ATTENTION LOS ANGELES & VENTURA COUNTY HOME BUYERS: What "As-Is" Does and Does Not Mean

The other day, I came across this post from Julia Odom titled AS IS - What's it mean?. Reading Julia's post got me thinking of the "as-is" market here in Los Angeles & Ventura counties. While Julia writes a great post of what "as-is" does and doesn't mean, based on my personal experiences in my market, "as-is" seems to have taken on a whole new meaning.

Apparently (at least around here), "as-is" means that if there are any building code violations, don't count on the seller and/or bank to be taking care of them. Also with BofA and/or Countrywide short sales, "as-is" means that the bank and/or seller will not pay for any delinquent HOA dues regardless of how much they increase during the months it takes for the bank to finally accept your offer.

But what it doesn't have to mean is a deal breaker. With many run-down, dilapidated, dumpy REO and short sale properties that the bank and/or seller refuses to fix, you may qualify for an FHA 203k loan that will allow you to finance the repairs you make after the close of escrow.

So all hope is not lost if you come across a "as-is" property that may have some potential to be a really nice home with just some work to it. Contact me if you want more info on how this loan product can help you.

Via Julia Odom - AS IS - What's it Mean?

With foreclosures and other 'distressed' sales abounding these days you see a lot of listings with two little bitty words: AS IS.

So what does AS IS mean, Jules?

It means that the seller doesn't want to hear you (or actually me, your agent) whine about all the little things that are wrong with the place. It means that they have no intention of fixing anything. It means that you know you're buying this house, warts and all, and you aren't going to come back to the seller after the fact and say that it's their fault you didn't know about the warts. It means buyer be wary.

Well then, what doesn't AS IS mean?

It doesn't mean that there's something horrifying lurking behind the drywall (although there could be). It doesn't mean that you have to go through with the transaction if you find Jimmy Hoffa's body in the basement structural or mechanical problems with the house - you can still ask for and in almost all cases will be granted an inspection contingency. It doesn't mean that this is a bad house. So if you find that your dream home is for sale "as is", don't be scared but do be aware.