Can I negotiate post-inspection the house sold as-is?

Buying & Selling Real Estate
6yFollow

Can I negotiate post-inspection the house sold as-is?

Alla Minchenkov
Fairfax, VA · Member since 2015 · 27 posts · 10 votes

We are considering buying a house, which was listed as-is. The house has a lot of issues and requires a lot of work. Our offer has inspection contingency with void only, given the house was sold as-is. Can we go back with an addendum to include the inspection contingency with the right to negotiate or void? Or shall we give head ups to the seller that we will need to negotiate based on inspection findings to make the deal happen? Please advise. Thank you.

4Reply
281 views

Most Popular Reply

Anthony Dooley
Investor · Columbus, GA · Member since 2014 · 2k+ posts · 1k+ votes
6y

@Alla Minchenkov Go ahead and void the contract based on the inspection. This doesn't prevent you from writing another offer, now that you are more informed of the condition of the house.

13Reply
See this reply in the discussion

70 Replies

Jump to latestLatest
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    6y

    You only have the option to void. If I was on the selling end and you sent over an attempt to negotiate, Id simply ignore it til after your contingency period ended since your contract doesnt allow for negotiation. 

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
    WebsiteView Page
    11Reply
  • Alla Minchenkov
    OP
    Fairfax, VA · Member since 2015 · 27 posts · 10 votes
    6y

    @Russell Brazil thank you. Another question - could the offer be submitted and accepted if the house is listed as-is and the buyer offer includes inspection with negotiation or void? Does anyone do it and succeed?

    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    6y

    @Alla Minchenkov

    Possible but unlikely. Its being sold as is for a reason.

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
    WebsiteView Page
    4Reply
  • Anthony Dooley
    Investor · Columbus, GA · Member since 2014 · 2k+ posts · 1k+ votes
    6y

    @Alla Minchenkov Go ahead and void the contract based on the inspection. This doesn't prevent you from writing another offer, now that you are more informed of the condition of the house.

    13Reply
  • Alla Minchenkov
    OP
    Fairfax, VA · Member since 2015 · 27 posts · 10 votes
    6y

    @Russell Brazil by the way “sold as is” was only stated in the listing. I do not have anything on this in the purchase contract. To acknowledge that it was noted as such in the listing, we put the offer with the inspection contingency, void only. On the day of inspection, the basement was flooded. What do we do? Just walk away? I am sure the sellers want to get rid of such house, it has been on the market 92 days.

    1Reply
  • Alla Minchenkov
    OP
    Fairfax, VA · Member since 2015 · 27 posts · 10 votes
    6y

    @Anthony Dooley I like this! Thank you. The house has been on the market 92 days. On the day of inspection the basement was flooded with water sipping through the wall from outside.

    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    6y
    Originally posted by @Alla Minchenkov:

    @Russell Brazil by the way “sold as is” was only stated in the listing. I do not have anything on this in the purchase contract. To acknowledge that it was noted as such in the listing, we put the offer with the inspection contingency, void only. On the day of inspection, the basement was flooded. What do we do? Just walk away? I am sure the sellers want to get rid of such house, it has been on the market 92 days.

     You should be consulting with your agent on their perception of the situation and how to proceed. Hopefully they have a good read on the situation through their conversations with the listing agent. 

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
    WebsiteView Page
    2Reply
  • Anthony Dooley
    Investor · Columbus, GA · Member since 2014 · 2k+ posts · 1k+ votes
    6y

    If you stand on the street in front of that house, you will notice other houses in the area. I am willing to bet that there is a house on every corner of the neighborhood. Move on.

    3Reply
  • Alla Minchenkov
    OP
    Fairfax, VA · Member since 2015 · 27 posts · 10 votes
    6y

    @Russell Brazil we are doing it without the agent and I am the one reading the situation. I do not mind that at all. I just need to know what as-is means - is based on the listing only or solidly on the contract?

    1Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    6y
    Originally posted by @Alla Minchenkov:

    @Russell Brazil we are doing it without the agent and I am the one reading the situation. I do not mind that at all. I just need to know what as-is means - is based on the listing only or solidly on the contract?

     I highly advise you to hire an agent or real estate attorney to review your contract so you understand your options. 

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
    WebsiteView Page
    6Reply
  • Nicholas GlatterPro Member
    Investor · Tampa FL, USA · Member since 2019 · 72 posts · 20 votes
    6y

    @Alla Minchenkov

    I just recently was in escrow for a home that was as is and the seller had some pressure to sell their home ASAP.

    We were able to negotiate a credit based on what was found post inspection.

    It depends on the seller situation.

    Make sure you have contingency going into the initial accepted offer to back out after inspection. If they don’t agree to fix issues, lower cost of agreed price, or give credit, back out and find a new home if it doesn’t work for your needs.

    4Reply
  • Alla Minchenkov
    OP
    Fairfax, VA · Member since 2015 · 27 posts · 10 votes
    6y

    @Anthony Dooley well, it is a peculiar hot market (but it is much cooler in December-January) especially when looking at the overpriced property that scares buyers with a lot of work to do; and do not present interest for flippers or those who can get very good deals as investors/contractors.

    Plus, another issue which I am not sure how to tackle - not only does the garage/ shed not meet setback, it is half way on the neighboring county lot! :-0. What shall we do?

    0Reply
  • Alla Minchenkov
    OP
    Fairfax, VA · Member since 2015 · 27 posts · 10 votes
    6y

    @Nicholas Glatter Thank you! When you say as-is, was it stipulated in the purchase agreement? We did not put “as-is” in our offer, we only acknowledged that in the listing it was stated as-is by including inspection contingency with void only option. The seller accepted this in their counter offer, and then we accepted the counter offer. Thank you.

    0Reply
  • Charlotte Dunford
    Investor · Johns Creek, GA · Member since 2017 · 463 posts · 488 votes
    6y

    @Alla Minchenkov When negotiating real estate, the due diligence date is the most important date. There is a major power shift that happens on and after the due diligence expiration date. You can always negotiate as long as you haven't closed. The best strategy I have been implementing and has been working for me - negotiate hard 3-4 days before the due diligence expiration date. This gives the seller some time to respond and always creates a sense of urgency. I could write a book on negotiation. It is truly an art and requires very high emotional intelligence to be truly good at it. 

    9Reply
  • Charlotte Dunford
    Investor · Johns Creek, GA · Member since 2017 · 463 posts · 488 votes
    6y

    I would recommend reading a book (I love this book) - "Never Split the Difference: Negotiating As If Your Life Depended On It"

    9Reply
  • Charlotte Dunford
    Investor · Johns Creek, GA · Member since 2017 · 463 posts · 488 votes
    6y

    I wouldn't tell the seller that you will negotiate though. That will make them not want to get under contract with you. 

    1Reply
  • Michael Noto
    Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    6y

    @Alla Minchenkov Do not take this the wrong way but your situation is a perfect example of why you need a buyers agent or at the very least an attorney in the trenches with you during a real estate transaction. If the contract does not include any language that says the home is selling "as-is" then it is not an "as-is" sale.

    With that said, if the listing agent has passed along that the seller is not willing to do any repairs then the only way you are going to know if they will or not is to put a list in front of them and see what they say. Like @Russell Brazil mentioned agent conversations can be invaluable for you as a buyer when it comes to successfully navigating this stage. Getting repairs done by the seller is only one option, you can also negotiate a closing cost credit from the seller as opposed to them coordinating the repairs, you can ask for a price reduction, etc. Get someone on your side who can present all of the options available to you in this case. 

    6Reply
  • Dennis M.
    Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
    6y

    either you want the house or you don’t geez . If I was the seller And it’s in a hot market, I’d tell you to go pound sand . You gotta be decisive in real estate and if you don’t know something then you have the wisdom to bring in folks that do know . A good tip is bring a contractor with you on houses that require work during a walk through . Have them tally up estimates and look for concerns as you tour the house . Pay the guy a steak dinner or 50 bucks for his time . It’s not necessary to have 857 contingencies in the deal if you know what your doing . Sellers gate slithery buyers always looking for a way out .

    3Reply
  • Alla Minchenkov
    OP
    Fairfax, VA · Member since 2015 · 27 posts · 10 votes
    6y

    @Jingwen Dunford thank you so much for your advice!

    1Reply
  • Alla Minchenkov
    OP
    Fairfax, VA · Member since 2015 · 27 posts · 10 votes
    6y

    @Michael Noto thank you, Michael! It is super helpful! Because the house requires a lot of work, and we have some experience with buying without agent by now, we decided to go without agent and already got 2.5 percent saving (22k) just for that, and the seller is happy and we have good will built with the seller. The selling agent is another story, not very cooperative and not very pleasant, but we can deal with it. This guy is one of the reasons why this house got stuck on the market, I believe.

    We have also been bringing contractors and will have a list of repairs. The inspection was long and we have a long report with all the issues documented.

    Also, we work with the lender to get a purchase + construction loan. The construction loan part came out small, not enough to fix the issues and underpin basement, as we plan.

    1Reply
  • Alla Minchenkov
    OP
    Fairfax, VA · Member since 2015 · 27 posts · 10 votes
    6y

    @Jingwen Dunford Jingwen, we already under contract with inspection window. We put 10 days, and still have 8 days left. The inspection was done on day one - long report with tons of issues. The basement got flooded on the day of inspection, and we have pictures of that, and passed to the seller. The water was literally water-falling into the basement from outside. The sump pump works on an off. The roof leaks in one place. So on and so fort. The house has been on the market 92 days. The seller agent, we believe, was bluffing to push us to sign the counter offer when saying that he continues to show the house. At least during three of those “showings” no one was coming. He was also saying that he was expecting offers and no offers were coming...

    0Reply
  • Alla Minchenkov
    OP
    Fairfax, VA · Member since 2015 · 27 posts · 10 votes
    6y

    @Jingwen Dunford Jingwen, when you say due diligence date - do you mean inspection contingency expiration date?

    0Reply
  • Anthony Dooley
    Investor · Columbus, GA · Member since 2014 · 2k+ posts · 1k+ votes
    6y
    Originally posted by @Alla Minchenkov:

    @Anthony Dooley well, it is a peculiar hot market (but it is much cooler in December-January) especially when looking at the overpriced property that scares buyers with a lot of work to do; and do not present interest for flippers or those who can get very good deals as investors/contractors.

    Plus, another issue which I am not sure how to tackle - not only does the garage/ shed not meet setback, it is half way on the neighboring county lot! :-0. What shall we do?

    What will you do to prevent the basement from flooding? This is a big, expensive problem. Water damage, termites, mold? The property line issue is simply a matter of disclosure to the end buyer. Ask yourself, "How much profit is here?" and "Is there another property, or two, that I could make the same money with less work/problems."

    0Reply
  • John Teachout
    Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
    6y

    I'm curious how you know one of the structures has encroached over the property line. Was this disclosed or did you have a survey done?

    The wet basement issue is something that can be readily resolved but the property line issue would have me walking away.

    0Reply
  • John Barrows
    Real Estate Broker · Auburn, WA · Member since 2015 · 151 posts · 106 votes
    6y

    Check with your state laws but, as in most every case, an "AS IS" statement does not mean the entire house or land it sits upon is "AS IS". The seller may want you to believe this but, most generally, "AS IS" must be prefaced by (WHAT IS "AS IS") that would be the question within the laws. Many a case has been lost by the mere statement that the HOUSE was sold "AS IS" because it's not specific enough in Washington State. Land is not an "AS IS" purchase when hazardous waste or a deadly substance or land fill was created. Check your local laws.

    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free