I made an offer on an AS-IS property

Asked by Sam, 06484 Tue Oct 4, 2011

I made an offer on an AS-IS property with the stiuplation in the remarks sections that "Roof, heating and plumbing are in working/satisfactory condition. Permission to inspect with contractor."

I was under the impression this statement would allow me to inspect and then renegotiate or withdraw my offer. My agent claims since this is a AS-IS property that cannot be done. I have to take it.

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15
Scott Godzyk, Agent, Manchester, NH
Tue Oct 4, 2011
BEST ANSWER
If it was written like that, they may deny you. First thing is you can not renegotaite on a bank owned home, very rarely will a bank do this. You should have wrote that seller to turn on all utilities and have working in a proper order. Then add that this sale is contingent upon a satisfactory home inspection within 7 days. This way you would have an out, but teh seller still may not renegotiate with you if you find anything. With bank owned homes you should review and inspect as much as you can before making an offer and include any repairs or credit with your initial offer and include estimates and pictures.

http://www.trulia.com/blog/scott_godzyk/2008/08/so_you_want_…


Please see my blog for a full list of tips and advice on buying a bank owned home
Web Reference:  http://www.ScottSellsNH.com
1 vote
Paul Jensen, Agent, Shelton, CT
Tue Oct 4, 2011
Sam, you can do your inspection to decide if you want to go ahead.......however on these bank properties they don't want to get involved doing repairs. When your buying"as is" you need to know what your doing and have a solid understanding of the risks you are taking on. That inspection contingency allows you an out if you find problems that would convince you to walk away. Good luck.
1 vote
Barbara Craw…, Agent, Shelton, CT
Tue Oct 4, 2011
To my knowledge even "AS IS" allows you have an inspection. The inspection usually is informational only. As far as renegiotating you can withdraw if the inspection results are unfavorable. You can always ask the seller for a lower price, but most times unless it is a health issue item the seller will stick to "AS IS". But you never have to take it. When the "AS IS" is because it is a short sale or foreclosure owned by the bank. If you want to proceed you have to take it in that "AS IS" condition. Usually no credit is given. The bank usually does not renegiotate any items unless possibly if the appraisal comes in too low. Then to get the home off their books. They may possibly reduce the sales price to the appraisal price. Without having all the details of the transaction. As long as you are working in the specified dates that "YOU" have put into the contract. You can always walk away.
1 vote
Don Fabrizio…, Agent, Danbury, CT
Tue Oct 4, 2011
Sam,

Being that Connecticut is an attorney state, speak with your attorney.
Your attorney will know exactly what was agreed to in the contract or binder, and wil lthen be able to advise you on your options.
Web Reference:  http://www.FabRealEstate.com
1 vote
Jennifer Dev…, Agent, Wallingford, CT
Tue Oct 4, 2011
You are purchasing the property "AS-IS" which means the sellers are not required to do any repairs or compensate you for any but if your offer was accepted with a home inspecion contingency then you have the opportunity to perform one. Once you have one and you find that those items are not in working condition some sellers may work with you on them but you do have the option of terminating your contract if they are not working. It depends on how your contract was written. I have sold quite a few bank foreclosures that are all "AS-IS" but always but in the contract a home inspection contingency for my buyers.
1 vote
Kmbrennan, , Florida
Tue Oct 4, 2011
Sam,
It is hard to give you a 100% accurate answer without actually having your contract in hand. That being said, you can always add a 10day inspection contingency to your offer. If it is refused then move on. There are a lot of great deals on homes in need of repairs - and often your financing will be dependant on these renovations taking place. The scope and cost of the repairs can and will make or break a deal for you -IE if it costs more to buy and renovate than to just purchase an exisiting comparable home in good condition it is probably best to not buy.
I do quite a bit of renovation lending. Feel free to contact me if you ha any questions.
Keven
1 vote
Kimberly Cam…, Agent, Trumbull, CT
Tue Oct 4, 2011
As long as you have an inspection contingency in your offer, you are covered.
so if during the inspection time frame, you find that something is not to your satisfaction, you can withdraw
from the deal.
You need an inspection contingency though and it must be done within the time frame stated and
if there is an issue which you need to withdraw, it must be in writing.

Kim Camella Roy
Re/Max Right Choice
1 vote
Christina Mo…, , Fort Myers, FL
Fri Oct 7, 2011
AS IS just means you acknowledge you are buying the home AS IS and WHERE IS.

On your contract, you should see a paragraph that explains your "Inspection Period". During the inspection period you are able to get your inspections done and be happy with the results. If you wanted to renegotiate or withdraw, it would be during that inspection period.

If your agent seem confused, maybe hire an attorney to read over your contract and better explain it.

Good luck to you!!
Christina Morabito
Realtor
Florida Future Realty, Inc.
239-849-8500
ChristinaMorabito@yahoo.com

“The opinions expressed herein are those of the author and/or commenters and may or may not represent the views of Florida Future Realty, Inc."
0 votes
Norman Jeffe…, Home Owner, Conyers, GA
Tue Oct 4, 2011
As is means As is. You can still inspect the property and all that is on it. That will cost you some but give you what you really want to know. And that is the true condition of the estate and what options you can pursue for investment. Generally speaking AS is deals are good ones especially if you have the know how to utilize your money to create the living space you want. Don't let this be an issue. There are others far more taxing as when your are informed of multiple offers and your highest and best purchase price is requested.

That was presented to me and I didn't budge a penny. I won the bid. Dont be concerned at all about walking away from a deal you don't like. There are plenty of excellent opportunities. Remember if first you don't succeed try-try again is better than the early bird gets the worm. (when has it ever rained early and only one worm was available??)
0 votes
Dorene Slavi…, Agent, Torrance, CA
Tue Oct 4, 2011
Dear Sam,

I very much dislike the term "as is" when I see this on a listing. This is an effort from the seller to discourage the buyers or keep them from asking for repairs...... But, we will anyway!

During the home inspection contingency period (normally 17 days) you can and should do as many different inspections as you want. Start with a comprehensive home inspection by a licensed professional. These can include electrical, furnace, roof and even mold and termite inspections.

You as a consumer are allowed (and advised) to have an inspection. The seller might say "as is" no repairs but...,everything in real estate is negotiable, so we will negotiate! For minor issues we can ask for a $500-2000 credit in escrow. For major issues, the sellers normally will understand and take care of the issue.

Bottom line, go ahead and have all your inspections, and make sure your offer is contingent upon what is revealed in them.
0 votes
Gunna Voigt, Agent, Shelton, CT
Tue Oct 4, 2011
Sam, "AS IS" means that the seller (individual or financial ilnstitution0 does not intend to make any repairs. You have the right to an ilnspection. Dueing the inspection period, generally 10 days, you then have the right to either withdraw from your offer or renegotiate. Thils may not always be possible, but it is worth trying.
You have an out within that period, but not later, so you must be diligent in discussing this matter with your family, your agent, and possibly your attorney. Sometimes, if you definitely want the property, but there are some larger repairs, you may wish to include your mortgage professilonal in the discussion, since there is generally the possibility to finance some of the repairs as part of your mortgage (203K or similar loan programs). If you need more time, you can even ask for an extension of your inspection period. But move ahead diligently. Sellers do not like to have to wait.. Good luck!
0 votes
Gunna Voigt, Agent, Shelton, CT
Tue Oct 4, 2011
Sam, "AS IS" means that the seller (individual or financial ilnstitution0 does not intend to make any repairs. You have the right to an ilnspection. Dueing the inspection period, generally 10 days, you then have the right to either withdraw from your offer or renegotiate. Thils may not always be possible, but it is worth trying.
You have an out within that period, but not later, so you must be diligent in discussing this matter with your family, your agent, and possibly your attorney. Sometimes, if you definitely want the property, but there are some larger repairs, you may wish to include your mortgage professilonal in the discussion, since there is generally the possibility to finance some of the repairs as part of your mortgage (203K or similar loan programs). If you need more time, you can even ask for an extension of your inspection period. But move ahead diligently. Sellers do not like to have to wait.. Good luck!
0 votes
Gunna Voigt, Agent, Shelton, CT
Tue Oct 4, 2011
Sam, "AS IS" means that the seller (individual or financial ilnstitution0 does not intend to make any repairs. You have the right to an ilnspection. Dueing the inspection period, generally 10 days, you then have the right to either withdraw from your offer or renegotiate. Thils may not always be possible, but it is worth trying.
You have an out within that period, but not later, so you must be diligent in discussing this matter with your family, your agent, and possibly your attorney. Sometimes, if you definitely want the property, but there are some larger repairs, you may wish to include your mortgage professilonal in the discussion, since there is generally the possibility to finance some of the repairs as part of your mortgage (203K or similar loan programs). If you need more time, you can even ask for an extension of your inspection period. But move ahead diligently. Sellers do not like to have to wait.. Good luck!
0 votes
Marc White, Agent, Charlotte, NC
Tue Oct 4, 2011
Sam, depending on what your contact states, you may have the ability to renegotiate or walk away. The verbiage, "AS-IS", really has nothing to do with your offer. It just means that the Seller does not intend to make any repairs. In most contracts, you have a certain time frame to inspect the property, and usually you have the ability to walk away if the property does not mean your needs (meaning the repairs are too costly for you, etc). Read over your contract to find out what you have rights to, or contact your attorney for guidance.
0 votes
Sandy Cleland, Agent, Edina, MN
Tue Oct 4, 2011
Without seeing your offer it's hard to say, but typically even with "AS IS" properties you are allowed an inspection period and you would be able to renegotiate (perhaps) or back out. Even bank-owned and short sale properties allow an inspection time period if you request it. From your comments above, it doesn't sound like you had an inspection contingency, so your agent may be correct that you can't back out. However, if your agent is representing you, he/she should have made it clear what you were agreeing to.
0 votes
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