Archive for the ‘Buyers’ Category

THE TRUE MEANING OF “AS-IS”
November 10, 2015

“AS-IS”: To Sellers, it means a quick and easy escrow after negotiating only once with a Buyer. Buyers, on the other hand, think it means they are getting a smoke-smelling cosmetic fixer with 70’s green shag carpeting and 80’s ivy-print wall paper for a decent price. At the time a contract is accepted by all parties, the chances are minimal that the Buyers have seen the Seller’s disclosures, let alone know the secrets of the house.
When Buyers exercise their legal right to do inspections of the property (and they usually do), they often walk away with a much-changed perspective of the dream home they thought they were buying. What is a Buyer to think when the Seller says there is no problem with the roof, only to have the inspector reveal that besides water stains on the rafters, there are pots and bowls set out in the attic surrounded by towels? (Yes, this happened.)

Leaking-Roof1
What about issues that even the Seller may be unaware? Broken sewer lines, unsafe fireplaces, and compromised electrical systems are often discovered in these inspections. What would anyone’s reaction be to learning that the firebox in the furnace is cracked?
Most of the concerns of Buyers have to do with health and safety issues and code violations. Even if the Seller has lived with these issues for years, the Buyer may not wish to test their luck. They may have been ready to tackle paint and flooring, but not have the funds to remove asbestos ceilings or correct serious code violations. However, with some concessions by the Seller, the Buyer may be willing to continue in the transaction. This will mean another round of negotiations where the Sellers need to stay focused on their ultimate goal and what is in their best interest to reach that goal. Sometime a $500 or even a $5,000 concession is better than starting the whole process over again with a new Buyer. By the way, the Seller will need to give any inspection reports or quotes received from the previous Buyer to the new Buyer.

Rich and Jan McMillen
www.TOHomes.com/