You have possibly heard the phrase, “Home is being sold AS IS”.
This has an underlying meaning that the home seller is not going to entertain any repairs or credits for items discovered related to the home which the buyer is buying.
So, don’t bother asking for any when that times comes in escrow.
Did you know that all real estate in California is sold “AS IS”?
This is an excerpt from the California Residential Purchase Agreement. This one of the items which a buyer signs when making any offer on residential real estate. This is part of the offering contract for California real estate:
Unless otherwise agreed in writing: (i) the Property is sold (a) “AS-IS” in its PRESENTphysical condition as of the date of Acceptance and (b) subject to Buyer’s Investigation rights; (ii) the Property, including pool, spa, landscaping and grounds, is to be maintained in substantially the same condition as on the date of Acceptance; and (iii) all debris and personal property not included in the sale shall be removed by Close Of Escrow.
Therefore, AS IS should not indicate a problem or issue that the seller knows about and that they buyer will discover somewhere down the road. AS IS is how homes are sold, unless otherwise negotiated beforehand or agreed to in writing.
Of course, you don’t know what you don’t know before you start inspecting the property you are going to buy. I would say that most home sellers are negotiable. They are not hard liners when it comes to asking for items to be repaired. Especially the items which are health and safety in nature. However, when approaching real estate always consider the home you are buying as being sold “AS IS”. This will make your offering better out of the gate. Never assume the seller is going to do anything more than let you buy their home.
OMT – if your agent is telling you that “AS IS” is something to be weary of and to watch out for, remind them of the contract. AS IS is nothing to be freaked out about!
BE safe – reach out to me when you are ready and I’ll take great care of you.