The market is very difficult right now…Listings are at a premium and buyers are back to offering above list price offers, waiving appraisal contingencies and worst of all being coached by their agent to offer AS-IS contracts on the property they desire. Frankly if we represent a buyer, that’s the BEST way to go! (Don’t understand? Read the following cut from our As-Is purchase contract and see what I mean. Notice what the section is even called)
If buyer determines in buyers sole discretion, that the property is not acceptable to buyer, buyer may terminate this contract…..That’s a lot of power for the buying side to have and what happens is after inspections are done the buyers come to the sellers and say…fix this and this and this or we will walk! Wait, you made an as-is offer!!
Here is what I am doing to combat this practice on As-Is offers that come in now…I add the following verbiage to the special clauses section of the contract:
“Buyer may not cancel contract unless inspection repairs estimates exceed $5000” (Or some figure at or around 2% of the sales price) This ties the buyer to the property unless something drastic is wrong and only seems fair. Often we have competing offers and buyers simply get into a “one-up” contest with each other so having them TRULY mean as-is when they offer as-is makes perfect sense, don’t you agree? (You would if you were the seller!)