Submitting an "As-Is" Offer to get the House of your Dreams!

Are you finding it difficult to purchase a home in the current “seller’s market”? Do you keep getting caught up in bidding wars or running into similar hurdles that are keeping you from your happily ever after? Perhaps it is time that you consider sweetening your offer by adding an “as is” provision to your offer.

Currently, this is a seller’s market. Inventory is low and demand is high, there are more people looking to buy than there are houses for sale. Sellers have options and they’re looking at every detail of every offer to find the best deal for them. They are scrutinizing everything from the earnest money to the closing date to the loan companies. It’s critical to ensure that every part of your offer is the strongest it can be.

To avoid competing against multiple offers and bidding wars, you need to know how to make your offer stand out from the others. One solution you should consider is making your offer an “as is” offer. “As is” is a provision you add to your contract that indicates your willingness to buy the property in its current condition. You are agreeing to take the property in the state it was in when you did the walk through and made your offer. You won’t ask the seller to make any repairs or warranties.

Just because you submit an “as is” offer doesn’t mean you have to skip an inspection. You don’t have to go into buying the house completely blind, you can still have an inspection done. If the inspection shows that there is much more wrong with the house than you thought, you can still choose to not move forward with the purchase. The “as is” provision is stronger because the seller doesn’t necessarily have to do any of the repairs indicated in the inspection report so your offer might be preferred over another.

Actually, even if you submitted an “as is” offer, you can still ask for repairs to be done. The sellers might agree, especially with minor issues, but they can say no without it affecting the sale. However, if the inspection shows that the property isn’t in the condition that you want it to be in, you can still cancel the contract and get your earnest money back.

Also, if there are any discrepancies in the real estate property disclosure form you can also cancel. The seller always has a legal obligation to honestly and accurately complete the disclosure. They must disclose any and all known conditions on the property. Even if there are no warranties or no repairs, that doesn’t mean that the seller gets out of their obligation to disclose the information.

Reviewing the seller’s property disclosure and having an inspection should both give you an idea of what’s going on with the property. Looking at the Multi-board Residential Real Estate Contract 7.0, Section 36 covers “As Is Condition”. This section clearly states that “In the event the inspection reveals that the condition of the real estate is unacceptable to the buyer and the buyer so notifies the seller within five business days after date of acceptance the contract shall be null and void.” You are not locked into a purchase, even if you made an “as is” offer.

Note that within Section 36 it also states that “The warranty provisions of Section 3 do not apply to this contract.” Section 3 is where the “seller warrants to the buyer that all fixtures, systems and personal property included in this contract shall be in operating condition.” As indicated in Section 36 this won’t apply if you make an “as is” offer. However, your inspection report should tell you whether or not the systems and fixtures are in operating condition, so you have some reassurance there.

In addition to relying on the property disclosure and the inspection, you can also choose to purchase a Home Warranty that can cover the systems and appliances in your new home. Depending on the company and the type of package you purchase, most Home Warranties can be bought for up to $600.00.

I really hope this information helps you in your journey towards home ownership. The Law Office of Alexis Hart McDowell wants to help you get into the home of your dreams. Please contact me to schedule a 15-minute consultation. Also, I have a special download for home buyers that addresses the top five home buyer concerns. We look forward to working with you to get the home of your dreams!