We have sold "as is". Every single thing the buyer wanted was a "no" and I was willing to walk away from the deal. If you are willing to walk away from the deal, that, as well as "as is", can certainly be communicated. You don't have to agree to any fixes.

Do you have a Real Estate attorney? If so, ask him/her to write up (or at least review) your contract before you counter to the buyer.

Congratulations! Have you discussed this with your agent? They should be happy to run all the possible outcomes through with you, give you your options, their professional opinion, and help you feel good about your final decision.

14k seems high but some programs require seller participation in order for the buyer to qualify. If you have a lender you trust I would make a quick call- tell them the program the buyers are using and see if the numbers seem real. We have a local program that requires sellers to pay 3% and the 3% cannot come from anywhere else. If the seller won't pay the buyer can't buy using that program some buyers maybe able to switch- some have to walk away.

Some mortgage brokers try to help buyers by getting sellers to pay points to buy down the rate. In this case 3 points plus closing costs and/or prepaids adds up.

Ask your agent to get more info and/or find out if they qualify for other programs if you can- they do not have to disclose the nitty gritty details with you.

I have had some success saying to buyers- listen I'm selling for less than I want and paying more closing costs than I want. I want to work with you but this is my number. If you really need 14k bump up the price to accommodate if you can do another loan I'll pay this price with 9k- sometimes putting it back in their court helps them focus on what they really need. It may also force the mortgage broker to rethink some issues.

Regarding your inspections...do you have anything that you are worried about? or is it simply the fear of the unknown? Again ask your agent their opinion......

I feel for you..its so tough making these decisions... what is your gut instinct telling you?

You sure can do As-Is since you are going to get a lower price than anticipated. Usually the buyer still has a right to inspect.

What can occur here is the buyer can walk away if there are issues in the inspection that the buyer does not want to deal with (and not want to get the place due to the issues.). What has occurred to sellers in'as-is" contracts, is the buyer then says they will walk away after issues are found during the inspection. Then the seller doesn't want that to happen, and seller throws in concessions. So basically, it really isn't 'as is' at that point.

Since your buyers are first-timers, they might freak out on minor inspection issues and you might be in the situation of trying to throw in incentives at last minute to prevent them from walking away, even though it is an "as-is" sale.

So maybe leave yourself about $2k wiggle room if this occurs.

We've always put a certain $ amount in the contract saying that as sellers we would repair or fix anything up to X amount of money (usually between $1,000 and $2,000) This let the buyer know we weren't going to be nickle and dimed to death but also gave him the option to walk if repairs were in excess of the dollar amount written into the contract. That always worked for us, but we never even approached a few hundred dollars in repairs with any of our buyers.

Unless they are brand new all homes are basically sold "as is". The inspection is for the buyers to discover anything that they cannot see on their own with a visual inspection, so that they know what they are getting into. A seller never has to agree to make any repairs if they don't want to. However the buyer can walk at that point. Have you thought of countering at $326k and giving them the $14k in closing that they need? A first offer should be considered a starting point. I think that most buyers would expect a counter offer when they offer anything less than full list price.

Busyasabee, i'm trying to sell my condo also. I first went with the market range value~$399K-$445K~mistake #1. Of course all I got were low offers. The first was an offer of $397K,with $19K going toward closing costs~why such a huge amount is beyond me. I was told he probably wanted to do a buy-down on the loan. After paying the commission of $20K 'take home' would have been $358K and that doesn't include any small costs a seller incurs. The second offer was equally as bad.

I've since listed at $424,500, a good $20K less than I had any intention of going, but with the market as it is, I STILL want to sell. I had a buyer who could not spend over $400K and bit th bullet and made and offer of $405K, but would not pay closing or any other costs. No matter how it's looked at, it's a good deal! The buyer came back on Thurs. eve, but haven't heard anything back from my agent. They have also looked at all the other 5 or 6 condos in my complex that are on the market, and mine has the most upgrades, and is move-in ready. If I were a buyer, and could somehow swing it, I would have to have rocks in my head not to bite on that. But maybe i'm prejudice.

You need to decide what's the very bottom price you would go and make them the offer, FIRM. I'm not into playing the 'negotiating game'.

Does your realtor know their realtor at all? A realtor should be educating first time buyers to what's going on if you say "as is". However if your realtor doesn't get the sense that the buyer's realtor is very experienced.....Sweet tea's scenario about them freaking out might be an issue.
Here's were realtors make the grade or fail by helping to figure out a way for everyone to be happy.

I feel I'm up against the wall here. I would love to be able to sell this house so I can move up to my single family home, but at 321k minus 14k towards closing, I'm basically selling the house at 307K....that's my bottom. if I could of reduced the closing cost down from 14K to 9K I would have the additional 5K as back-up in case there are credits needed after inspection. But the potential buyer is not going for this scenario. they are firm on a 14K closing cost and 321K sale price.
I've gone over this with my realtor, and he says they are willing to walk. ( A couple of days ago, I've already prepared myself mentally that this house was NOT going to sell, and I was going to let the contract run out on Wednesday and keep the house until market turns around.......but I guess everything is timing and this offer came in last evening.)

I've checked the comps in my area and for what they are getting for my house they are pretty lucky since I did put in 30K in upgrades this year........my thing is 307K is really my bottom, I can't think about giving any more credits...

How do I ensure that I have a way out of this AS IS contract? Is there any additional wordings I need to make sure are written in? I want to make sure I have an out in case the potential buyer asks for credits. I don't want to have any liabilities or get entangled in legal wranglings.

any more thoughts????

I would be careful with an AS-IS clause. To me, AS-IS sounds as if the property has a hidden defect and it would make me suspicious.
I actually bought an AS-IS property (it had issues) last year and used the AS-IS clause as an effective negotiation point against the seller (house listed at $235k. Got it for $205k).

If I were you, I would counter offer with a price you feel comfortable with and then when it comes to inspection, only repair what you feel must be repaired. Be prepared to let the buyer walk, if (s)he is difficult with the inspection.

Busy, go back and talk to your realtor again, since laws and real estate contracts vary by state. Usually what happens is you would agree to their offer -- at that point, you have both agreed that they will buy the house at 321K + 14K closing costs. If they come back later (after the inspection) and want anything from you that wasn't in the original contract, they are basically counteroffering again. You can simply reject their counteroffer if you don't want to pay for anything else, and then the ball is in their court -- they can accept that you aren't going to do any repairs, or they can walk. In any case, you are not obligated to give any "credits" or pay for any repairs, regardless of whether you say the house is "as is" or not.

I'm speaking from a postition regarding laws in my state so take it with a grain of salt and run it by your agent- it may not be true for your state or appropriate for your circumstances...plus it is a little involved for typing...but I do hope it helps you.

Negotiating is nothing personal. You want to get the best you can and so do the buyers. It makes sense to make a counter offer keeping something in your pocket for a counter offer and/or possible repairs. It's best not to let the ball drop in your court if it can be avoided.

As-is gets thrown around but does't have any legal teeth. In some states there is no such thing as selling "as-is" even though agents market homes that way. In some states that language cannot exist in a purchase and sale. When you sell a home you must make proper disclosure regarding defects. If you sell a home without making proper disclosure using "as-is" as your position and a defect is found that a buyer can prove a seller would/could/should have known about they can sue for damages even after the closing. Moreover many contracts have language regarding major components to be functioning at the time of closing. If your furnace dies before the closing there is nothing "as-is" about it- the seller is responsible for bringing that component back into working order prior to closing.

Folks will argue because some agents and sellers write UNKNOWN on everything but in our state an agent MUST seek out additional information on items listed as UNKNOWN and is responsible for providing that info. For example if the seller puts UNKNOWN on the size of septic system for a home marketed as four bedroom home and public records show that it has a three bedroom septic and the lisiting agent and/or buyer's agent did not provide that info to a buyer prior to writing the purchase and sale GUESS WHAT? those agents may be buying a four bedroom septic system. As is or unknown doesn't cover items that can be and in fact should be known.

Having said that you have an agent and so does the buyer so you have two layers of protection. I encourage you to reread the inspection clause of your contract and focus on what you can control like making sure your disclosure is accurate.

You can come to terms with the buyer and let them know there is no more money and can not make repairs. They may still come back and ask but you do not have to make repairs...that is your out you don't have to try to creat one..you already have it just like the buyers do.

OR you can have a written provision detailing an amount you are willing to spend should defects be found (some states already have a blank for that and language in their purchase and sales agreements.)

It is difficult to craft a clause stating that buyers can do the inspection for their own benefit but not ask for repairs as it may conflict with the preprinted pns but then again it may not but it sends up a HUGE red flag- read what is this seller trying to hide?

One compromise may be to let them do their inspections and if they come back with a list of items to offer to buy a home warranty- some new buyers just need a back up plan since so many are putting all their money into their homes.

It used to be BUYER BEWARE most agents now say DISCLOSE, DISCLOSE, DISCLOSE!

Personally I think you are alittle ahead of yourself. You are in a great position you had already come to terms with not selling so clearly you don't have to...negotiate the price, let them know there is no money for repairs, let them do the inspection. Worst case scenerio they find a problem you didn't know about and don't buy your house but now you have that knowledge too. Best case scenerio they do the inspection and feel so good about the price and condition that they buy the house and everyone WINS- my favorite outcome to any real estate transaction!!!!!!!!

newgardenelf as you say it is based on state laws. In my state $500 paid at close means I do not have to fill out a disclosure form when I sell. Other states do not have disclosures. Some states have very small disclosure forms, some lengthy, entailed forms. As always, YMMV.

Your best bet busyasabee is to have a good Real Estate attorney review any contracts you sign when buying or selling a home regardless of realtor representation.

xamsx- I agree have a real estate attorney review the contract. If you are in a state that does not have disclosure even more reason to understand the inspection clause.

I sold as is. Paid just a little toward closing. WHen I moved, I got a substantial amount toward closing. However, in this market if I didn't have to sell, I wouldn't. Its crazy out there and pricing are dropping like mad. Don't give your house away...........

In my state (Oregon) the standard contract states that the home is being sold "as is", and that there is no warranty on the home. Buyers are always going to want to renegotiate if the inspection report turns up problems. Sellers can always say no.

UPDATE ~
I spoke with my agent, and this is the course of action we are taking ....$321K + 14K closing help + home warranty + inspection in 5days + closing end of month.

my agent persuaded me to NOT put in the AS IS clause because it might freak out the buyer.
Instead he wrote in the contract that if anything comes up in the inspection that the buyer wants fixed, I have the right to refuse and to terminate contract. He assured me this is my clean solid out.

Hopefully I'll know tomorrow if this is ratified.

"Instead he wrote in the contract that if anything comes up in the inspection that the buyer wants fixed, I have the right to refuse and to terminate contract. He assured me this is my clean solid out."

I agree with your agent, but usually in that situation you'll be forfeiting the escrow - if you want to keep the escrow it generally has to be the buyer who terminates the offer. Then again, in this market it would be unusual for a buyer to offer much escrow in the first place. You didn't mention how much it was but I'll bet its pretty small.

the escrow given by the potential buyer was $3200

the escrow given by the potential buyer was $3200

I think that you mean the earnest money, which is held in escrow until closing.

I'm happy for you that you came to a decision, but I would never have accepted that contract giving them $14,000 in closing without adjusting their offer price at least an additional $5000.

If their inspector brings forth a problem and they walk, you will then have to disclose the problem. Then what? Are you prepared to reduce the price further?

terriks ~ thanks for the correction... I'm a little bit sleepy.....

redcurls ~ the house is in tip top shape, no issues...it's just I want to cover myself in case the potential buyer decides to nickel and dime me because with the way this market is going, the buyer will have a wish list of credits which I have no intention of entertaining. As far as I'm concerned if he wants anything fixed he can use part of the 14K closing he's getting to go towards paying for it. We've tried to adjust their offer price, but they are not budging.

As I mentioned in my earlier post, I was planning on pulling this house off the market when the listing expires in a couple of days, but it just so happened that a potential buyer made the offer last night.....so if the buyer walks I'm fine with it. It just means that buying my dream house will be put on hold because I don't plan on reducing the price a penny more on my current home.

Not to hijack your thread but here's an example of a MLS listing where the seller puts in all sorts of restrictions (just happened on this while I was looking) Fairly specific about something...not sure what.

MAKE OFFER! All offers must be accompanied by buyers pre-qualification letter or proof of funds.Seller reserves the right to choose place of settlement,closing office, escrow or attorney. This contingency to all offers accepted or counter offers presented back to buyers cannot be changed in any way. Seller no longer pay's for the owners title policy, this must be noted on the contract that the seller will not pay for this. If a buyer is requesting the seller pay this it will be treated as a concession and must be worked into the offer. All offers should have 3% of the purchase price for earnest money. The seller reserves the right to accept the offer of their choice regardless of the order in wich they are recieved, countered offered or presented from a multiple offer situation. The seller requires all closing dates to be 45 days from the date of acceptance.

Wowzers, Mary! And, do I need to salute the seller's also? :)

Sounds like a seller who's quite miffed about the current pricing trends in his/her neighborhood? lol

Thanks for posting that. It got my morning off with a chuckle.

/tricia

marys1000 MAKE OFFER! All offers must be accompanied by buyers pre-qualification letter or proof of funds.Seller reserves the right to choose place of settlement,closing office, escrow or attorney. This contingency to all offers accepted or counter offers presented back to buyers cannot be changed in any way. Seller no longer pay's for the owners title policy, this must be noted on the contract that the seller will not pay for this. If a buyer is requesting the seller pay this it will be treated as a concession and must be worked into the offer. All offers should have 3% of the purchase price for earnest money. The seller reserves the right to accept the offer of their choice regardless of the order in wich they are recieved, countered offered or presented from a multiple offer situation. The seller requires all closing dates to be 45 days from the date of acceptance.

Sounds like someone was burned a time or two and now wants to make sure the buyer can actually afford their place. Either that, or they had potential buyers play games and they don't want to deal with the games any longer. Unfortunately, this ad just makes these people seem like difficult sells rather then frustrated sellers.

marys100 -- sounds like the guy selling is an attorney

Its funny, its an ancient 2 story farm home in the middle of nowhere that, despite being "historical" doesn't have much of anything going for it. In the picture it looked like they cut down the line of single trees on one side so now everyone driving down the rural can see you when your outside. Literally, the stumps are in the front of the picture. Its not an expensive place.
I thought maybe they got burned on title buying it if its historical?
And frankly that bit about being able to accept any offer that comes in sound illegal - if they should be so lucky which I doubt.

It says MAKE OFFER! He** I'd be scared to offer anything but more than what they asked:)

The seller reserves the right to accept the offer of their choice regardless of the order in wich they are recieved, countered offered or presented from a multiple offer situation.

Marys1000: "And frankly that bit about being able to accept any offer that comes in sound illegal"

Why on earth would you think that sounds illegal? An offer to sell does not obligate the owner to do anything whatsoever. A seller can accept (or not accept) any offer he wants. (Of course, he can't refuse to sell to one person simply because of their race, religion, etc, and then turn around and sell it to someone else, but that is an entirely different issue.)

Mary1000--More than anything else, that sounds like a lender owned property. I see those kinds of restrictions all the time in REO's. It's sort of a signal to me. (One lender insisted buyers be pre-qualified through their online system. They didn't have to use them for financing, but did have to get a letter from them. The irony is, is that this particular lender is one of the largest and one that is really hurting right now due to their subprime loans.)