In this day of short sales and foreclosures, you will find many more Sarasota properties listed as “As Is”. This means that any buyer is welcome to do an inspection to determine the shortcomings or faults in a home, but don’t look to the seller to pay for or fix anything you uncover. If you want the home, you have to buy it “As Is”. This is understandable and expected in short sales. If the owner can’t pay the mortgage, they probably can’t pay for repairs either. It’s also expected in foreclosures. Lenders simply don’t have the manpower or time to fix problems. Where it really raises a red flag, however, is in a non-distressed sale –Why would an owner not be willing to put the home in a better condition to sell ? It may well be because the owner knows of problems that may be significant.
If Maureen or I take a listing where the seller wants to sell “As Is” the questions really start to flow. Our first thought is they just don’t want to be bothered with any repairs. That is fine but it does not give a prospective buyer much confidence in the property. Also the seller must disclose everything on the sellers disclosure anyway. We also explain that a buyer can cancel the contract after the inspection for any reason.
A home sold “As Is” is often discounted compared to other homes in the neighborhood. And nothing prevents a buyer from making an offer and then later trying to negotiate some extra cash concessions once the inspectors report is in.
In a nutshell, “As Is” to a buyer means beware and for a seller it results in a lower sale price and a risk of a cancelled contract.
Patrick Doherty 1801 Main St. Sarasota, Fl 34236