Dear
Pat,
Our neighbors, good friends for many years, sold
their house last year. They had no apparent
problems in their basement, and never mentioned
any water damage to us. Yet now we hear the
buyers want to sue because water has seeped into
a corner. This seems like a frivolous and greedy
attempt to avoid normal house repair. We are
planning to sell next year, and don't want this
to happen to us. Can't we sell the house
"as-is?" ---- Old Fashioned
Dear Old Fashioned,
I read into your letter a certain wistful
longing for the "as-was" days, the
days when "personal responsibility"
was more a value than a self-improvement phrase;
when your word, and your handshake, counted for
something; when you could close the sale of your
property with six forms instead of thirty. (OK,
maybe it's just my own wistful longing!) But I
fear an "as-is" offering nowadays will
only cloud your honorable intentions and create
an atmosphere of suspicion, resulting in
ever-so-picky inspections and a possibly lower
price.
An "as-is" sale
typically occurs when the seller has not lived
in the house, and thus cannot be expected to
warrant its condition. Common examples: a
property is sold by heirs, or by a third-party
relocation company. In these cases buyers need
to rely on their own powers of discovery, as
well as a good professional home inspection. The
inspection contingency allows the buyer to make
objection to defects, and to cancel the purchase
agreement or renegotiate, if the seller is
willing. |
 |
 "As-is"
purchase agreements are no different than
seller-warranted agreements in this respect.
After the inspection contingency is removed
(often repairs are agreed upon, or the contract
renegotiated) the property is sold in
"as-is" condition, meaning the buyer
has no recourse after closing. In my experience,
the seller usually ends up paying for the
privilege of an "as-is" sale.
So my advice to you, Old
Fashioned, is to go forth bravely into a
seller-warranted sale and take your chances,
just like the rest of us. The odds are good, by
the way, if you answer the seller's disclosure
honestly and thoroughly: in nearly a thousand
transactions, I'm aware of only four instances
when buyers sought compensation after the sale.
Truth is, most people still live by
"as-was" values.
| Pat
Rosaves is a full-time real estate
professional living in the Seward -
Longfellow area. She has more than 24
years experience in helping people with
their real estate needs. Questions may be
sent to her at River Realty, 2543 38th
Avenue South, Mpls, MN 55406. Or call her
at 612-724-1314 or email her at
pat@riverrealty.net
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