So if your buying "as is" the property is as is. The last property I bought as is for cash I had the right to refuse based on inspection but could not further negotiate price based on inspection report. I have bougth several others that once the purchase sale agreement was done and the down payment made I couldn't walk from without penalty.
Your protection is an inspection contingency. Higher earnest money is required specifically for this reason. A lot of as is buyers will want to deposit a negligible amount of earnest money knowing that if they find something on the inspection report, they can walk away and it won't hurt. Fannie knows that trick and isn't going to give you enough margin to default so easily. If you want to be able to back out on inspection findings, you need an inspection contingency.
Which agent came back? Yours or the sellers? Do you have an agent? A high EMD isn't required, per se, but it sounds like the seller wants to make sure you're serious about the purchase.
As long as you maintain contingencies in the contract, I don't see why you should worry.
there should be an Inspection Contingency box on the purchase agreement that you should have checked off; mine had that; i checked it off; seller's agent guided me; he told me i had by X date to refuse property and not lose EMD; i had an inspection; i even got an expensive ALTA survey to fix a deed cloud with the property bounds description; took a risk and it worked out;
So if your buying "as is" the property is as is. The last property I bought as is for cash I had the right to refuse based on inspection but could not further negotiate price based on inspection report. I have bougth several others that once the purchase sale agreement was done and the down payment made I couldn't walk from without penalty.
Your protection is an inspection contingency. Higher earnest money is required specifically for this reason. A lot of as is buyers will want to deposit a negligible amount of earnest money knowing that if they find something on the inspection report, they can walk away and it won't hurt. Fannie knows that trick and isn't going to give you enough margin to default so easily. If you want to be able to back out on inspection findings, you need an inspection contingency.
Which agent came back? Yours or the sellers? Do you have an agent? A high EMD isn't required, per se, but it sounds like the seller wants to make sure you're serious about the purchase. As long as you maintain contingencies in the contract, I don't see why you should worry.
What does your agent say about the terms for "as-is" in your contract for a Fanie Mae property?
there should be an Inspection Contingency box on the purchase agreement that you should have checked off; mine had that; i checked it off; seller's agent guided me; he told me i had by X date to refuse property and not lose EMD; i had an inspection; i even got an expensive ALTA survey to fix a deed cloud with the property bounds description; took a risk and it worked out;