Market Wise Q&A: Why Would Buyers ask for Repairs on an As-Is Sale?
Pat Kapowich for the San Jose Mercury News Q: We sold our home in a multiple-offer situation. The offer we chose had an "As-Is" contract. Now, after the buyers had inspections conducted, they are asking for a list of repairs to be completed. We're both shocked and dismayed. Is this a tactic buyers use to get into contract knowing full well they will renegotiate when the other buyers have moved on?
A: Yes, but not always. In any case, buyers are typically rushed through a purchased contract and are often unpleasantly surprised at the terms and conditions of their offers. So asking the buyer's agent, "What part of "As-Is" did your buyers not understand?" will be met with a blank stare. In all fairness, the contracts used today have a mechanism where buyers can ask for repairs during the inspection period of a sale.
Many sellers who own homes that appear in good condition, particularly ones without pre-sale inspections, are caught off guard by negative items noted in buyer inspections. Complicating matters, seller's reps often do not provide their clients with realistic expectations concerning "As-Is" or "Present Condition" transactions prior to entering the market. If they had, sellers would be more likely to fully inspect and disclosure their properties. That's one more way to reduce the chances of renegotiation when the seller is supposed to be packing
By Pat Kapowich, SiliconValeyBroker.com owns Kapowich Real Estate in Cupertino. E-mail questions to him at pat@SiliconValleyBroker.com