As Is Home Selling
There’s a lot of confusion about the whole as-is-with-a-waiver-of-redhibition that’s used in New Orleans home sales. Buyers are concerned that they’ll be stuck purchasing a home that’s not quite up to snuff. Sellers dig their heels in over any buyer requests because “I’m selling it as is, right?”
What does As Is mean in New Orleans?
The legal answer is found in the purchase agreement, which states that the property will be transferred in “as is” condition. Additionally, the buyer waives their right of redhibition, which means they have no cause of legal action against the seller after the sale for defects that are later uncovered. Note: this waiver does not apply to fraud on the part of the seller
The problem with focusing on just this one section of the Louisiana purchase agreement is that sellers often forget that there is still an inspection and due diligence period in our contracts. While you can certainly decide that you won’t do any repairs after inspections are completed, buyers are protected and can cancel the contract and get their deposit back if they uncover something that makes them uncomfortable with the purchase.
We’ve seen plenty of homes that go on and off of the market because the seller is not willing to make a repair that causes buyers to walk away every time. Eventually, the price gets reduced and the house gets sold. But a lot of time and energy has been expended to get to that point.
What’s our advice?
A pre-inspection is a really good idea, especially for homes that are a bit older (ie, almost every house in New Orleans). This eliminates the surprises that can come up after you’ve already accepted a contract. After the pre-inspection, you’ll be able to decide what repairs you’re willing to do and take care of them before going on the market. Or, you’ll be able to disclose all of the known defects and price the house to match the condition.
Whether your house needs repairs or not, the ultimate deciding factor for any buyer is going to be price vs condition. Narrow that gap, sell it as is, and get moving.