The term “as is” has been around as long as there have been real estate transactions. But its interpretation can be confusing for both sellers and buyers.
To buyers, “as is” translates to “we know this house is a piece of junk and will collapse at any minute unless the electrical system combusts and the structure bursts into flames only slightly before the structural issues cause the dwelling to fall into the center of the earth.”
To sellers, the term means “I have maintained this home all the years I have lived here. It is in impeccable shape. There is not one thing wrong with this house, and I am not going to be held hostage by their inspector for some nitpicking repairs.”
Luckily, in today’s market, most sales are “as is” with “pass/fail” inspections, meaning the buyer can take the home or leave it after the inspection. Of course, as has been mentioned, that does not actually mean what it says.
If the buyer finds major, scary electrical issues, they can propose to walk away from the deal if those issues are not mitigated.
The seller would have to make the repairs if they were to sell the house again or even continue to live there. When sellers accept an offer that has an inspection contingency with verbiage stating the buyer will conduct an inspection and then may ask for repairs, that can mean “as is” to the seller but not the buyer.
Rather than have the buyers feel the house is loaded with issues, the buyers have it inspected and makes requests. The sellers have the option of responding that they will do no such thing. Eureka! “As is” without the utterance of the phrase.
Inspectors care not what the contract says about who is fixing what and are not eager to see a deal go down based on a shoddy inspection on their part. Most use the same forms, and they are loaded with photographs. The leaking sink is caught in the act. There are moisture readers, radon detectors, mold labs, electrical gizmos that register current and flow.
In short, unless the home is being demolished, “as is” means absolutely nothing until after the inspection.
Sale of the Week
When a sale comes through at $10.3 million, that sale would normally include a significant amount of land, usually 10 or 20 acres minimum. However, that was not the case when 1784 Woodsong Drive closed last week for more than $10 million.
The home, designed by Pfeffer/Torode Architecture and built by Grove Park, consists of 13,831 square feet, 4,880 square feet of which is basement space. In this price range, a basement is referred to as a lower level. Those residing in a home of this magnitude are not prone to climbing stairs that are connected to exercise equipment, and the owners have included a commercial elevator.
Of course, there is a vault room for personal effects that might be worth as much as the house, as well as an indoor putting green for the golf enthusiast in the family. The kitchen features the ever-popular LaCornue Range and there is an infrared sauna.
With seven bedrooms, seven full bathrooms and three half bathrooms, there is ample room for sleeping and bathing. The $10.3 million price tag brings the home in at $745 per square foot, which, as strange as it seems, could be a bargain.
In the past, that price might have raised eyebrows and concerns about the marketability of such a property should the owner need to sell. In this case, there would be buyers lining up around Voce to buy the home.
Voce, pronounced Vo-chay, is the Italian word for the English word “voice,’ and the name is understandable as the land was once owned by the late Eddie Arnold, a man who possessed one of the greatest voices of all time. His talent and popularity are evidenced by the fact that he had 147 songs on the Billboard country music charts and sold more than 85 million records.
Voce was developed by Shannon Pollard, grandson of the Tennessee Plowboy, as Eddie Arnold, was known during his six decades of recording. Pollard has created a haven with an eco-friendly, heavily vegetated environment that he says is “a permanent and fitting legacy” to his grandfather.
Aaron Holladay of Parks Realty was both the listing and selling agent, Realtracs shows. In his Realtracs remarks, Holladay said the listing was being recorded for “comp purposes only,” meaning the sale was completed before the listing became active, and a good comp it is.
Richard Courtney is a licensed real estate broker with Fridrich and Clark Realty and can be reached at [email protected].