Teaching real estate and contracts is one of the most enjoyable things in my career. Not only do I get to help my fellow agents but I get to stand up in front of everyone and get all the attention. (Insert Laugh Here). Real estate laws differ from state to state and here in Florida we have what is call an "As-Is" contract that we use on transactions involving homes that are being sold "As-Is". I want to start by explaining what an "As-Is" home sale is all about. As-Is sales are the most popular in Florida. Mainly because the As-Is real estate contract is widely considered the most fair and balanced contract for both buyer and seller. Homes that are for sale "as-is" are homes where the seller is not interested in making cosmetic changes or negotiating for new appliances in order to sell. In other words, the home is what it is, it has what it has and you get what you see.
You have every right to a home inspection and wood destroying organism inspection as well as A/C inspection, pool inspection. Heck you can have the home inspected for whatever you want during the time frame expressed in your contract referred to as your "inspection period" most often, you will ask for 10-15 days in order to complete all of your inspections. In order for you to cancel your contract and have your escrow or "good faith" deposit returned, you have to notify the seller (or their agent) in writing (an email) during your inspection period that you wish to cancel the contract and move on. I write that email for you. Should you ask for a 10 day inspection period you cannot email me on the 11th day and expect a refund of your escrow. The contract is clear and all timelines must be adhered to. The contract is legal and binding.
Here is what makes the Florida As-Is contract so beneficial to home buyers. You do Not have to hire a licensed home inspector. The contract states that during your inspection period the contract may be canceled "at the buyers discretion". You can have a spouse, partner, friend or relative that is knowledgable about homes give your their opinion and use that if you want. Keep in mind that in order to obtain homeowners insurance you will need at least a 4 point inspection by a licensed home inspector to satisfy your insurance company. My professional advice as your realtor is to have a full inspection regardless. The inspector is going to the home anyway so why not go all out with a full home inspection. My job as your Realtor is to protect you and advise you as to what is in your best interest. The price may vary a bit for the full as opposed to the four point but better safe than sorry I always say. The four point inspection is the A/C, Electrical, Plumbing and Roof. A full home inspection will check that the appliances are operating, door jams are not seeing dry rot, lights and fans operate etc... it is a room by room inspection. a WDO or Wood Destroying Organism inspection is required by VA and FHA financing and as your super awesome real estate agent, I pay that inspection for you.
Sometimes you will see a home that needs some updating like paint and flooring. When a home is sold as-is, the appearance and updating is taken into consideration in the asking price. If the seller doesn't want to spend money on updates to sell, the home should be price accordingly. I will give you a market analysis before you make an offer if we all think the price is too high. I then use that report as a tool to negotiate your offer and sales price.
What if your home inspection shows an issue?
You can ask for a price reduction or ask the seller to fix the issue. Lets say the home has a stab-lock breaker panel which can hinder your ability to obtain insurance. You can ask for the seller to replace it. Just be aware that this all has to be dealt with during your inspection period. When I show a home I always open the panel. If its a Zinsco, Sylvania Stab Lock I will tell my client and we will add the repair to the contract and offer from the start. Other items like a leaky roof or leaky hot water heater will affect your financing and insurance and its normal to ask the seller to make those repairs. As-Is does not mean "poor condition".
Im always happy to answer any questions you may have about Florida real estate. I've been serving the community in Pasco county Florida for over 10 years and I am always here for you.
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