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Homes sold "As is".

lannypoffolannypoffo
edited December 2007 in Seattle Real Estate
I've recently noticed an increase in the number of listing with "Home sold as is." As I am pretty much a home buying looky-loo and not a real purchaser at this juncture, I am curious if there is any specific meaning to this? Is there any difference between an ad that states "As is" versus an ad that doesn't state "as is"?

Thanks,

Lanny

Comments

  • deejayohdeejayoh
    "As is" generally means that the seller won't accept an inspection contingency. Which generally means they either
    a) think they've cut their price as low as they will go so won't be fixing anything
    b) need to get out ASAP so don't want any contingencies
    c) all of the above
  • SeattleMooseSeattleMoose
    "As is" could be any or all of a number of problems:

    1) seller is already "underwater" and cannot afford to put another dime into the property but who offers full disclosure to the buyer of any known problems (with the selling price discounted accordingly).

    2) seller is trying to make a fast sale and may or may not be aware of all the problems but regardless, there is no mention of any problems.

    In either case make sure you get a well recommended inspector (of YOUR choice) to checkout electrical, appliances, structure, plumbing, roof, foundation, drainage, septic function/level, as well as any pending right of way claims, new construction (e.g. race track) in adjacent lots, etc.

    The point is with a "as is" they are telling you they are not gonna negotiate on "fixes". Once your inspector has a list of fixes the only option then is to lower the price by estimated cost of repairs. As far as pending changes in the neighborhood that could devalue the property, best to check with people who live there to see if any changes are planned. RE agents are supposed to be plugged into development activities so they should also disclose if they know of any pending changes in the neighborhood.

    Don't be left holding the bag..... :wink:
  • RottedOakRottedOak
    "As is" is a standard disclaimer for bank-owned properties. As foreclosures increase in the area, you'll see this a lot more.
  • pumpkinpumpkin
    I've viewed a few "as is" houses in the last year, and it seems to me to be code for "trashed rental property that the landlord is eager to offload."
  • femtofemto
    As RottedOak pointed out this is standard terminology in listings for foreclosed properties that are now being sold by a bank. These are sometimes called "REO", which stands for "Real Estate Owned". Many banks keep lists of them on their own websites:

    Countrywide:
    http://www.countrywide.com/purchase/f_reo.asp

    B of A:
    http://bankofamerica.reo.com/search/
  • deejayohdeejayoh
    RottedOak wrote:
    "As is" is a standard disclaimer for bank-owned properties. As foreclosures increase in the area, you'll see this a lot more.
    I was under the impression that REO's generally are not listed on the MLS - but are sold directly by the bank. I think it's true that they're sold "as is", but I don't think you'll find them on the MLS
  • femtofemto
    deejayoh wrote:
    I was under the impression that REO's generally are not listed on the MLS - but are sold directly by the bank. I think it's true that they're sold "as is", but I don't think you'll find them on the MLS

    Many aren't, but some are, e.g. the unit downstairs from me. I think it hinges largely on how marketable the property is--if it's a burned out husk that only a serious investor would buy they probably won't bother to MLS it, but if it's in good shape and salable they hire an agent and it's marketed just like any other property.
  • femtofemto
    Here's an example from Countrywide's REO list:

    http://www.redfin.com/stingray/do/print ... id=1099578
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