- What is the definition of "as is"?
In recent months, I have noticed more "as-is" sale transactions in which sellers are unwilling to make repairs. I have had two such unexpected experiences in the past month, both with homes on the market for more than seven months. This is a reflection of our current seller's market.
So what does it mean for buyers? If the home is being sold "as-is," it typically means the seller is not willing to put additional time or money in the house. This doesn't mean it's a bad deal or that they're hiding something. Buyers can still make informed decisions by reading the seller's property disclosure statement and getting a home inspection.
The seller is required to fill out that disclosure form on the condition of the house. This is helpful, but keep in mind that homeowners are not always aware of all issues. Furthermore, if the property is a foreclosure or new construction or sold by a government agency, the seller can file a disclaimer and choose not to disclose the info. The home might still be in great condition, but only a home inspector can say.
An important item to note: when a home has been on the market for an extended period of time it's often due to overpricing and not necessarily the condition. It's also possible there were previous offers that had home inspections completed. It's always a good idea to ask if the seller's initial property disclosures were updated to reflect the findings of the inspection report. Sometimes you can save time by trying to obtain through the listing realtor.
When a real estate sales agreement is prepared by a realtor, the form has a section for an inspection contingency. Most buyers choose to have a professional inspection completed by a licensed professional home inspector within this time period. Based upon the results of the home inspection report, the buyer then decides whether to move forward. Then buyers can submit a repair addendum requesting the seller to correct major items. Typically, sellers will repair major issues or credit the buyers.
In our current low inventory seller market, we are seeing more sellers refusing to do repairs. Buyers need to decide how important those repairs are and if they wish to proceed with the purchase, and to remember that they are still entitled to making an informed decision.
723 NE 11th St., Bend, OR 97701
3 beds, 2 baths, 1,566 square feet, .12 acre lot
Built in 1956
Listed by CORE Real Estate Services
61401 Elkhorn St., Bend, OR 97702
4 beds, 3 baths, 1,681 square feet, .15 acre lot
Built in 1996
Listed by Coldwell Banker Morris Real Estate
3668 NW Cotton Pl., Bend, OR 97703
4 beds, 3.5 baths, 4,025 square feet, .55 acre lot
Built in 2006
Listed by Coldwell Banker Reed Bros Realty