|By: Joe And Colleen Lane|
"As is" means exactly what is says, what you see is what you are buying. Basically the seller isn't planning any work to fix up, clean, or repair any damages that exist. There are many instances where selling "as is" is the best option. There are also times when a seller should rethink their intent for selling with such a title.
If you are selling you home "as is" simply to avoid the liability of having to disclose the defects in a building before selling, you should seriously rethink. Sometimes shady brokers insist on this trick, run the other way!
You must understand as the seller that while selling "as is" means you get what you see, it doesn't mean the buyer gets what he can't see. Complete disclosure is still required. Selling "as is" doesn't interfere with the requirement of disclosure. Normally the words "as is" are written boldly in the sales agreement and are initialed by the buyer so no one can later claim they didn't know.
If you are selling your property "as is" it is important to understand that selling "as is" refers to warranty, not to disclosure. Simply, if you sell "as is" but fail to disclose all of the defects, you will likely be in hot water. You could end up paying for total repair of any undisclosed defects.
The major pro to selling you home "as is" is that the seller doesn't have to deal with a problem that is so overwhelming, or expensive. Another upside is that it attracts buyers from all angles, whether it is an investor looking for a fixer-upper, or a low-income family looking for a great deal.
Purchase an advertisement in the local paper and note you are selling your property "as is." Also expect to receive many low ball offers.
Just as there are pros, there are also cons to selling your home "as is." The main reason people invest money into an "as is" property is because they can usually expect to get a great deal on the home initially. You are almost never going to get the full asking price for an "as is" property; buyers want to be compensated for the fact that they won't have any sellers insurance on the property.
There are a few sellers who will cover the crack in the wall with a little glue and paint, and hope it holds up. Be especially cautious for these types of sellers.
Buyers tend to be more suspicious of a home that is listed "as is." They think there is something that you aren't telling them, and even after they buy it, are still looking for things to be wrong that they didn't see before.
In many cases you will save more money by fixing the problem before you put it on the market. The amount you spend on repairs is usually significantly lower than the discount you will be forced to give a buyer.