Does “As Is” REALLY Mean Exactly as it is?
Economic downturns
Throughout the course of my career in real estate, I have weathered several economic downturns. Each time there is a backlash of foreclosure market business, which isn’t necessarily a bad thing (especially if you are an investor).
I have been on both sides of representation, both working with the lenders as an REO agent and as a buyer’s agent for buyers looking for a deal.
Every bank owned property is listed in “as is, where is” condition. The lenders intend that the buyer should be aware that any inspections or investigation of the property is for edification only and will not result in repairs or compensation.
Lenders WILL participate
While it is true that most lenders will not participate in any form of credits at closing, it has been my experience that they WILL in fact participate in repairs to the property when asked.
I understand that every state has different laws and procedures, so this is just my experience in Massachusetts. Please contribute via comments on your state and the practices that you have experienced.
Especially over the last year and a half it has been my practice to at least ask for inspection items on foreclosure transactions and I have yet to be turned down.
Surprised? I was!
For example: a home in Springfield, MA that my buyer was purchasing had carpenter ants, plumbing issues and a broken window. The buyer was a single woman buying her first home and wasn’t comfortable with acquiring these repairs. After informing her that the bank had disclosed their “as is” standing, she asked me to submit a request for all of the items to be repaired prior to close.
I was certain that we would get a negative response to most if not all of the requests. Imagine my surprise when they said yes to all!
My point here is that it doesn’t hurt to ask. Inform your client that it is a long shot and that they will most likely say no, but submit the reasonable requests that you would submit on any other transaction. Then come back here and share with us if your experiences match mine!
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This article published on Friday, September 18th, 2009 at 10:22 am | Contact the editor
Topics: Economy, Real Estate
About this Columnist (Full Profile)
Lesley offers 21 years experience in real estate, public speaking and training. Lesley has a degree in communications and was the recipient of an international award for coordinating media in real estate. In the course of her career Lesley has presented at international real estate conferences and state REALTOR associations, hosted a real estate television program, written articles for trade magazines and created marketing and PR plans for many individuals, companies and non-profits.
Email Lesley Lambert
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- Weekly summary of real estate news, Memphis comments, and other interesting stuff – September 23rd | Memphis Real Estate Buzz:
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- AgentGenius:
does "as is" REALLY mean "as is"?? story by @lesleylambert written long ago but still valid today: http://cot.ag/gl8uK4
Benn Rosales
Conal Campbell
Elijah May
Lani Rosales
Tara Steele
Marti Trewe
Charlene Jimenez
Wonderful to learn about the power of asking! After all, there’s nothing to lose in this type of situation.
Lesley, we have had banks make repairs too. Not all the time but some of the time. No harm in asking.
So you want to buy a foreclosure home? Does "as is" really mean "as is"? http://bit.ly/4imr1R
Lesley,
Whenever we deal with a bank/lender we know and that’s local they will generally do it. But it’s good to know that it’s worth asking outside lenders too.
Thanks for the info and do that from now on……
#twitterqueens I would love your input here: http://bit.ly/ybZRU
@LesleyLambert Aaaaaaaahhhhhhhh There it is on AR at last! http://bit.ly/TtUau
Does “As Is” REALLY mean exactly as it is?: Dont be stingy with your thoughts- stop by and comment!T.. http://bit.ly/SvDYx
Don’t “ASK”, you don’t “GET”. Can’t hurt. If the answer is “no”, you’re simply in the same place you were before, no harm, no foul.
Cheers.
AgentGenius: Does “As Is” REALLY mean exactly as it is? http://bit.ly/qw67v Full http://bit.ly/sFmT0
"Does As Is REALLY mean exactly as it is? | Real Estate Opinion …" http://tinyurl.com/mbqku2 …
From the RE.net – Does “As Is” REALLY mean exactly as it is? | Real Estate Opinion MAG – AgentG.. http://bit.ly/29Q3ol
RT @LesleyLambert: My linky is all fixy now: did you read my blog on "as is" sales in foreclosures?[Just did, very good] http://bit.ly/TtUau
Will banks make repairs even when they offer "as is"? http://tinyurl.com/mbqku2
http://www.arborseo.com Does “As Is” REALLY mean exactly as it is? | Real Estate Opinion … http://bit.ly/n5WWJ
In GA, our contracts are all as-is unless you include the financing contingency, appraisal contingency, right to request repairs, and anything else you are interested in.
We use a Due Diligence period, either along with those contingencies or w/o those contingencies. Whatever makes sense.
The best way to think of as-is in GA is that it may be as-is, but you still get the opportunity to do all the inspections to determine what as-is IS!
Then, you can ask for repairs, etc., but the seller is under no obligation to address them. If they don’t and they are deal breakers, you simply terminate the contract under the due diligence clause.
That’s GA anyway. Pretty simple.
Rob in Atlanta
Thanks for your input everyone! It is always good to be pro-active, IMHO!