“AS-IS” sales are becoming more and more popular as home inventory gets tighter and buyers are trying to make their offer the winning one.
But what does that actually mean for you?
#1. what is an "as-is" sale?
An “AS-IS” sale is a common way of saying that the buyer and seller include a contract clause where the buyer promises that after doing the home inspection, the buyer won’t be asking the seller for any repairs or money. This does NOT waive the buyer’s right to do an inspection (unless that was waived in another clause, but that’s a separate topic). It also does NOT waive the buyer’s right to back out of the deal if you don’t like the inspection results and if your contract has that option. It’s just a way of making your offer easier on the seller, because you’re promising no repair requests should you decide to move forward post-inspection.
#2. common misconceptions about "as-is" sales
A home that’s asking for "AS-IS" offers doesn’t always have to be in bad shape! It just means that the seller is not interested in working on any repairs that might come up, however minor. A lot of times the homes that are in worse shape end up selling "AS-IS," because it just wouldn’t make sense for the seller to fix up an entire fixer-upper that the buyers are looking to remodel anyways. But sometimes, homes that are in GREAT shape sell as-is because it’s inconvenient for the seller or they simply by choice don’t feel like taking on repairs. And that’s completely normal in today’s competitive market.
#3. the seller's liabilities
"AS-IS" does NOT mean the seller is free from liability as to the condition of the house. In Illinois, sellers (with some exceptions) are required to answer a list of legally binding questions regarding the condition of a property and give it to the buyer before the contract is binding. As long as a seller isn’t exempt (talk to an agent to find out more about this) a buyer may rely on those answers. If the seller lies in any of them there can be consequences.
**the above is information is general info and not legal advice. Your individual situation may vary. No agency or attorney relationship is formed. This info based on the standard multiboard 7.0 contract used in Illinois. If you use a different contract, modify that contract or are transacting in a different state, this information might not apply. Contact a real estate agent or attorney to review your specific situation.**
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