Even with it being a buyer's market I see an increasing number of buyers agreeing to purchase a home in "as is" condition. The term "as is" would basically mean that the seller is making no warranties other than clear title and the seller does not intend to make any repairs.
The increase in as is offers could be a result of the increase of bank owned and short sale contingency homes that are now making up a large part of the Central Florida home inventory. Bank addendum often require buyers to sign as is clauses and sellers who are contingent upon a short sale, will need to sell as is simply because of having no money for repairs.
Buyers can still protect themselves when buying a home as is by making sure they make their contract "as is with right to inspect".
An as is with right to inspect addendum will allow the buyer a legal way to cancel the contract should an inspection reveal conditions or repairs the buyer is unwilling to accept. the buyer will need to notify the seller in writing of the conditions or repairs that the inspection report revealed that are not acceptable to the buyer and are the reason for the cancellation.
Buyers can choose to accept the property in the condition reported and move forward with the sale or in some cases the seller may decide that it is in their best interest to make the repairs for the buyer in order to successfully close the transaction.
When buying a home as is you should talk to your Realtor about making sure your interests are protected and if need be, you should seek the advice of an attorney prior to executing a contract.
Related Florida real estate views:
What are the repair obligations to the home seller when using the FAR contract?
Home inspectors recommend caution when buying foreclosed homes
Don’t buy a home without a home inspection
- Greg Staker - Watson Realty Corp. - 407-304-0255
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