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What does selling your home as-is mean?

Ursula Butler

Ursula Butler has been one of the top REALTORS in Cherokee County since she began selling real estate in 1996.

Feb 7 4 minutes read

“I’m Selling My Home "As-Is"… Why is the Buyer Asking For Repairs?”

Ironic!  You tell your real estate agent that you want to sell "as-is" and that you are not interested in doing any repairs or alterations to the home you are selling.  You want the buyer to take care of anything that is needed to be done, as you are ready to move on.  You decline to order any pre-list inspections.

You receive an offer and your agent presents it to you. They have a financing and appraisal contingency and a due diligence period. It is the price you want, and the terms are good as long as they agree to it being an as-is sale. You accept. 

After the contract is accepted, the buyer must do their due diligence.  They inspect the property.  The buyer’s agent recommends a home inspection and a termite inspection.  The buyer agrees with their agent, and gets the inspections completed during the due diligence time period. 

The buyer discovers over $10,000 in damages… 

In their inspection they discover many things wrong with the property that they were not aware of when they wrote the offer.  They didn't know about the the dry rot, the termite infestation, the rodents in the attic, the electrical issues and the crack in the foundation.

You again remind your agent that you are selling as-is, and you do not want to fix anything AND you correct, you are not required to fix anything....  However, the buyer has the right to terminate the contract for any reason during due diligence.  It has been ten days, and we are two weeks away from closing.  The buyer is not comfortable with the damage that they discovered after writing their offer.  So the buyer asks the seller to fix the damages, or give him a credit so they can fix it after the closing.   

You can accept the buyers request (or negotiate a lower amount), or you can say no and risk the buyer walking…  Yo only have 2 weeks until closing.  Can you risk putting it back on the market and getting the same offer?  If you put it back on, it will look like an old stale listing, and you may not get an offer at the same price.  If you accept, you close in two weeks.   

Moral of the story.  As a seller, have your inspections done up front…  AND disclose any defects you find and are aware of to the buyer.   That way, the buyer knows everything about the home, and you are less likely to have the buyer negotiate repairs or ask for price adjustments during the due diligence period.   The biggest reason sales go sour is because buyers often discover something during due diligence that they did not know about when they made an offer.

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