Inspection Findings, As-Is Language, and a Backup Offer

The 'as-is' language does not erase the signed inspection contingency. As-is generally means the seller will not make repairs, but the buyers still have the contractual right to inspect and, within the contingency period, to request remedies, renegotiate, or terminate. Confirm the exact contract language with your broker or attorney.

Realistic options by Friday:

• Request a price reduction or credit for some or all of the $30,000 in fixes, supported by bids. The seller can accept, counter, or refuse.
• Proceed without a remedy, accepting the risk and the cash outlay.
• Terminate within the inspection contingency if the parties cannot agree, assuming the contract gives that right.
• Ask for a short extension in writing; the seller is not obligated to grant it.

Recommendation: do not waive the contingency on the basis of a claimed backup offer. Get contractor bids and insurance quotes first. Knob-and-tube wiring can make the home uninsurable or trigger lender conditions, and a roof with active granule loss may also affect insurance. Those are financing risks, not just cosmetic issues. Ask for a meaningful remedy, but be prepared to terminate if the numbers do not work.

Start with the math. The buyers have $48,000 in cash after closing. Spending $30,000 on repairs would leave about $18,000, which may be too thin for emergencies, moving costs, and carrying costs.

Seller credit:

• Preserves the buyers' cash and can fund repairs after closing.
• Is limited by the lender. On a conventional loan at 80% LTV, seller concessions are commonly capped at 6% of the price, but credits must generally be applied to allowable closing costs, prepaids, and similar items, not the down payment. A $30,000 credit may exceed the buyers' allowable closing costs and be wasted or renegotiated.

Price reduction:

• Lowers the loan amount and payment. At 6.5% over 30 years, each $10,000 of loan reduction is roughly $63 per month.
• Improves the appraisal picture and reduces the chance of an appraisal gap.
• May be less attractive to a seller who wants to preserve headline price.

A practical structure is a price reduction to about $585,000 to $590,000, or a credit capped at the lender's allowable amount plus a modest price reduction. Ask the lender to confirm the maximum usable credit before making the request.

Treat the backup offer as a claim, not a verified fact, and do not let it force a waiver of the inspection contingency. You cannot verify another buyer's contract, and even a real backup does not eliminate your clients' contractual rights during the contingency period.

Handle it this way:

• Confirm all deadlines in writing and calendar Friday at 5 p.m. Do not rely on an oral extension.
• Submit the remedy request promptly with bids, insurance concerns, and a clear deadline for response.
• If more time is genuinely needed, request a written extension and explain why. If the seller refuses, the buyers must decide by the deadline.
• Do not waive the inspection contingency unless the buyers understand that they lose the contractual right to terminate or renegotiate based on the findings.
• Remind the buyers that 'loving the house' is not a financial analysis. The backup offer may be real, but the wiring and roof are real too.

If the seller refuses any remedy and the buyers still want the home, document the informed decision and confirm financing and insurance in writing before removing contingencies.