Selling a home in Arizona with an As-Is Addendum

Most people see their home as perfect, even if the toilet only flushes when you pull the head phone cord tied to the float… Those are just quirks, it’s what gives the home character right? It’s a nice thought, but most people when shopping for their home don’t want to inherit those little quirks.

If you’re thinking of selling your home ‘As-Is’, you should know that the general public now views your home as being a distressed sale. (such as a short sale or foreclosure) Your quirks are now giant red flags of disrepair and bigger problems ahead. You are not going to be able to sell your home ‘at value’. Essentially, it’s putting a big “Clearance” sign on your home. Buyers will believe that there are more problems with the home than what can be seen and they may believe they’re looking at a potential money pit. Fewer buyers will ever visit the home, removing it from their list before they’ve giving it a chance. There are many reasons why you may feel you need to sell this way, such as financial or familial issues. However you should discuss this with your REALTOR to ensure that the matter is handled correctly and in your best interest. If you’re selling because of financial issues, your agent may be able to offer a better solution than the As-Is.

The misconception to an As-Is is that the seller believes the buyer no longer has a right to ask for repairs. That is untrue. The As-Is addendum should be seen as nothing more than a mindset. You’ve told the buyer that you may not be able or willing to make repairs, however your contractual responsibilities are not removed because of this. Prior to entering into an As-Is contract, you should read through both the contract and the As-Is addendum to the contract carefully. You, as the seller are still responsible for maintaining the utilities, keeping up the property, ensuring that warrantable items are in working order and conveying the property in the same condition as when the buyer agreed to purchase it.  It does not negate your responsibility to make repairs if the water heater breaks before close.

Don’t be shocked when the buyer asks for repairs during their inspection period, as that is their contractual right to do so. You’ve set the mindset, and whether the As-Is was in play or not, you are never obligated to make those requested repairs. The buyer will not be surprised when you say no to their requests because you have already set the expectation. If the buyer asks for repairs, you should carefully consider the repairs with a level head. Before rejecting their request for repairs, decide if the cost of the repairs is worth losing the sale over. Sometimes it is, and sometimes it isn’t.  Your agent can help you obtain bids from the correct source, or negotiate a small credit with the buyer in order to keep the sale in tact.

Buying a home in Arizona with an As-Is Addendum


An As-Is sale is a great opportunity for you to obtain a home at a great bargain. In most cases, an As-Is sale means that the property is distressed. Either a Short Sale, or a foreclosure property. You may inherit some ‘charm’, but you’ll also inherit equity making it all worth it. There are also occasions where the property is As-Is due to financial or familial issues such as divorce, job loss or death. Before you cross the home off your list, consider this… most buyers will automatically cross the home off their list, ensuring there is fewer competition on the home. You have an opportunity to buy this home for less than it’s worth, gaining instant equity in the home.

The As-Is does not negate your right to inspect the home. You are still contractually allowed to inspect the home and ask for repairs. The As-Is addendum is there to set the mood, you might say. The seller is letting you know that they may not be able or willing to make any repairs. In most cases the seller is in a tight situation, they simply cannot afford to put GFI outlets in every area they are now required (but not when the home was built). It would be advisable to inspect the home on your own, prior to hiring an inspector. If the inspection shows that there is more than you’re willing to take on, sit down and discuss the situation with your agent. It is wise to collect bids on repairs during your inspection period. Categorize your repairs in 3 columns… 1. repairs that you’re ok with taking on someday.  2. Repairs that you are ok with taking on. 3. Repairs that truly make or break the sale.  Items that make it into column 3 are crucial… those are repairs you simply cannot live with. These may include a crack in the pool or a foundation crack that is causing the home to sink. When you’re wrapping up your inspection period and preparing your request for repairs, you can try for as many repairs you want, but you only have one shot, choose wisely. If the seller feels that they cannot handle the entire list, they may say no, rather than countering it. In an As-Is sale, you have been warned, so I highly advise you only request items that make it into column 3.


At the end of the day, in the case of selling your home, I’d advise a free consultation so we can discuss the options (there are so many).  If you’re buying a home that has an As-Is addendum involved, I can help navigate with my experience in construction. 🙂

Whether you’re buying or selling your home in Phoenix, Tempe, Chandler, Gilbert or Mesa… call me today to discuss the process. 480-788-3232 |

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