Art Petersen, Both Buyer and Seller in 85648

In California the term "As Is" means little. What about AZ just what does "As Is" mean?

Asked by Art Petersen, 85648 Thu Nov 4, 2010

Help the community by answering this question:

Answers

5
Dear Art:
Basically, the seller is stating that the price has been adjusted to the current condition and that no further repairs will be done by the seller. The buyer, however sitll has the right to inspect the property and if not satisfied may exit the purchase contract. AS-IS does not mean the buyer cannot ask for a concession in negotiating the price or after the inspection. The seller can agree or not.

Feel free to look at the "Buyer Advisory" published by the state of Arizona at http://www.arizonahomesland.com/forbuyersorrenters.html

May I wish you the best.

Jeff Masich, Realtor
Arizona Homes and Land
http://ArizonaHomesLand.com
HomeSmart
Scottsdale
0 votes Thank Flag Link Thu Nov 4, 2010
Of particular note, the AS IS addendum negates the standard "Seller Warranty" that buyers have traditionally relied on: you do NOT have an assurance that heating and cooling, plumbing and electrical, or pools and spas will be in working order when you take ownership of the property. Since those are items that can be costly to repair they weight heavily when valuing the potential purchase value.
0 votes Thank Flag Link Thu Nov 4, 2010
As-Is Addendum rider clearly indicates to the buyer that the seller will not spend their money to make repairs prior to closing and as part of the transaction. "As-Is Addendum" is common for Bank owned property and for Short Sale property because the seller often has no money to make repairs. If you find something that needs to be fixed during the 10 day inspection, you have two options 1) accept the problem or 2) reject the purchase contract by making a counter offer at a lessor price to address the problem found.

As was stated earlier, in-spite of the "As-Is" requirement of a bank seller, Bank Owners may make exceptions upon occasion and agree to pay for a fix if the repair makes the difference between the home being habitable and not, so that the house can qualify for certain types of loans. Explore these issues and the options with an experienced agent when preparing your initial offer and when a problem is found during the inspection period to see how a counter offer can be crafted.

Loren Hoboy
623-239-6919
0 votes Thank Flag Link Thu Nov 4, 2010
Here's a link to the AZ "As-Is" contract addendum that spells out what it means:

http://www.aaronline.com/documents/aia.pdf

The buyer and seller can always negotiate exceptions to the addendum, such as providing certain repairs. Even bank-owned sellers may make repairs in limited cases even though they specify as-is in their contracts.
0 votes Thank Flag Link Thu Nov 4, 2010
"As is" "Where is" simply put means that the seller will make no repairs and you will receive no credit toward repairs. If you are purchasing one of these properties, get a complete home inspection by a licensed home inspector. You will find if the home is worthy to purchase or not. If it isn't and you are in the due diligence phase, you can pull out and get your earnest money back. If it passes the inspection, you will feel confident in going ahead. You will find that the dollars you spend on a home inspection are the best dollars you spend when purchasing a home. Additionally as further protection, I would add that you should also consider purchasing a home warranty when you close on the home.
0 votes Thank Flag Link Thu Nov 4, 2010
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer