The vast majority of Louisville home sales involve at least two levels of negotiation: First, there is the establishment of the agreed upon sales price & terms; Secondly, there is the post-home inspection negotiations which often include the Buyer's right to request the Seller to make repairs, corrections, or replacements to the property.
In certain circumstances, this second level of negotiation doesn't exist, or is severely altered. Most foreclosure sales or REO sales are sold "as is". In Louisville, this phrase could mean several things, so it's important that if you are purchasing a home with an "as is" clause that you know which type of "as is" you are dealing with.
I've heard real estate professionals and consumers use this term, and I've heard them use it in very different ways to describe the same home sale. This is problematic. As usual, it's all in the expectations of the parties involved. So it's in the spirit of expectations that I offer the following advice:
- If you are a buyer purchasing a home or condo in "as is" condition, be clear about what you mean, and force the Seller and his/her real estate agent to be clear about what they mean as well.
- Does "as is" mean that the home buyer is purchasing the property regardless of the results of the inspection?
- Does "as is" mean that the buyer is purchasing the home subject to inspections for information only, and thus, if the Buyer is not satisfied with the results of the inspections, then the Buyer may terminate the contract in exchange for his/her earnest money deposit?
- Does "as is" mean that the Buyer agrees to purchase the property in its current condition while retaining his/her right to terminate the contract based on inspections AND retaining his/her earnest money deposit? I like to call this scenario one in which the home inspections are "pass or fail".
- Realize that if the Seller is a bank or financial institution that has repossessed the home or condo that they probably have a very defined idea of what "as is" means, and know that not all financial institutions have the same definition.
Looking to sell a Louisville home, buy a Louisville home, or invest in Louisville real estate? Contact The Thomas Group of Keller Williams Realty Louisville East today!