breaking good faith convenant purchase contract
How Does an AS IS Sale Work in Sacramento?
Technically, when you get right down to it, the question about how does an AS IS sale work in Sacramento makes little sense because every sale is AS IS. But buyers don’t really understand that concept and many of their agents fail to grasp the verbiage, too. For example, many agents do not spend time perusing our purchase contracts. However, they should because our California Residential Purchase Agreement, paragraph 11, states the following:
11. CONDITION OF PROPERTY: Unless otherwise agreed in writing: (i) the Property is sold (a) “AS-IS” in its PRESENT physical condition as of the date of Acceptance and (b) subject to Buyer’s Investigation rights; (ii) the Property, including pool, spa, landscaping and grounds, is to be maintained in substantially the same condition as on the date of Acceptance; and (iii) all debris and personal property not included in the sale shall be removed by Close Of Escrow.
AS IS does not mean that after a home inspection the seller is required to make repairs nor otherwise satisfy the buyers’ concerns. Now, if you consider a first-time home buyer, well, not unusual to discover this type of buyer harbors a bit of confusion, especially if you listen to a buyer’s agent assuring the buyer she can make the seller do repairs. Not true. Every home presents defects. Every home requires upkeep and maintenance. No law requires sellers to make a home suitable for a buyer’s tastes or preferences.
Maintaining a home falls to the buyer’s shoulders. Welcome to home ownership. And whatever improvements the buyer wants to make. However, I can beat to death this topic as definitely reflected in other blogs you can probably note below this blog. Instead why not talk about how does an AS IS sale work in Sacramento, especially when buying, say, a fixer.
Often I include in counter offers the wording: Sold in its AS IS condition, and there will be no renegotiations, no credits and no repairs.
You probably think that sounds very straight forward and clear. Yah? But people pretend they don’t understand. Non capisco. No entiendo. Or, they thought they understood but completely forgot the neglected home exuded much deferred maintenance. It came as a shock to them, a total shock, mind you, that floors that give a little bit underfoot might bend due to a broken joist. Or that wet, rotting wood might produce termites. Or, that the sagging roof one could easily spot from the ground might need replacing.
So to these people, answering the question about how does an AS IS sale work in Sacramento, well, they make the mistake of assuming it works through attempts to renegotiate. Or extortion. By claiming brain injury or foggy memories. Or, by blowing defects out of proportion. What a fun game. And many try to play. When they really should consider admitting, hey, sorry, I goofed when I made an offer. Did not mean to commit. I’m not ready to buy AS IS real estate in Sacramento.
But that will happen when pigs fly.
Probably half of my AS IS sales blow up because those buyers did not enter into contracts in good faith. The other half close with the first buyer. But first buyer, second buyer, makes no difference to me which ultimately purchases home. The only thing for me to add: my sellers understand AS IS means AS IS. Nothing else. At least for my transactions. If buyers expect a discount or some other consideration, not gonna happen.