When "As is" Really doesn’t mean as is.. important read for Buyers, Sellers, For Sale By Owners, Realtors and others: Don’t let this happen to you!
When an inspection is ordered by the buyers bank, be sure you know what you’re up against, especially a government assisted loan.
Case in Point:
Buyer agrees to buy the (non bank owned/not a short sale) property “as is, where is”, heat works, plumbing is okay, home inspection is satisfactory. .. then.. without warning.. the bank wants the property inspected by a third party.
Here comes the dread:
Safety issues are found.. bank’s inspector will not allow a closing until
the floor trip hazards are fixed, , rust on the furnace, water under the furnace, a plumbing leak, chipped paint and other “small” items.
Seller makes all fixes according to what the bank mandates, the day before closing, bank re-inspects, and the property fails..bank wants the seller to replace the floors in the entire home! So here we go again!.. now what?
And.. the buyer buys all new fixtures for bathroom, home improvement items etc..
Yes this happens. Thousands of potential dollars more spent on fixes on a property priced at a below market price. . was suppose to be “as is”. .
Seller and Buyer must know way before an offer is submitted that “as is” isn’t necessarily “as-is”.
Seller should have a thorough home inspection prior to listing the property and make all recommended repairs regardless of the asking price.
Protect your clients and give them a list of all things that can go wrong prior to submitting or accepting an offer on a property.
Keller Williams Realty