In the world of real estate, the term “as-is” can mean different things to different people. When buying real estate, you might think “as-is” equates buying to some dilapidated money pit. When selling real estate, you might think “as-is” means you’re able to pass on your problems to the next person without any repercussions. However, neither are necessarily true. If you’re in the market to buy or sell, it’s important to understand the ins and outs of buying or selling real estate “as-is” Kansas or Missouri. Here’s what you need to know:
What Does “As-Is” Really Mean?
In Kansas and Missouri, unless it’s a new construction, real estate is generally sold “as-is.” This essentially means the seller is not obligated to make any repairs or improvements to the property before the sale. It also means the buyer is not required to buy the property if it’s not right for them. These things are negotiable, so this is an important conversation to have with your real estate agent prior to writing or accepting an offer.
“As-Is” Doesn’t Equal “No Negotiating”
Even with an “as-is” sale, most local real estate contracts provide the buyer the opportunity to inspect the home prior to purchase without losing their deposit if something comes up during inspections. This obviously depends on what’s in the contract. For example, 2020-2023 was such a strong seller’s market, many buyers waived inspection clauses in their offers just to stay competitive in multiple offer situations. That’s not normal.
In a normal real estate market, buyers will ask to do inspections.
While sellers may be leery at first of buyers asking to do inspections, allowing inspections can drastically reduce your chances of a future lawsuit (speak now, or forever hold your peace). If the inspection reveals significant issues, the buyer can typically choose one of the following options:
- Renegotiate the Contract: The buyer can request the seller make repairs or give a price reduction to compensate for the problems. The seller can choose to agree or disagree with such requests based on the other options they have on the table. This can be one of the most emotional parts of a real estate sale. Let your agent guide the way.
- Walk Away: If the issues are severe enough, the buyer may determine they do not want to proceed with the sale and terminate the contract. In this scenario, the buyer is typically able to get their earnest money back.
Buyer and Seller Obligations
- Seller Disclosures: In Kansas and Missouri, sellers are required by law to disclose any known defects or material facts with the property. This can include things like foundation issues, mold, leaky basements or fire damage. It can also include any zoning or development changes occurring nearby. While sellers do not have to be experts in electrical, HVAC, roofing, plumbing, or structural issues, they do need to disclose what they know. They also need to disclose any major issues that have been repaired in the past, or any insurance claims made on the property. When in doubt, always disclose!
- Buyer Beware: The onus is on the buyer to conduct their own due diligence and find any unknown defects. This may include:
- Home Inspection: A professional inspector will assess the property’s overall condition, including the structure, systems (electrical, plumbing, HVAC), and appliances. They may recommend additional, specialized inspections. See “9 Crucial Questions to Ask Before Hiring a Home Inspector“
- Sewer Scope: determine where the sewer line is located (under the street?) and make sure it’s is in good condition
- Mold and Radon Testing: environmental hazards can cause health problems
- Crime and Registered Offender Maps: know who lives nearby and relative safety of the area
- Pest Inspection: checks for termites, bed bugs, and other infestations.
- Survey: where are the actual property lines? (hint: not always where you think). Are there easements you don’t know about?
The Bank and/or Appraiser Have Final Say
Just because the buyer and seller agree the terms of a sale, that doesn’t mean the bank and/or appraiser will go along with it. Certain loan programs require a minimum conditions and standards for the property. Even if a buyer intends to address these issues after the purchase (i.e. buying a fixer upper), the bank may refuse to lend with those conditions present. It’s always a good idea to evaluate these scenarios with your real estate agent prior to writing an offer. Otherwise, you might have your loan denied after spending significant money on inspections.
If you’re the seller it could mean you have to go back on the market to find another buyer. This can cost you time, money and leave potential buyers wondering if there is something wrong with your property.
Key Takeaways:
- “As-is” sales are common in Kansas and Missouri.
- Sellers are obligated to disclose known material defects, but aren’t necessarily required to fix anything.
- Buyers are responsible for conducting inspections at their own discretion.
- “As-is” doesn’t mean there’s no room for negotiation.
If you’re interested in buying or selling real estate in the near future, I’d love to review your options with you. Call anytime!
Justin Rollheiser – REALTOR®
Keller Williams Realty | Diamond Partners Inc
13671 S Mur-Len Rd | Olathe, KS 66062
Direct 913-800-7653
Office 913-322-5878
Comments or Questions?