With the Real Estate market in overdrive there are many things you may be asked to add to your offer to secure a contract on a home. One of those things you may be asked to do is sign an AS-IS agreement.
Kansas this document is call "In It's Present Condition Addendum"
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This Document has 3 options ( See Excerpt below )
Option # 1
allows you to conduct a home inspection , it allows you to ask for repairs or concessions and allows for cancellation of the contract. The major caveat is that is states the sellers expressed interest in not offering repairs
and will most likely decline your request.
Option # 2
allows you to conduct an inspection, allows you to cancel the contract if not satisfied with the Inspection but you are waving your right to ask for repairs or concessions including termite treatments.
sometimes call this a Pass/Fail Inspection.
Option # 3 i
s a complete waiver of all inspection and cancellation rights. This option is not suggested
should only be used by someone who has specific experience who can recognize and identify potential issues with the home.
So what are the benefits of making an As-Is offer? Most sellers don't want to deal with repairs after accepting a contract, moving is very stressful even without trying to hire contractors to complete repairs within the short time period there is between
the inspection and your closing date. Offering to accept as-is will give a seller the peace of mind that they will not need to add repairs to their to-do list prior to closing. Offering As-is will make your offer more appealing that 1 that does not.
While accepting As-Is may benefit your ability to secure a property , there are also pitfalls.
More: Meet A Great Home Inspector
While the home you just had your offer accepted on may look to be in excellent condition, a home inspection may uncover many hidden defects you were not expecting.
you may have agreed in writing that you cannot request repairs, what are your options? You will have the option to cancel, this is a tough decision considering how difficult it is to get a property under contract. This is where you will have to decide
if it is worth it to stay in or to start shopping again.
While making the decision to cancel a contract due to major deficiencies is a hard one, imagine not having an inspection and only finding out the issues after you become the homes new owner? This is why we do not suggest waving the home inspection, while
waiving the inspection might put your offer over the top, you may rue the day you did it.
Are you in the market for a new home? Stay tuned for more articles about the home buying process from Mike Russell & Associates. We have over 20 years experience navigating buyers through to process of buying homes in Johnson County Kansas and the Kansas City Metro Area
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