask for Request for Repairs, or credit from seller. Sellers are not obligated to approve such requests, with the exemption of city/government required repairs. as every agent has mentioned here, Disclosure is the key! disclose as much as you know about the property.
Good luck in selling! You will find the right buyer.
Myrna Averia
broker/associate
Keller Williams Realty
lic 01269474
Web Reference: http://www.MyrnaAveria.com
0 votes Thank Flag Link Mon Mar 21, 2011
Dear Lovemydogs,
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.
Web Reference: http://Dawnwelch4homes.com
0 votes Thank Flag Link Wed Dec 29, 2010
Thank you to everyone who responded your information is much appreciated!
0 votes Thank Flag Link Thu Nov 18, 2010
YES! You can sell your house in this condition. However, before the close of escrow you would need to meet certain requirements with strapping the water heater, working smoke detectors, and a few other items. When buyers make offers and even if they request repairs, it is completely up to the seller if they will do any repairs or just sell the property in its current condition.
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.

Heather Paul
Coldwell Banker
424-625-1037
0 votes Thank Flag Link Thu Nov 18, 2010
Hello Lovemydogs,

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!

Matt
0 votes Thank Flag Link Wed Nov 17, 2010
It should be stipulated in the contract that the property is being conveyed As-Is and all repair costs will be borne by the buyer.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Wed Nov 17, 2010
If the contracts state the property is being
Web Reference: http://www.TheRGG.com
0 votes Thank Flag Link Wed Nov 17, 2010
So long as you disclose all the defects that you are aware of and make sure you have the buyer sign the AS is Addendum. I do not see why you should be concerned.
0 votes Thank Flag Link Wed Nov 17, 2010
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