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Wednesday, October 13, 2010

"As Is" Misconceptions

Realtor, Layman Definitions

To home sellers, "As is" usually means that they're not going to do any updating or staging to get ready for market.

So, the dated carpet, scuffed hardwood floors, and out-of-fashion interior paint . . . are going to remain dated, scuffed, and out-of-fashion.

All fine, by the way -- as long as the price reflects those things.

Realtor Definition

By contrast, "As is" to Realtors means something entirely different.

Namely, that the Seller is waiving the disclosure requirements, and that the Buyer is assuming responsibility for any and all needed repairs -- of which there are usually several (if the Seller knows of material problems, they're still obliged to tell Buyers).

That's in addition to the Buyer assuming responsibility for any items ("repair or replace") required by the city inspection, if the municipality has one.

To take the risk, time, and money to address these problems, Buyers understandably expect a hefty discount.

Guilt by Association

Which is why Sellers whose homes are dated but are otherwise in good repair are usually ill-advised to sell "As is."

Instead, it's almost always in their interest to tackle any minor repairs, complete the Minnesota Seller's Disclosure . . . . and then let the home's condition speak for itself, without the stigma of selling "As is."

P.S.: selling a perfectly good (but dated) home "As is" is like electing to take a college course "Pass/Fail" when you would have gotten an "A-" (something I actually did years ago, which says more about the (fluffy) course than it does about me).

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