Scary Things On The MLS?


Not as Terrifying As You Think?

Happy Halloween!

The MLS.  It’s harmless… or is it?  There are lots of things to legitimately be afraid of.   Let’s talk about adding, or seeing, “as-is” on a listing.  Should you be afraid? Some people are.

Afraid of “AS-IS” Home for Sale?

When buyers see the words “as is” it sometimes freaks them out.  They think that there could be major issues with the property and that they won’t have a right to inspect it.  Well that’s not entirely true.  Even though it says “as is,” you can request in your offer to do a home inspection and leave in the right to opt out if substantial repairs are needed (yes, the seller might say “no inspections” and that IS scary! But sometimes still manageable).  Although the sellers may not be willing to fix any issues, they could still do a seller credit or even reduce the price by $5K or $10K. And since “As Is” scares away so many buyers, it will potentially have less competition when making an offer, and thus a lower purchase price. 

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Scary or Not Scary?

I actually love helping buyers with “as is” properties because there is usually less competition.  Estate sales are great as well and most of the time they are listed “as is.”  But consider it differently if you are selling.  In this case I don’t think sellers should ever us “as is.”  In the state of Virginia almost all homes for sale are “as is” already, so why even put that into the MLS remarks?  If you are making a purchase more buyers will be scared away because it makes them think that there could be something substantially wrong with the home.  Go figure.

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Buying As Is Tips

  • Everything is as is.  Virginia is existential like that.
  • You can still ask for a home inspection on “as is,” and you can still have the right to opt out.  Some sellers say they don’t have cash so they won’t fix it-but they can do a 5K, 10K price reduction
  • Its not something to scared of, estates do it as well (aka “20 heirs waiting for their checks, we’re not going to have them pay to fix it but maybe drop price a little”).
  • Go after homes with as is, because it tends to scare off other buyers which is good for you

Selling As Is Tips

  • In VA almost all homes are “as is” anyways, so why put that in your advertising?
  • A buyer could view an “as-is” notation as nickel and diming, or “hey, were not going to fix anything.” It makes the buyer think that there are major issues and that they wont have a right to inspect it.


Frank LLosa

Principal Broker, DC, VA, MD Frankly Real Estate Inc

* Never too busy for you!

  • 9
  • October
  • 2014

5 Responses to “Scary Things On The MLS?”

  1. Missy says:

    I’m extremely interested in an As-Is foreclosure that is priced just below the market value. I would like to offer less and not use a buyer agent. It will be our second home purchase and I feel fairly competent in the legalese of offer writing. My husband is a construction project manager so I have no qualms about us not finding defects with an inspector. Is there a major drawback I’m missing on not using a realtor to buy? I will stipulate in our offer that the listing agent must rebate their percentage over 3% to the bank. Will the bank balk at a buyer without an agent?

  2. Eric Blackwell says:

    It seems like I have to explain this every day.

  3. Brian Cantrall says:

    I know exactly what you mean by buyers feeling iffy when they see a home for sale “as is.” You really do a great job pointing out the positives of this situation, at least from a realtor point-of-view. Thanks!

  4. vina maruco says:

    Great advice! Looking to purchase home in md within 6 months. Preferably pte forcloseure or short sale. Thanks

  5. says:

    That is where people don’t understand contracts. The listing agent has a contract with the seller. A buyer can’t come in and change that commission. Sure you can ask for whatever you want, but that doesn’t change what the listing agent makes. As for reasons for having good representation, you would have to read another dozen blog posts here to fully digest that. For what it is worth, I personally hired an agent, when I bought! So there is more to it then just finding a home. Would a lawyer represent themselves? Maybe, but they shouldn’t.

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