Why do inspections on a home that's "as-is?"
In an "as-is" sale, you are agreeing to accept the property for, X amount in its "as-is" condition. What is the "as-is" condition? We don't really know right now. During your investigation period, you have a right to inspect the home in any way that you see fit (non-destructive inspections unless with written permission from the owner to do things like make hole in a wall, etc.). After you complete all your inspections and investigations, you will have a much better idea of what the current 'as-is' property condition is. Then you can decide if you still feel that you are willing to pay X amount with all your new knowledge. Let's say that we find out that the sewer line is totally collapsed and that the foundation has serious defects and that the cost to repair this home exceed what you were expecting by $25k. Well you could decide that you are still willing to move forward at your original purchase price, or you could show the seller all of your reports and price quotes (from licensed contractors is best for negotiation purposes) and ask for a $25k concession. The Seller might say "yes" or the seller might say "no" or the seller might agree to a partial concession. There is no way to know at this time what the seller might agree to. Much depends on how much you ask for and what other options the seller has. For example, if there are backup offers for a price that is higher than your purchase price, then it is unlikely that the seller will agree to any concessions and then you will have to decide whether or not you want to move forward.
Remember this- you will never be forced to purchase the home at a price that you feel is more that it's worth after you have completed your inspections & investigations. On the other hand, you cannot force the Seller to agree to a price that is lower than the amount that is currently specified in the purchase agreement. If Buyer and Seller cannot agree, then both parties are free to go their separate ways, cancel the contract, and you have a contractual right to a refund of your initial deposit funds from the escrow account. NOTE: any money you spend on your inspections/investigations and appraisal are not refunded- that money is gone.
In an "as-is" sale, you are agreeing to accept the property for, X amount in its "as-is" condition. What is the "as-is" condition? We don't really know right now. During your investigation period, you have a right to inspect the home in any way that you see fit (non-destructive inspections unless with written permission from the owner to do things like make hole in a wall, etc.). After you complete all your inspections and investigations, you will have a much better idea of what the current 'as-is' property condition is. Then you can decide if you still feel that you are willing to pay X amount with all your new knowledge. Let's say that we find out that the sewer line is totally collapsed and that the foundation has serious defects and that the cost to repair this home exceed what you were expecting by $25k. Well you could decide that you are still willing to move forward at your original purchase price, or you could show the seller all of your reports and price quotes (from licensed contractors is best for negotiation purposes) and ask for a $25k concession. The Seller might say "yes" or the seller might say "no" or the seller might agree to a partial concession. There is no way to know at this time what the seller might agree to. Much depends on how much you ask for and what other options the seller has. For example, if there are backup offers for a price that is higher than your purchase price, then it is unlikely that the seller will agree to any concessions and then you will have to decide whether or not you want to move forward.
Remember this- you will never be forced to purchase the home at a price that you feel is more that it's worth after you have completed your inspections & investigations. On the other hand, you cannot force the Seller to agree to a price that is lower than the amount that is currently specified in the purchase agreement. If Buyer and Seller cannot agree, then both parties are free to go their separate ways, cancel the contract, and you have a contractual right to a refund of your initial deposit funds from the escrow account. NOTE: any money you spend on your inspections/investigations and appraisal are not refunded- that money is gone.
