If a home seller says "home is sold as is" is that a good thing?

[wit-nit]

Originally Posted by Greatday

I'm sorry but, the above is not correct. There is no statutory requirement to do so. Don't misunderstand, a property owner has an affirmative obligation to disclose MATERIAL defects but, there is not form requirement

RESIDENTIAL
SELLER’S PROPERTY DISCLOSURE STATEMENT (SPDS)
(TO BE COMPLETED BY SELLER)
THE PRINTED PORTION OF THIS FORM HAS BEEN APPROVED BY THE ARIZONA ASSOCIATION OF REALTORS®. THIS IS NOT INTENDED TO BE A BINDING CONTRACT.
MESSAGE TO THE SELLER:
Sellers are obligated by law to disclose all known material facts about the Property to the Buyer. The SPDS is designed to assist you in making
this disclosure. If you know something important about the Property that is not addressed on the SPDS, add that information to the form.
Prospective Buyers may rely on the information you provide in deciding whether and on what terms to buy the Property. If you don’t know the
answer to a question, mark “unknown”.
MESSAGE TO THE BUYER:
The information contained in the SPDS is a disclosure of the Seller’s actual knowledge of the Property and not a representation of every possible
defect nor a warranty of any kind. You should confirm any information you consider material to your purchase and consider obtaining a professional
home inspection, which may reveal information about the Property that even the Seller did not know.
THE FOLLOWING ARE REPRESENTATIONS OF THE SELLER(S) AND ARE NOT THE REPRESENTATIONS OF THE AGENT(S), IF ANY. THIS INFORMATION

[Greatday]

Originally Posted by nitram

RESIDENTIAL
SELLER’S PROPERTY DISCLOSURE STATEMENT (SPDS)
(TO BE COMPLETED BY SELLER)
THE PRINTED PORTION OF THIS FORM HAS BEEN APPROVED BY THE ARIZONA ASSOCIATION OF REALTORS®. THIS IS NOT INTENDED TO BE A BINDING CONTRACT.
MESSAGE TO THE SELLER:
Sellers are obligated by law to disclose all known material facts about the Property to the Buyer. The SPDS is designed to assist you in making this disclosure.

And, I said the same as you highlighted - I said there was not a REQUIRED FORM to do so

The SPDS is to assist

The SPDS is not MANDATED

[Huckleberry3911948]

Originally Posted by James Brown

what are your thoughts on this?

I think its great to protect the seller, but i think that become a red flag to the buyer.

name of the game is disclosure.
stephen

[Elmonellie]

If you are looking at a house sold "as is" you need a lawyer. Best money you will ever spend. I think EVERYONE needs a lawyer to look over a real property deal.

An "as is" advertised property is not perfect. In this market it could be a real steal.

This kind of property is not for someone wanting a perfect house. It is a bit of a gamble and you get a much reduced price for gambling.

There are sooooooooooooo many new, nearly new houses out there if you don't want headaches with fixing up. If you buy an "as is" don't cry after you buy it that it isn't perfect.

On the plus side, this is how I make my living, and I love buying "as is". Especially in this market. Sometimes you can buy a run down house in a great area (well, imho a future great area) and sell the land a few years later and make double your money.

If you are a young couple with a small income and want a nice neighborhood and home for kids... probably not a great idea. Too many headaches.

If you are looking to make some $$$ and have a feel for real estate....great idea.

[LadmoFan]

I live in California which may have different requirements but most homes sold "as is" means the property owner disclaims responsibility for repairs.

Buying an "as is" home maybe a good deal, if you put contingency clauses in your contract, and have a building inspection (checking for heating, cooling, plumbing) done, termite and roof inspection performed before the purchase is completed. That way you know what is potentially wrong with the property.

As always, consult a real estate attorney for all transactions.

LadmoFan

[Greatday]

Originally Posted by Elmonellie

If you are looking at a house sold "as is" you need a lawyer. Best money you will ever spend. I think EVERYONE needs a lawyer to look over a real property deal.

An "as is" advertised property is not perfect. In this market it could be a real steal.

Just an FYI - in the State of Arizona, it is rare - not unheard of, but VERY rare to have an attorney involved in a residential real estate sale. And, 10's of 1000's of transactions close with not one single problem

As for the "As Is" issue / question: Some properties being sold today are "REO's" (real estate owned) - they are foreclosed properties, now owned by a mortgage company / lender. Many of these properties are 1, 2 or 3 years old. Some are still actually under builder warranties. But, these lenders have no personal knowledge of the condition of the property. Hence, the "As Is" sale

When we see this type of situation, we will STRONGLY advise a buyer to get a comprehensive property inspection - from a highly qualified inspector. This will help disclose any potential issues with the property. Many of the purchase contracts used today (in AZ) allow the buyer an opportunity to review these reports and, to unilaterally cancel the contract if the property is in bad condition.

Frankly, I would not be at all "turned off" by an "As Is" property if I were purchasing it myself.

[LadmoFan]

Nor would I as long as I had a thorough house inspection done. And we have never used a real estate attorney, I live in a small town so everybody knows everybody LOL, so you don't need one. But I would advise using an attorney as it is the conservative way to complete business transactions. We have bought and sold two houses in 30 years, our current house is nearly paid for, and our next house will probably have a large down payment. Would love to pay cash but our house selling price can not compete with Phoenix selling prices.

LadmoFan

Originally Posted by Greatday

Just an FYI - in the State of Arizona, it is rare - not unheard of, but VERY rare to have an attorney involved in a residential real estate sale. And, 10's of 1000's of transactions close with not one single problem

As for the "As Is" issue / question: Some properties being sold today are "REO's" (real estate owned) - they are foreclosed properties, now owned by a mortgage company / lender. Many of these properties are 1, 2 or 3 years old. Some are still actually under builder warranties. But, these lenders have no personal knowledge of the condition of the property. Hence, the "As Is" sale

When we see this type of situation, we will STRONGLY advise a buyer to get a comprehensive property inspection - from a highly qualified inspector. This will help disclose any potential issues with the property. Many of the purchase contracts used today (in AZ) allow the buyer an opportunity to review these reports and, to unilaterally cancel the contract if the property is in bad condition.

Frankly, I would not be at all "turned off" by an "As Is" property if I were purchasing it myself.

[mortimer]

Wouldn't any house that has had a home inspection done
become an as-is house?

Once the inspection was done, a buyer could estimate the
cost of repairs and decide for themselves whether the house
was worth it or needed to be discounted for some repair.

An as-is house doesn't preclude a home inspection or disclosure
or getting a home warranty.

Once you buy a house, it becomes an as-is house unless it is
later determined that a material disclosure has been omitted.

[LadmoFan]

I love playing with words as it keeps the old noodle challenged. An "as is" house, at least in California, is sold to the buyer who is willing to take the risks of purchasing a home that may have defects. Some maybe serious defects. This maybe a moot point, at least for here, as I now believe the seller is required to state all known defects when selling a house. This may include disclosing whether the house is haunted, I am not sure about this, but I think it is now state law here. I haven't bought or sold a home in over 20 years, so I could be wrong.

Having an "as is" house thoroughly inspected is standard practice here too. The roof, plumbing, heating and air conditioning all must be inspected. A termite inspection is also required. Even if these things were not required, I feel a smart buyer would have this done so they knew what they were getting for the money.

Some folks don't mind purchasing a fixer upper while others would rather not.

LadmoFan

[Greatday]

Originally Posted by mortimer

Wouldn't any house that has had a home inspection done become an as-is house?

Not in the State of Arizona

Originally Posted by mortimer

Once the inspection was done, a buyer could estimate the cost of repairs and decide for themselves whether the house
was worth it or needed to be discounted for some repair.

If the purchase contract is the Az Assoc of REALTORS form, the buyer, after an inspection, has some options including (but not mandated) asking the seller to do certain repairs. This would be done in the BINSR (Buyer Inspection Report). If the seller refuses repairs, then the buyer can a) accept the property without repairs, b) ask for compensation c) immediately cancel the agreement

Originally Posted by mortimer

An as-is house doesn't preclude a home inspection or disclosure or getting a home warranty.

You are correct