I have a "Selling-our-house" question. Realtors or anyone else can answer for me

[URY914]

We're selling the house.
We have a "as-is" sales contract with a cash buyer.
No bank or mortgage company involved.
Even though it is an "as-is" sale, the buyer came up with four items for me to take care of.
They only total about $100 and a day's time so I agreed.
All the appliances in the house are listed in the sales agreement.
The electric hot water heater is 30 years old and original to the house and works.

Here is the issue-
My realtor is telling me to replace the water heater now before the any inspections as done.
She says the buyers insurance company will ask for it to be changed.
I'm thinking her insurance company wishes are not binding to the sale of the house.
It is not a code or life safety issue therefore I don't see me to being required to do it. .
If her insurance company wants it changed, she pays for it after the closing.
I want someone other than my own agent to tell me to do this.

Am I off base here or do I have a point?

Thanks

[Tobra]

It seems to me if this is an issue with the buyer's insurance company, the people buying the house can replace the water heater.

[legion]

The home inspection sets off a second round of negotiations. If they ask for it, you can agree or say no. The buyer can accept or walk and get their earnest money back.

Your realtor seems to be recommending that you change it before hand to avoid having it in a request. I don't see the logic behind that, because the inspector may miss it, or they may decline to ask for it.

[porsche4life]

I've never had an insurance company even ask how old the water heater is or to see a copy of the inspection. But I don't know how it's done in FL. Usually our inspectors will point out the age of the water heater, but if it's functioning and not leaking they won't go beyond that.


Sounds like your agent is playing it safe. Tell her if the buyer requests it you'll do it, but that's only if you feel generous. you don't have to fix anything, but not fixing something allows the buyer to cancel if they so desire. Just something to consider.



*I'm a licensed realtor in AZ, but I didn't sleep in a holiday inn recently.

[Hugh R]

Sold my last house 18 y/o to a newly minted lawyer. Disclosed everything, he sued me as soon as he closed escrow for everything I disclosed. Didn't matter to a judge, he said those were matters of "Fact" for a jury to decide, not matters of "Law" like did he miss some filing statute. I'll never sell a house to a lawyer again.

Disclosure sounds nice, and you think you are protecting yourself. Maybe you are $30-$50K later in legal bills. Insist on binding arbitration in the sales deal.

[look 171]

Originally Posted by legion

The home inspection sets off a second round of negotiations. If they ask for it, you can agree or say no. The buyer can accept or walk and get their earnest money back.

Your realtor seems to be recommending that you change it before hand to avoid having it in a request. I don't see the logic behind that, because the inspector may miss it, or they may decline to ask for it.

safety net for her to ensure the sale or close of escrow so she makes $$$

[look 171]

Originally Posted by Hugh R

Sold my last house 18 y/o to a newly minted lawyer. Disclosed everything, he sued me as soon as he closed escrow for everything I disclosed. Didn't matter to a judge, he said those were matters of "Fact" for a jury to decide, not matters of "Law" like did he miss some filing statute. I'll never sell a house to a lawyer again.

Disclosure sounds nice, and you think you are protecting yourself. Maybe you are $30-$50K later in legal bills. Insist on binding arbitration in the sales deal.

Once I find out a potential client is a lawyer, I normally withdraw my bid and not answer anymore questions. I don't need the headache.

[look 171]

As-is means the way the house sits and nothing else. When we buy homes, we buy them with no contingency, at as-is condition and never ask for anything else because we don't want the owner to change their mind. I wouldn't put in a new heater. The other stuff for 100 bucks I do just to keep peace so everyone can smile. After inspection, they will try and renegotiate again, but that,s not "As-is".

[notfarnow]

When I list a house, I go through it with the homeowner to identify potential inspection issues. Wiring (ungrounded, aluminum, inadequate entrance etc), plumbing (cast iron, galvanized, Kitec), check the attic for venting, insulation, mould. Stuff like that. I don't like surprises

I'll sometimes suggest to my clients that they change oil tanks or water heaters, but generally do so before the house is listed.

Sometimes, it makes sense to leave a couple easy things to do post-inspection. The inspectors really need to go in and find SOMETHING, so if there is some low-hanging fruit, it can leave a couple small, easy things to address so the buyer feels that the seller is being accommodating.

In your case, I'd say leave it and wait to see if it comes up as an issue.

[URY914]

Everyone seems to see this as I do. If the inspector notes it and it is a problem I'll do it or if it doesn't come up until the closing I'll write a check at closing and hand it to the buyer with the plumber's number.

Thanks everyone.

[brock911]

There are usually three phases to every sale, 1) acceptance of offer, 2) removal of conditions (if any expressed) & 3) closing.

I get the "as is" sale, however, are there any conditions that allow for the buyer to walk away if not met?

If so, these are the issues that you must address and usually to the satisfaction of the buyer.

If not, you should complete the items agreed to and hope it closes without issue.

All the best,
Mike

[VincentVega]

Sometimes, it makes sense to leave a couple easy things to do post-inspection. The inspectors really need to go in and find SOMETHING, so if there is some low-hanging fruit, it can leave a couple small, easy things to address so the buyer feels that the seller is being accommodating.

In your case, I'd say leave it and wait to see if it comes up as an issue.

great advice

[Porsche-O-Phile]

Originally Posted by look 171

As-is means the way the house sits and nothing else. When we buy homes, we buy them with no contingency, at as-is condition and never ask for anything else because we don't want the owner to change their mind. I wouldn't put in a new heater. The other stuff for 100 bucks I do just to keep peace so everyone can smile. After inspection, they will try and renegotiate again, but that,s not "As-is".

This.

I'd say "as-is" means "as-is" or their offer is rejected.

[MBAtarga]

Tell the realtor to fund the cost of the water heater replacement out of her commission if she is worried about it.

[bpu699]

Your question is unclear... On the one hand you are saying its an "as-is" sale, on the other hand you are saying that there is an inspection. The two are pretty much mutually exclusive. What exactly is in your contract?

Are you saying you have a legally binding contract that states the property is being sold "as-is," and the sale IS NOT contingent on an inspection and financing?

If so, the buyer needs to buy it, or they risk their security deposit. Period. You don't need to fix anything...

But, it doesnt sound like thats what you have. You are describing a sale that is contingent on certain conditions, such as an inspection.

Playing devils advocate here: "Does it really matter?"

A heater is $600. Thats pissing in the ocean. I wouldn't replace anything until after the inspection, as your buyer may come up with a 100 other things they want...

Bo

(property investor)

[porsche4life]

As is doesn't really mean a whole lot in some states. In AZ you still have the right to an inspection and you can still ask for repairs. As always though, the seller can say no to anything they don't want to do.

[930addict]

We sold our house as-is in California. Some issues came up during the inspection. Rather than fixing it we just knocked a few thousand off the price of the house. For us it was a time thing. We wanted out.

[URY914]

Originally Posted by bpu699

Your question is unclear... On the one hand you are saying its an "as-is" sale, on the other hand you are saying that there is an inspection. The two are pretty much mutually exclusive. What exactly is in your contract?

Are you saying you have a legally binding contract that states the property is being sold "as-is," and the sale IS NOT contingent on an inspection and financing?

If so, the buyer needs to buy it, or they risk their security deposit. Period. You don't need to fix anything...

But, it doesnt sound like thats what you have. You are describing a sale that is contingent on certain conditions, such as an inspection.

Playing devils advocate here: "Does it really matter?"

A heater is $600. Thats pissing in the ocean. I wouldn't replace anything until after the inspection, as your buyer may come up with a 100 other things they want...

Bo

(property investor)

"As-is" still has an inspector involved. We spoke to our insurance agent and there are 4 points they inspect for the BUYER; roof, electrical, HVAC and plumbing. They are to 'advise' the buyer of what they are buying and if anything needs repair or if there a safety concerns.

[look 171]

How's the market out there? Is it on fire? If they are buying cash only, that tells me that they are really interested in the house and don't want to lose it. Do you ahve a back up offer? Your agent should have gone to battle for you on this. Can't make an all cash offer to buy as-its then call for inspection and ask for a thousand things and request $$$ off later and threaten to not close escrow. BS. She really don't want this sweet, for sure deal to go south. I agree with someone who mention that she should fork out the money and have the heater replaced. This one seem too easy a gig for her.

[bpu699]

Originally Posted by URY914

"As-is" still has an inspector involved. We spoke to our insurance agent and there are 4 points they inspect for the BUYER; roof, electrical, HVAC and plumbing. They are to 'advise' the buyer of what they are buying and if anything needs repair or if there a safety concerns.

The inspection is fully optional in most states. Its what you have in the contract that spells this out. Your state may be different...

I have bought and sold tons of property without an inspection...

Bo