What Does an "As-Is" Real Estate Sale in Florida Mean?

Whether you are selling a home in Trinity or New Port Richey Florida or you are buying a home in the New Port Richey Florida area, the term "As-Is" is used quite often in regard to the terms of the sale and the contract used in the purchase of the home.  In Florida we have a purchase and sales contract that is an "As-Is" contract and it is the most commonly used contract in our area.  The main reason being that Florida is a Transaction Broker state. That means that the real estate Broker for the seller and the Broker for the buyer have non fiduciary responsibility to the customer. In essence, we are both working to protect all parties to the contract and facilitate the sale of the property. Transaction Brokers are not held to full disclosure as a single agent would be and we work together to satisfy the needs of the customers (seller & buyer).  The As-Is contract is the most even and fair transaction contract to both the buyer and the seller and it the contract most preferred by the customers.

Contained in the contract is a right to inspections clause. This states that the buyer has the right to have the home inspected by a licensed home inspector, pool professional, roofer, plumber etc... during a specific time frame and decide whether or not the home has any major defects and the buyer may cancel the contract and receive their escrow deposit or "good faith deposit" provided they notify the seller in time.  The buyer may also at their discretion  cancel the contract based on the condition of the home based on inspection and they are not required to use a licensed inspector to do so but, they do have to adhere to the time frame in the contract. The buyer can also ask that some items be repaired prior to closing and if they buyers financing requires the repair, it would behoove the seller to make the repairs. FHA financed buyers can include the FHA addendum with repair amounts to an As-Is contract for purchase.  This is why the listing real estate Broker will evaluate the home as to whether or not it will pass an FHA inspection. If not, the home is not offered with an FHA financing option. 

As-Is does not always mean, take it or leave it. In some cases of a foreclosed home or and inherited property that may be the scenario and if you are selling a home and not willing to do repairs, you should price it accordingly and offer it to only cash buyers. You are still legally required to disclose any material defects, not readily visible to the buyer that may affect the value of the property on an "As-Is" sale.  

Generally, when a home is for sale "As-Is" it is understood that the seller is not going to make cosmetic improvements to the home in order to satisfy the buyers personal taste. The seller will usually not want to paint rooms or replace carpeting, sod, new a/c etc... but keep in mind that "As-Is" does not mean that the home has a defect and more often than not, the seller will make reasonable repairs in order to satisfy the buyers financing requirements.

I am always here to answer any questions you may have reading selling or buying a home in the New Port Richey Florida area. Contact me anytime to discuss your real estate needs.