Hawaii Randy's Real Estate Opinions: Is AS IS As Is?

Is AS IS As Is?


Confusing Isn't It?

The most confusing term here in Hawaii is "As Is".  If you ask several Realtors "What is As Is?" you will get several different answers.  You will also see a modern day version of the soft shoe.  I even heard the question asked in GRI classes and saw the instructor tap dance a little.

The way I describe it according to our As Is Addendum is: What you see is what you get.  The buyer however does not give up his rights during the escrow process.

  • The seller must fully disclose all material facts.
  • Fraud is not protected by "As Is"
  • The home is sold without warranty.
  • The As Is does not negate the need for a termite inspection or the survey.
  • The addendum states that the seller will not be making repairs other than those agreed to in the DROA.  It also states that the buyer can reject based on the home inspection (C-51 in the Hawaii DROA). 

The last one is where the arguments breakout.  The buyer finds things he won't live with and asks for repairs.  The seller comes back with what part of As Is are you not understanding?  The buyer comes back with fix it or we walk.

I had a great example of this where I represented the buyer.  This home had been recently remodeled.  It was listed as completely remodeled and in excellent condition.  My clients saw it and fell in love.

We brought in the home inspector and love turned to like.  The remodeling was done by an obvious amateur.  The plumbing, electrical and carpentry repairs all looked nice, but not done correctly.  Our best estimate was $3500 to $5000 to correct the errors.

We responded the home inspection report by asking for a credit and sending a copy of the inspection report.

The initial response from the seller's agent was this is As Is what do you mean you want a credit? 

I invited the agent and/ or their seller to walk through the home with me, to see the identified problems.  I also reminded the agent that if this sale dies they will need to disclose these discovered problems to future buyers.  After a short period of time they agreed to the credit.  The reason we asked for the credit was we didn't want the same person fixing doing the repairs.

Now the home has closed. 

There was an enclosed back porch that had no building permit.  This was the original reason they wanted it sold "As Is".  The seller properly disclosed that and all repair items we identified were signed off by the buyer.  The only thing that the seller would be liable for later would be if the failed to disclose a material fact.



Randy L. Prothero, REALTOR®

Broker-in-Charge, ABR, AHWD, CRB, CRS, e-PRO, GRI, MRP, SFR

eXp Realty

Team Leader - "The Prothero Group"

Randy Prothero is well established as an expert in working with military / VA clients and first time home buyers.  His home seller's (listing) campaign is one of the most aggressive marketing programs in the area.  His luxury home listings sell faster and for more money.

Based out of Mililani, Hawaii. Randy services the island of Oahu (Honolulu County) Performs mediations and ombudsman services for the Board of Realtors.  To improve overall professionalism in his area Randy also offers classes for real estate agents. 

www.HawaiiRandy.comOahu (Honolulu County) Property Search  Hawaii Military Relocations

Comment balloon 8 commentsRandy Prothero • November 26 2006 02:08PM


Hey Randy,

I understand,   AS IS,  is what you see, what you get, no claims back, you need to check everything in detail, if you are willing to buy something "AS IS"   ,  good blog :)

Ray Saenz

Posted by Ray Saenz, Homes for Sale in Laredo, TX - Texas, Realtor (Exit Realty Laredo) over 12 years ago
Caveat Emptor comes to mind...Did I spell that right?...Google doesn't do latin...TLW...ROAR!
Posted by "The Lovely Wife" (Broker Bryantnulls Wife) The One And Only TLW. (President-Tutas Towne Realty, Inc.) over 12 years ago
What most Sellers and Realtors don't understand is that an "As Is" contract is to the advantage of the buyer. The buyer can reject the property and walk from the deal. For the Seller it's better to negotiate "repair limitations" instead of As Is. At least that way the Seller can make repair issues right and continue with the deal. Assuming the seller is not aware of any issues and something is uncovered in the inspection then the seller should have no issue making the repair or giving a credit. 
Posted by Bryant Tutas, Selling Florida one home at a time (Tutas Towne Realty, Inc and Garden Views Realty, LLC) over 12 years ago

Ray - Always check out everything is a good policy.

TLW - In real estate it should be more like buyer and seller beware.  Both have a fair amount of liability.

Bryant - In Hawaii our contracts read that the buyer can walk away for several reasons anyway including the home inspection whether ot not they use and As Is Addendum.

Posted by Randy Prothero, Hawaii REALTOR, (808) 384-5645 (eXp Realty) over 12 years ago

I swear that I wrote a comment on this hours ago.  I must have failed the human test and not noticed.

This summer I tried to sell a house where I represented the buyers.  The sellers were not very happy with our offer and told us that they would not be renegotiating anything after the inspection.  This made my buyers extra cautious, so they ran some 'extra' tests during the inspection (to the tune of about 700 bucks).  Guess what they found?  Black mold and radon.  Suddenly the stubborn seller was much more agreeable to 'negotiating.'  My buyer's however, were disillusioned and found mold, even after professional remediation, to be unacceptable.  Guess what the seller had to do.  Fix it and disclose it and keep on trying to sell the house.   

Posted by Maureen Francis & Dmitry Koublitsky, Coldwell Banker Weir Manuel (Coldwell Banker Weir Manuel) over 12 years ago
M&B - Great instincts, the seller saying that should always be a red flag.
Posted by Randy Prothero, Hawaii REALTOR, (808) 384-5645 (eXp Realty) over 12 years ago
You nailed another one of my favorites with this one. The "As Is" in Hawaii basically comes down to, "It's a two bedroom, and will not be converted to a three bedroom." I generally see it as a notice to potential buyers that if they are going to ask for give backs, don't ask for too much! In reality, until the C-51 inspection is completed, everything is still negotiable.
Posted by Michael S. Mackey, REALTOR ABR, CRS, GRI, RSPS (CENTURY 21 All Islands) over 12 years ago
Michael - You didn't stumble or tap dance on that.  You must be a CRS agent.
Posted by Randy Prothero, Hawaii REALTOR, (808) 384-5645 (eXp Realty) over 12 years ago

This blog does not allow anonymous comments