Buyers usually become concerned when the listing report indicates that a home is being sold “as is.”
The term often prompts the buyer to ask – what is wrong with the property? The fact is that the standard verbiage in the Colorado approved contract indicates that every property is being sold “as-is.” So why do some sellers and/or their agents include the term when marketing the property? They typically use the term to convey to the buyer that the seller is not willing to make any repairs to the property.
When an offer to purchase a property is made on the standard contract, the verbiage indicates that the sale is “as-is” and the seller is not obligated to make any repairs that the buyer requests or the buyer’s lender requires. If a buyer wants repairs completed as a condition of the purchase, his or her agent should list the specific repairs in the contract, which would then require the seller to make those repairs prior to closing.
The standard contract contains a number of contingencies that allow the buyer specific timeframes to investigate the condition of the home and other matters after the contract is signed. One of the contingencies is the inspection objection.
Sometimes a home inspection reveals conditions that weren’t apparent when the buyer viewed the home. The buyer can request that the seller makes repairs by the deadline; however, the seller is not obligated to fix anything. This also applies to repairs required by the buyer’s lender. However, they can decide that they will make repairs. The buyer’s only recourse if the seller refuses to make satisfactory repairs is to terminate the contract and request a return of his or her earnest money.
Coming to agreement on repairs are a typical second set of negotiations associated with the purchase of real estate. Normally, sellers are willing to agree to reasonable requests to repair items involving health, safety and/or systems/components that most buyers would expect to operate on a home, unless the seller indicated up-front that he or she was unwilling to make any repairs.
Buyers should be judicious when requesting repairs; if you ask for everything listed on the inspection report to be repaired, the seller may consider your request unreasonable and refuse to repair as much as they would if they considered the initial request reasonable. Buyers should avoid asking for repairs of conditions that were evident when viewing the property. Examples are asking for new carpet, paint or windows. If the replacement or repairs of obvious conditions are important to the buyer, they should be included in the initial contract, not in the inspection objection. In summation, buyers should carefully consider the condition of the home and discuss any concerns about the condition with their agent before making an offer.
Steve Setka is an exclusive buyer’s agent with Keller Williams Realty in Durango and a licensed mortgage originator. He can be reached at 903-7782 or firstname.lastname@example.org.