Market Wise Q&A: The "As-Is" Negotiating Gambit
Pat Kapowich for the San Jose Mercury News Q: We are about to list our home for sale and my husband insists on adding "As-Is" to the marketing material. The listing agent we hired is trying to tell my husband that it is not a good idea to advertise the "As-Is" slogan, especially for a house in fair condition. Can the "As-Is" concept be properly introduced to the listing and sale of our home?
A: Listings agents are hired to negotiate on behalf of their seller clients. Using the "As-Is" term is like waiving a red flag in the listing of your home. Your agent will unnecessarily negotiate from a position of weakness with fewer interested parties over a longer period of time; all of which results in an eventual offer being of buyer-friendly price, terms and conditions.
Conversely, an astute listing agent can verbally remind the buyer's agent that adding "As-Is" can improve the chances of their offer being accepted. That way the buyers through consultation with their agent can decide to include the "As-Is" clause in their offer, which is a negotiating gambit, one they own since it was their decision. Letting your listing agent negotiate from a position of strength by eliminating the "As-Is" from your listing will result in stronger offers, smoother transactions and fewer days on the market. Your husband needs to be reminded that if he as a seller insists on proclaiming "As-Is" it will not only be counter-productive but more importantly, very expensive.
By Pat Kapowich, SiliconValeyBroker.com owns Kapowich Real Estate in Cupertino. E-mail questions to him at pat@SiliconValleyBroker.com