Good afternoon from Windy Chicago, Donkeys and Elephants (and assorted other animules) -
The two words for this afternoon - "AS-IS". If you are a Real Estate Professional, is it wise to use these words to describe your listing? Home Buyers - how do YOU react when you see these two little words? Neither buying, selling or working in Real Estate right now - what do these words mean to you?
As a Real Estate Listing Agent, I only use the words "AS-IS" on the MLS and in property promotion and marketing if the property is a burned out home, or an estate sale with no surviving family around to clean and fix it up. I advise my clients these two little words can have a more powerful NEGATIVE impact than those three famous words - "I Love You!" - have a potentially very POSITIVE impact.
Saying "AS-IS," I explain, implies DESPERATION - that you want to sell at ANY price. "Lowball Me." It also says the property is in absolutely horrible condition, even if it is not, and that could thwart otherwise-qualified showings.
Some might not even inquire about a showing on an "AS-IS" listing - and Listing Agents would not even know it, because they didn't get the call, email, or website click.
Those that DO make an offer usually make one that touches the sub-basement, and these potential buyers are hesitant to come up on their offering price, because they, again, see desperation.
Buyers - or you civilians in general - do you feel the same?
In today's market here in Chicago and nearby, there is an exploding number of short sale properties (those whose ultimate sales prices will likely be below the outstanding mortgage balance), bank-owned foreclosed properties, and other distressed properties, whose owners may be in the midst of a divorce or other life-rattling event.
As such, many of their Listing Agents warn boldly, "AS-IS". The sellers, or the lenders, don't even want to entertain later claims for credit or repair during the five-day post-contract inspection period here.
Some of these properties are in rough shape - but some are fine, ranging from somewhat messy, to pristine. But still, the "AS-IS" tag hangs around their necks!
Often times, in practice, buyers that do view the properties first offer low - and then ask for repairs ANYWAY!
Ultimately, the question becomes whether using "AS-IS"language in a listing does more harm than good. If you avoid the two little words in printed advertising and on the MLS, you can still state your "AS-IS" case VERBALLY to the buyer or their agent before or when they present their contract.
But at least you'll get an offer you can react to - rather than a buyer who walked before hand. A buyer neither you nor the seller will ever know!
Your take on this? Please share!
DEAN & DEAN'S TEAM CHICAGO