New to Real Estate · Albany, NY · Member since 2018 · 2 posts · 0 votes
Hello all,
I'm considering making an offer for a house being sold "as-is." I'm aware this means the seller is not willing to pay for anything wrong with the house. My question is, if I find something I do not like about the house (structural issues, roof falling apart, etc.) am I able to back out and still receive my earnest money deposit back? Or does "as-is" mean if I am agreeing to buy the house regardless of any issues that are there, and if I walk, I will NOT receive this money back?
If I would 100% get my earnest back in this scenario, I am wondering if this applies to little ticket items as well (bad smell, small leak, etc.) - Is there a minimum price for an issue where I am able to walk and get the earnest back? ex. one bad light switch vs entire electrical system needing to be replaced...
Investor · Austin, TX · Member since 2017 · 352 posts · 374 votes
4y
Hi Andrew! your purchase agreement will outline the terms under which your earnest money can be refunded. Like you said- typically buying something "As-Is" means the seller will not agree to make any repairs but most sale contracts will still allow you an inspection period (aka contingency period, option period or due diligence) during which you should be able to withdraw and still receive your earnest money refund if the scope of repair is beyond what you're comfortable with.
in summary, all purchase agreements are different, yours will likely have explicit language regarding your earnest money and when it goes hard. Most agreements allow you an inspection period during which you can withdraw and still get your earnest money back even if agreeing to purchase a property "As Is".
Contractor · Scottsdale, AZ · Member since 2010 · 2k+ posts · 3k+ votes
4y
I'm here just to echo what Victor has said. In my market, in my experience, and in my contracts, my earnest money is still 100% refundable until the end of my due diligence window, regardless of whether or not I put the words "as-is" into the contract.