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If you\u2019re planning to sell your home this spring, you\u2019ve probably heard it\u2019s a strong market for sellers. And that\u2019s true in many areas and price ranges, especially if you price your home well and get it in front of the right buyers. So there\u2019s a good chance that you could find yourself in a multiple-offer situation, which often leads to not just higher prices, but also more aggressive terms.<\/p>\n
One way buyers try to sweeten their offer is by adding an \u2018as-is\u2019 clause. On the surface, that sounds great\u2014no haggling over repairs, no headaches, just a clean sale. But before you assume you\u2019re entirely off the hook, let\u2019s talk about what \u2018as-is\u2019 really means in practice. Because as many sellers have learned, saying \u2018as-is\u2019 and sticking to it aren\u2019t always the same thing.<\/p>\n
\u2018As-Is\u2019 in the Heat of the Moment vs. \u2018As-Is\u2019 After the Inspection<\/h3>\n
When multiple buyers are competing for a home, many of them will do whatever it takes to get their offer accepted, which sometimes includes offering to buy the home \u2018as-is\u2019 to beat out the competition.<\/p>\n
But if a buyer\u2019s offer includes an inspection contingency\u2014even with an \u2018as-is\u2019 clause\u2014they still have the right to inspect the home, and probably even request repairs or credits depending upon how the contract is worded. <\/p>\n
Some buyers go into an inspection fully intending to take the home as-is, but once they see the report, their mindset shifts. Suddenly, those small quirks they were willing to overlook during the bidding war feel like deal-breakers. But it can also be that they find some significant defects that would be difficult for any buyer to overlook. <\/p>\n
No matter how big or small the issues they bring up are, you have to decide whether to hold them to their word and refuse any negotiations, or hear them out and decide if compromising makes sense.<\/p>\n
Before You Take a Hard Stance, Consider These Key Factors<\/h3>\n
It\u2019s tempting to take a firm stance when a buyer starts changing their tune after a home inspection. After all, they agreed to buy \u2018as-is,\u2019 right? <\/p>\n
But before you draw a hard line, it\u2019s wise to consider the potential ripple effects. Here are a few key things to keep in mind before making your next move:<\/p>\n
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- Not All Repair Requests Are Created Equal<\/strong>\n
If a buyer comes back with a nitpicky list\u2014things like a loose doorknob, a dripping faucet, or an older but functional water heater\u2014you\u2019re well within reason to remind them of their \u2018as-is\u2019 promise. <\/p>\n
But if they uncover major issues\u2014foundation problems, mold, or roof leaks\u2014you have to ask yourself: Will another buyer overlook these problems, or will they bring them up, too?<\/p>\n
Even if this deal falls through, those issues won\u2019t go away. And now, you\u2019re required to disclose them to future buyers.<\/p>\n<\/li>\n
- Don\u2019t Bank On the Back-Up Buyers<\/strong>\n
Let\u2019s say you refuse to budge, and the buyer decides to back out. No big deal\u2014you\u2019ll just go to the next highest offer, right? Maybe. But will those backup buyers still be as interested now that the competition has cooled down? And will they be willing to pay the same price?<\/p>\n
A deal falling apart due to inspection concerns can also raise red flags for future buyers. Even if the issues aren\u2019t major, people tend to wonder: What scared the last buyer away?<\/p>\n
The last thing you want is for a simple repair request to get turned into something bigger than it is in the mind of a back-up buyer, and then end up having to put your home back on the market.<\/p>\n<\/li>\n
- Relisting Raises Red Flags<\/strong>\n
If you have to relist, will you get the same level of interest and competition you had before? Maybe, but it\u2019s not guaranteed.<\/p>\n
A fresh new listing is exciting. A home that comes back on the market? Not so much. If your home was in a bidding war one week and suddenly reappears, buyers are certainly going to notice and wonder why.<\/p>\n
This could easily lead to new buyers presuming there\u2019s something wrong with your home and avoiding it, even if there really isn\u2019t a significant issue with it. And even if they don\u2019t avoid it, they may feel less compelled to offer you as much as the previous buyers did, simply because the house has been on the market for a while.<\/p>\n<\/li>\n<\/ol>\n
So, let\u2019s say your buyer wants a $3,000 credit for repairs. Your gut reaction is to say no and move on. But if you reject them and the next buyer asks for the same thing, have you really gained anything? Worse, what if you have to lower your price to attract another buyer, or they come up with an even bigger inspection request? <\/p>\n
Sometimes, letting the buyer slide on the \u201cas-is\u201d clause is a smarter financial move than sticking to your guns.<\/p>\n
Every situation is different, and there\u2019s no universal right answer. But if you stay flexible and strategic, you\u2019ll put yourself in the best position to close the deal on your terms, without unnecessary setbacks. <\/p>\n
So, if you\u2019re selling this spring, get ready for strong offers and competitive buyers. Just don\u2019t assume \u2018as-is\u2019 means you\u2019re completely off the hook. A little negotiation can go a long way toward keeping your sale on track and maximizing your final price.<\/p>\n
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The Takeaway:<\/h4>\n
Receiving an \u2018as-is\u2019 offer may sound like an ironclad commitment from a buyer, but that doesn\u2019t always mean they won\u2019t ask for repairs or credits once the contracts are signed. Before you dig in your heels based upon the principle of the matter that they\u2019re backing out of their promise, think about the big picture. <\/p>\n
Sometimes it makes more financial sense to give a buyer a credit or agree to repairs, than to risk starting over with another buyer who ends up offering less, or even requesting the same (or more) in credits and repairs.<\/p>\n<\/blockquote>\n<\/div>\n
- Don\u2019t Bank On the Back-Up Buyers<\/strong>\n