These days most buyers are savvy enough to know they should have them. If you want to preclude inspections being done you could have pre-sale pest and contractor inspections done by respected local inspectors but many buyers will want to do their own anyway.
Lance King/Owner-Managing Broker
1) Understanding the costs of repairing the property to their standards after the sale
2) Getting a loan. Many banks don't play the as-is game. They want the property "made whole" (repaired) to a certain level or they won't provide the purchase mortgage. I've had listings sit on the MLS unsold for months because no buyers could get financing due to the condition of the property and the seller did not have the resources to make repairs. Eventually a cash buyer comes along or the purchase is funded by a non-traditional lender.
As-is means that the buyer and seller have not contracted for the seller to make repairs, and the buyer is taking the home with known conditions. There is an as-is addendum which explains your duties as a seller, that is you have a duty to DISCLOSE. And the Buyer has a duty to INVESTIGATE.
When I have a seller who wants an as-is sale, I always recommend that the seller obtain their own inspections up front and disclose those inspections to the buyer. This way the buyer is going to be making an offer based on the known conditions and should not want to renegotiate unless they find out new information.
In addition to Seller disclosures, the agents have a duty to disclose any known material facts which may affect a buyer's decision to buy. So if you fail to disclose something and you told your agent about a condition they have a duty to disclose that condition, (with few exceptions).
Be sure that you are communicating with your agent on these questions so that they can represent you.
A Buyer's Agent would not be acting as a fiduciary if they did not encourage a Buyer to perform inspections. Furthermore, a Buyer would be very foolish to not perform their investigative due diligence on the property whether or not they are in an "AS IS" transaction. Both the Listing and Selling Agents must also provide their disclosure findings.
"AS IS" does not release a Seller from disclosing all known material issues. When in doubt about whether a particular issue should be disclosed many times the answer is to disclose to remove post-transactional risk! Most real estate litigation is due to non-disclosure.
The buyers can choose whether to order their own inspections or not even though they purchased the property As-Is. They still may want to know any repairs that need to be done with the home before they move forward with the purchase since they know that you, as the seller, won't be fixing any of them. If the buyer does decide to move forward with inspections and discovers much larger repairs than expected, they could decide not to go through with the purchase.
Also, if they do order inspections, you can request for copies of them as a seller.
Hope this helps!
Even if you are selling you home as-is, the buyer (by law) has a right to do a complete inspection. You may or may not provide the buyer with the inspection, however, a potential buyer has a right to do the inspection and make the offer contingent. It is upto you to accept or reject the offers. Do discuss in detail with your agent, so that you are properly informed of your duties as a seller. Law requires certain disclosures from the seller. This is a critical topic and must be discussed with your agent.
At this point, they may ask for repairs. You still have the right to say no, or you can re-negotiate with them. They may also cancel the contract, due to the new information.
The inspection is for the benefit of the buyers to tell them the condition of the house, whether the mechanicals work, if solid structure, condition of roof, etc. so than estimate cost to repair and replace. It is buyers choice. However if government financing those items must comply.
Even though sold "as-is" certain items need to be working - things that make the house livable and safe without hazardous conditions: running water, heating/cooling, range, electricity.
AS-IS means you don't want to pay for every little thing the buyer finds during the escrow process. Back in the early 1990s, buyers would offer a price assuming the house had no defects, but then when the buyer found defects, they would demand the seller fix them. Every couple of days buyers would find something for the seller to fix. That screen is loose... fix it. That faucet leaks ...fix it. This was fun for the buyers, but tough on the seller.
Somewhere along the line, listing agents and sellers both realized "Wouldn't it be better if we just get all the inspections ahead of time and show the buyer everything up front that is broken so the offer price already reflects those things and the buyers don't bug me every other day asking me to fix stuff."
If you were my seller, I would recommend you get inspections ahead of time. Whenever a buyers agent showed interest, I would email the inspections to them, which basically tells them "We are giving you everything we know about this property, so now you should feel comfortable giving us an AS-IS offer. Also, since we are showing you everything, you and I both understand that your offer already takes the condition of the house into consideration. Since we gave you all this information, we don't expect to be spending time throughout this process fixing and/or renegotiating price."
Inspections ARE EVEN MORE NECESSARY in the case of 'as is' sales so the buyers have an accurate sense of whet they are getting into financially.
As a seller, you should allow these inspections. Shoudl you refuse to do so, selling your home will become much more difficult.
Also, there is such a thing as "latent" defects - something that the seller may or may not know about - so it is best to fill out your sellers' disclosures, and give all of the info about the house - and all the problems in the house that you know of.
So, if you ask what's the difference in selling "as is" and selling the regular way?
As pointed below, the difference is that the buyer knows not to negotiate after the inspection.
If the buyer is not happy with the inspection, they can walk away.
Hope this helps,
Beachfront Realty, Inc.
I will go as far as to suggest you to perform your own inspection prior to putting your home up for sale. It will make your negotiation position much stronger with any potential buyer. On all my listings I have inspections done prior to putting the house on the market.
How is a buyer to know what they are buyingâ€¦and what price to offer? In most cases, inspections that seek to reveal the condition of the house and its systems help to answer those questions.
The seller is also required to disclose any issues the might be of concern to a buyer.
Market forces come into play as to whether you can dictate â€œas isâ€ sale terms but in most cases a buyer will be willing to pay less for a house that requires repairs before it is truly satisfactory.
Charles Butterfield MBA
Real Estate Broker/REALTOR
Cell Phone: (408)509-6218
Email Address: firstname.lastname@example.org