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Relax, all homes will show problems. Even new construction homes will have problems noted on an inspection report. The reports purpose is to inform you of the condition of your home. Armed with the knowledge of the existence of condition concerns, you can now evaluate [...] No related posts. Related posts brought to you by Yet Another Related Posts Plugin.]]> By: Bruce LaBell  of  Royal Home Inspectors,  AZ Vice President of ASHI

Relax, all homes will show problems. Even new construction homes will have problems noted on an inspection report. The reports purpose is to inform you of the condition of your home. Armed with the knowledge of the existence of condition concerns, you can now evaluate the costs, and determine which combinations of options are best for you.

Opinions vary greatly as to which conditions noted are acceptable “As Is”, or could cost you a lot of money now or down the road. I will assist you in determining pros and cons of each situation, but urge that you get a second opinion on any area that you may have concerns.
• No house is perfect
• Minor problems are to be expected. All houses age. They need lots of maintenance over the years, and seldom do we expect that they are in the condition, or apply the same standards of new homes.
• My job is to report on the negative aspects of condition. This does not mean the home is a bad deal!
• Now you can take some time to absorb the conditions reported and evaluate how to remedy them.
• Talk over your concerns with your realtor, your trusted contractors, lawyer, anyone who will help determine costs or risks associated with the purchase.
• Get quotes for the repairs you deem necessary.

Your Options Are:

1. Accept certain conditions “As Is”.
Evaluate the condition of the home and accept the fact that no house is perfect and proceed with the sale with knowledge of the present conditions.
2. Ask seller to fix selected conditions
When armed with the cost estimates, you could ask that certain items are repaired before closing. You must also understand that the seller is not obligated to accept terms that you dictate. Repairs must be detailed as to standards of workmanship and materials. These can add to the complexity of the sales agreement and very often result in arguments and litigation about terms. Repairs and negotiations can drag out the sale indefinitely, costing all parties time and money.
3. Renegotiate the sales price.
A seller may adjust the purchase price or contract terms if major problems are found. If the problems are costly you will be able to make your decision about purchasing the home with the proper knowledge about the future cost of that home. Neither party is required to enter into negotiations of price. Chances are they priced the home with most conditions in mind.
4. Reject the sale.
Its your money. Don’t let sales pressure saddle you with years of buyer remorse. The terms of this sale are in your control.
For more information or if you have any questions you can contact me, Bruce LaBell at RoyalHomeInspectors.com or (602) 765-2140.

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When the term As-Is is used in a real estate listing, it is a notice to readers that the seller of the property has taken a position that the condition of the property is not negotiable. It does not mean that the seller [...] No related posts. Related posts brought to you by Yet Another Related Posts Plugin.]]> By: Bruce LaBell Of Royal Home Inspectors , AZ Vice President of ASHI

When the term As-Is is used in a real estate listing, it is a notice to readers that the seller of the property has taken a position that the condition of the property is not negotiable. It does not mean that the seller has no responsibility for the condition of the property, and it does not necessarily mean that the seller will refuse to listen to reliable information provided with regard to the condition of the property. Contrary to what seems to be a popular misconception, As-Is has nothing to do with a potential purchaser’s right to discovery with regard to the conditions of the property.

Sure, anyone can offer to sell anything without offering any representation about or warranty of its condition. Standard purchase contract forms often contain a lot of stuff about condition, but that can be lined-out, leaving no responsibility on the seller and abandoning the purchaser to decide what to do about the condition of the property. Nevertheless, a savvy purchaser will want to know about the condition of the property, and a savvy selling agent will want to ensure the purchaser is aware of those rights and chooses to take action on every one of them, or acknowledges in writing that they have been waived. It is foolish to assume that the notice As-Is stated on the listing is enough to discourage a purchaser from even attempting to discover the conditions of the property and that the As-Is statement in some way automatically protects agents from liability for property condition.

With the recent downturns in residential real estate largely caused by questionable practices in marketing and financing, we are being treated to what seems to be an almost endless stream of foreclosed properties and short-sales. These properties are almost always listed As-Is, since those who represent the properties are only rarely familiar with the properties. Agents bringing purchasers for these properties might be inclined to tell their clients (erroneously) that they have no real right to inspect anything or to do anything but sign a contract to purchase on an As-Is basis. Of course, agents who conduct themselves in this manner are “skating on thin ice.”

Meanwhile, sometimes inspectors contacted to do an inspection of an As-Is property are told in advance that the seller is not willing to fix anything. . . as though that information might influence the inspection. Apparently, some agents are under the impression that the purpose of a home inspection is to find conditions for the seller to fix. Professional inspectors are committed to discovering and relating useful information about a property’s conditions to their clients, with no regard about who (if anyone) might be responsible for repairs or corrections. Property condition rightfully has an effect on property value, so knowledge about condition (in the hands of a savvy purchaser) should influence the price a purchaser is willing to pay. Conversely, an uninformed buyer might agree to a sale price that does not properly reflect the actual value of the property. If an agent does not encourage his or her client to become as informed as possible, regardless of an As-Is provision in the listing, the difference between the purchase price and the real value might show up on his or her doorstep.

As the ranks of practicing REALTORS® and truly professional home inspectors dwindle, those who remain might look around and identify what characteristics the survivors share. Could it be that real integrity actually counts? Is loyalty to one’s client a worthwhile trait, or was cynicism about buyers and sellers more appropriate? Professionalism in practice is now more obviously not just an advertising claim . . . it actually counts! If you are reading this, you may be a survivor. This would be a good time to connect with some of the other survivors in allied fields. Look for appraisers who work hard to develop realistic and defensible estimates of property value. Look for home inspectors who are recognized by legitimate professional associations and who adhere to tough standards above those required by the State. Hang out with people you would trust if you were the purchaser . . . it is part of your job!

Bruce LaBell of  Royal Home Inspectors
www.RoyalHomeInspectors.com 602.765.2140
ASHI (American Society of Home Inspectors) Certified Inspector  245362
AZ BTR 41795
Vice President AZ-ASHI
Approved Instructor with ADRE
Certified Advanced Residential Mold Inspector
Certified Disaster Housing Inspector (FEMA)

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