If you have bought or listed a home, you have likely come across the term as-is. As a seller, it may appear to be a helpful condition to use, but it is important to learn how a buyer might feel about it. Here is what you should know about selling your property in Florida as-is.
Meaning of As-Is
As-is represents that a property will be sold in its present state. This covers any issues that may be present, whether those problems are obvious or not. Buyers may order an inspection to accurately assess its condition before completing the purchase. Based on previous lawsuits relating to as-is conditions, the specific interpretation can actually vary by state.
Disclosure of Property History
In all real estate transfers, home sellers still have a duty to divulge any known issues. The use of as-is does not enable home owners to lie about problems. Sellers must remember this.
How Home Buyers Might React
Encountering an as-is condition in a listing is normally intimidating for first time home buyers. Most infer that it must have major issues. For those that are willing to take a sale as-is, they will typically offer a lower amount as a trade off. Buyers may consult with an attorney if they have questions about their rights in connection with the use of as-is terminology.
Seller Benefits of As-Is Clauses
Sellers commonly want to use the condition as-is to basically say that they are unable to address any work on a property prior to closing. However, from a legal context, it means much more. The term is favorable to a seller given that it offers an extra layer of protection against future lawsuits from that buyer. For buyers, it is usually a red flag and they must proceed carefully.
Is Selling Your Property In Florida As-is a Good Idea?
This is not always an easy question. Ask your Realtor about selling your property in Florida as-is and whether it is a good idea. He/she may also offer some advice on the affect it may have on prospective offers. If you do not already have one, call Sonny Solomon at The Keyes Company at 561-247-1047.