As Is Can’t negotiate further?

Buying & Selling Real Estate
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As Is Can’t negotiate further?

Cory LucasPro Member
Rental Property Investor · Brighton, IL · Member since 2019 · 431 posts · 139 votes

Got an offer accepted on a property, home inspection showed some pretty big concerns, but my realtor says I can’t negotiate further since the seller is selling AS IS?

Is this right? If so any other thoughts/options versus just backing out?

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Allen Williams
Realtor · Jacksonville, FL · Member since 2019 · 95 posts · 87 votes
5y

@Account Closed As a Realtor I would say always always you are the customer and even if the other party denies your request that should be what happens, not your Realtor stopping you from making a move. I would encourage you to just state you want to send an amendment to the price (or repair addendum showing what want fixed, usually price reduction is easiest with amendment for AS-IS properties), attach a copy of a quote from a GC/sub so the other party knows it is legit, and then move forward if the numbers still work, or back out if the deal is dead. Hopefully the other party will help with covering some of the unforseen issues, not everyone is unreasonable. But I would do all that first instead of walking away because you already paid for an inspection. I hope this helps!

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  • Cory LucasPro Member
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    Rental Property Investor · Brighton, IL · Member since 2019 · 431 posts · 139 votes
    5y

    @Jack Orthman stellar stuff! I appreciate it

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  • Cory LucasPro Member
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    Rental Property Investor · Brighton, IL · Member since 2019 · 431 posts · 139 votes
    5y

    @Andrew Galambos that’s what I said to my realtor and he said not when they are selling AS IS. Didn’t seem right to me

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  • Cory LucasPro Member
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    Rental Property Investor · Brighton, IL · Member since 2019 · 431 posts · 139 votes
    5y

    @Francis Louis Vogel Jr thank you. The last piece was eye opening, I’d prefer to not do bankruptcy again. Wasn’t too fun the first time

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  • Cory LucasPro Member
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    Rental Property Investor · Brighton, IL · Member since 2019 · 431 posts · 139 votes
    5y

    @Rose Higgens good points and this might be an $800 lesson learned if I end up walking away from it

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  • Cory LucasPro Member
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    Rental Property Investor · Brighton, IL · Member since 2019 · 431 posts · 139 votes
    5y

    @Matthew Olszak nope the inspection clauses are in there just looked, nothing about waving or needing to do beforehand. Good points and tips, really appreciate the feedback

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  • Brie SchmidtBusiness Member
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    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    5y

    @Account Closed -it depends.  Were the issues things that you can see with the naked eye that your agent should have pointed out to you?  If so, you can try but likely won't get far.  If they were things that you couldn't have known about then you can ask and they might.

    For example I sold a house this summer in as is condition and they came back to me that some roof shingles were missing and the chimney needed some work.  I had it fixed 

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  • Cory LucasPro Member
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    Rental Property Investor · Brighton, IL · Member since 2019 · 431 posts · 139 votes
    5y

    @Brie Schmidt no definitely things that could not be seen with the naked eye. Crawlspace completely covered in water, couldn’t see past the opening without crawling inside as there was plastic hanging down, structural supports not properly installed, ductwork not attached to the HVAC system literally laying in the water, the roof is literally not even attached at one of the joists where it should be attached to the house, and wiring chewed through in the attic of the garage

    I feel those are items worth negotiating on right?

    And thank you for taking the time and weighing in

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  • Thalia Mena
    Real Estate Broker · Chicago, IL · Member since 2019 · 44 posts · 12 votes
    5y

    @Cory Lucas

    Hello Cory,

    Although you stated you would take it AS-IS your attorney can always help negotiate when inspection issues come about.

    I’ve had a client take as-is but we were able to negotiate sellers fixing a major plumbing issue the home appeared to have had before my clients proceeded forward. I wouldn’t give in just yet.

    I would suggest advising your attorney to help with this matter.

    Hope that helps.

    Thalia

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  • Cory LucasPro Member
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    Rental Property Investor · Brighton, IL · Member since 2019 · 431 posts · 139 votes
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    @Thalia Mena thank you! Much appreciated on the time and feedback

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  • Ruth Lyons
    Investor · Colorado Springs · Member since 2016 · 234 posts · 150 votes
    5y

    Great comments and feedback here. Being in a very strong seller's market in Maryland right now, it's a tough market to negotiate down housing prices in most cases. But not all. A good agent knows how to interact and what information to research and share with the seller/seller agent to get you the best deal possible. As others said "as is" is negotiable. Everything is negotiable in real estate. One caveat and word to the wise investor: when you find a great agent, don't negotiate their fee to the point that you take away their incentive to work hard, and negotiate even harder, on your behalf. 

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  • Cory LucasPro Member
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    Rental Property Investor · Brighton, IL · Member since 2019 · 431 posts · 139 votes
    5y

    @Ruth Lyons good points, thank you for the feedback

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  • Andrew FreedBusiness Member
    Investor · Worcester, MA · Member since 2020 · 1k+ posts · 1k+ votes
    5y

    @Account Closed - Everything in life is negotiable including "as is" sales. On two different "as is" offers, I had the seller reduce the price as a result of items found during the inspection. It's your money, they have the option to work with you, drop the deal or you move forward at the original price. Either way, its worth asking. It could save you thousands of dollars but cost you nothing if they say no and you move forward. 

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  • Marci Stein
    Rental Property Investor · New York, NY · Member since 2011 · 956 posts · 510 votes
    5y

    My understanding “as is “

    means you are buying it as is - 

    the seller will not do anything . 

    that does not mean you can’t amend your offer. 

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  • Cory LucasPro Member
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    Rental Property Investor · Brighton, IL · Member since 2019 · 431 posts · 139 votes
    5y

    @Andrew Freed agreed! Thank you

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  • Cory LucasPro Member
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    Rental Property Investor · Brighton, IL · Member since 2019 · 431 posts · 139 votes
    5y

    @Marci Stein thank you, appreciate the feedback

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  • Matthew Paul
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
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    Originally posted by @Account Closed:

    @Brie Schmidt no definitely things that could not be seen with the naked eye. Crawlspace completely covered in water, couldn’t see past the opening without crawling inside as there was plastic hanging down, structural supports not properly installed, ductwork not attached to the HVAC system literally laying in the water, the roof is literally not even attached at one of the joists where it should be attached to the house, and wiring chewed through in the attic of the garage

    I feel those are items worth negotiating on right?

    And thank you for taking the time and weighing in

     You made an offer without looking visually in the crawlspace ?  

    I look over the whole house with MY eyes . Once I saw water in the crawlspace , alarm bells would have went off . 

    Unless you have dealt with situations like this , I would try and get out , unless the numbers work extreeeeeemly well . Would you want to work in a wet crawlspace ?  Well if not , dont think a contractor will . And the one that will will charge accordingly .

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  • Cory LucasPro Member
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    Rental Property Investor · Brighton, IL · Member since 2019 · 431 posts · 139 votes
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    @Matthew Paul no, like I said I couldn’t see past plastic hanging down inside the crawlspace. Not a whole lot scares me, but I definitely agree with your advice. I appreciate the feedback

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  • Tyler Williams
    Dentist · Taylorsville, UT · Member since 2013 · 102 posts · 68 votes
    5y

    @Cory Lucas

    What is the % of your purchase price needed i repairs?

    As in the dollar amount of repairs divided by purchase price? You should plan for 5 to 10% of your monthly rent to cover ongoing capital expenditures/repairs anyway.

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  • Cory LucasPro Member
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    Rental Property Investor · Brighton, IL · Member since 2019 · 431 posts · 139 votes
    5y

    @Tyler Williams offer that was accepted is $40K, repairs on the high side at the moment I figure $62K

    I usually figure 5% if I’ve replaced most large capital expenditures, 10% if there are items that could get by for awhile but will need tended to down the road

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  • Cory LucasPro Member
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    Rental Property Investor · Brighton, IL · Member since 2019 · 431 posts · 139 votes
    5y

    So I go back to my realtor tell him I want to ask for a reduced price, he now says to let him know what the amount is, then gives me the reasoning they won't make repairs (being an estate sale and it's listed on the MLS that it's AS IS) I reply that I understand no repairs, but the contract states the remedy clause for things that can't reasonably be seen on a walkthrough and those remedies are repairs and/or a monetary adjustment. He says I'm not misunderstanding the contract and in this case it's better to ask for a price reduction, but HERE'S the kicker he then tells me to CANCEL any appointments I have with contractors (he only knows of one I have) until we know if this is going to go through. So I then ask if he wants me to send an ask for a reduction in price without any estimates to accompany the need for adjustments, he says we'll just send them the home inspection. Thoughts on all of this?

    My concern is two fold, one why stop the appointments and two wouldn't it make more sense to have prices to go along with the inspection pieces to justify the price reduction?

    Not to mention it's my choice on whether to follow through on the deal even if they don't come further down on price, so why wouldn't I continue to try and line up my contractors as I deem necessary.

    Thanks in advance for the time and feedback

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  • Russell BrazilBusiness Member
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    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
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    Originally posted by @Account Closed:

    So I go back to my realtor tell him I want to ask for a reduced price, he now says to let him know what the amount is, then gives me the reasoning they won't make repairs (being an estate sale and it's listed on the MLS that it's AS IS) I reply that I understand no repairs, but the contract states the remedy clause for things that can't reasonably be seen on a walkthrough and those remedies are repairs and/or a monetary adjustment. He says I'm not misunderstanding the contract and in this case it's better to ask for a price reduction, but HERE'S the kicker he then tells me to CANCEL any appointments I have with contractors (he only knows of one I have) until we know if this is going to go through. So I then ask if he wants me to send an ask for a reduction in price without any estimates to accompany the need for adjustments, he says we'll just send them the home inspection. Thoughts on all of this?

    My concern is two fold, one why stop the appointments and two wouldn't it make more sense to have prices to go along with the inspection pieces to justify the price reduction?

    Not to mention it's my choice on whether to follow through on the deal even if they don't come further down on price, so why wouldn't I continue to try and line up my contractors as I deem necessary.

    Thanks in advance for the time and feedback

     Do you have permission from the sellers to do subsequent inspections? You cant just come and go from the property as you please, you need permission to enter.

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  • Cory LucasPro Member
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    Rental Property Investor · Brighton, IL · Member since 2019 · 431 posts · 139 votes
    5y

    @Russell Brazil right, for things on the inside, mainly I’ve had roofing contractors coming by, so we haven’t needed to enter the property

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  • Russell BrazilBusiness Member
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    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    5y
    Originally posted by @Account Closed:

    @Russell Brazil right, for things on the inside, mainly I’ve had roofing contractors coming by, so we haven’t needed to enter the property

     Did the roofing contractor go on the roof?

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  • Cory LucasPro Member
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    Rental Property Investor · Brighton, IL · Member since 2019 · 431 posts · 139 votes
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    @Russell Brazil one of them did yes, I’ve been forthright with all of them that I have an offer accepted, under contract, and looking to get bids.

    Had one that said to contact them back when the deal goes through, another I met at the property he did not go on the roof, just walked it with me, another did the estimate via satellite images and the other didn’t need me to meet them, said they’d go by, but I happened to be there with the home inspector when they came by and they did get on the roof.

    Something I should be doing differently?

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  • Russell BrazilBusiness Member
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    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    5y
    Originally posted by @Account Closed:

    @Russell Brazil one of them did yes, I’ve been forthright with all of them that I have an offer accepted, under contract, and looking to get bids.

    Had one that said to contact them back when the deal goes through, another I met at the property he did not go on the roof, just walked it with me, another did the estimate via satellite images and the other didn’t need me to meet them, said they’d go by, but I happened to be there with the home inspector when they came by and they did get on the roof.

    Something I should be doing differently?

     Depends if you had permission for someone to go out there and walk that roof after the inspection. If you had permission from the seller, you are ok. If you didnt, you trespassed, and could have created a huge amount of liability for a stranger if say the guy fell and broke his leg while you all were trespassing. 

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