Reasons Why a Florida Home Might Be Sold As-is
In your home search, you may come across listings described as "sold as-is." What does this mean? And why do sellers choose to go this route? Here's a quick look at the use of the term, reasons why a Florida home might be sold as-is, and what home buyers should know.
What Does Sold As-Is Mean
What does "sold as-is" truly mean? Essentially, it means that the seller will not make any repairs to the home before it is sold. Sellers are still required to disclose any known defects; as-is does not eliminate their disclosure obligation. However, buyers should perform their own due diligence by completing a thorough inspection before deciding to move forward with the purchase since they will be purchasing the home in its existing condition.
Reasons Why a Florida Hole Might Be Sold As-Is
There are many different reasons why sellers choose to sell as-is:
1. They have little knowledge about the property.
In cases where sellers never lived at a home, received the home through inheritance, or lives out -of-state, they may have little knowledge of the property's history or condition. Rather than selling with the uncertainty of any potential repairs, they often prefer to sell as-is.
2. It's a seller's market.
In hot real estate markets, there are far more buyers than there are listings available. Sellers may use this to their advantage. By selling as-is, they are simplifying the selling process for themselves while also filtering out certain types of buyers. Selling as-is often discourage buyers who may nit-pick about property condition, leaving savvy buyers who are willing and able to manage their own repairs.
3. The seller does not have the financial or other means to complete any work.
The seller's personal circumstances may be another of the major reasons why a Florida home might be sold as-is. If a seller is unable to complete repairs before closing, selling as-is eliminates that negotiation with potential buyers. It could be that a seller doesn't have the financial resources to complete repairs. They might also have other circumstances such as an illness or disability, that makes it difficult for them to do so.
What Home Buyers Should Know About Properties Sold As-Is
Some buyers assume that properties sold as-is have major problems and are in need of extensive repairs. This is not necessarily the case. As mentioned above, there could be several other reasons for selling as-is. Don't let the term scare you aware from a potential property.
Additionally, it's important to note that you can still include an inspection contingency when making an offer on sold as-is properties. The inspection will be your opportunity to learn about any issues and to decide whether you wish to move forward with the purchase. In some cases, you might be able to negotiate a financial concession from a seller for major repairs that were unknown (by even the seller),... but do not attempt to negotiate work to be completed before closing.
When dealing with unusual situations, like reasons why a Florida home might be sold as-is, it's helpful to work with an experienced real estate agent. Your agent can help you through the process and suggest creative solutions to problems that may arise. If you are not already working with an agent, give our team a call!