Roger discusses “As-is” contracts for buying and selling a home in REALTALK™ #30

Hi, welcome back to REALTALK™ with Sarasota’s luxury waterfront specialist Roger Pettingell. Hey Roger. Mary Kay, how are you today? I’m a little confused, today actually. Let me clear it up. I have noticed of late that several of our transactions have involved “as is” contracts submitted by the buyers. We like any contact, by the way. Well we do. But I was just curious. What is the real advantage? Why would a buyer opt for an “as is” contract when that means they don’t have to request repairs. So that’s why I’m a little confused. Can you help me? I will, I’ll try. So, of course I’m not an
attorney. So, if you’re watching this, seek your attorney’s advice. But as a Realtor I can tell you a couple things about the “as is” contract. We’ve started to see it more. So why would a buyer want to do an “as is” contract? Sometimes they feel like it’s the easiest contract to get out of. All you have to do is go to the part of the contract that says you have 10 or 15 days to do an inspection, and basically you can get out for any reason. So sometimes that’s why they do it, because it’s nice and clean and simple. Sometimes they do it because they think that the seller will be happy to see it. Because maybe they’re asking for a lower price but it makes a seller think that they will actually be having their house sold in the “as is” condition. In reality that’s not often true. Often, what will happen is there’ll be an inspection, the buyer will find something that’s broken, and they’ll come back and they’ll still ask for it to be fixed. And the seller will say, “Well it’s an “as is” contract.” And the buyer will say, “Well I’m not gonna buy your house unless you fix it and bring it up to the current working condition.” So then it becomes kind of a negotiable point. “As is” also sometimes a seller will say “I’m only looking for “as is” contracts.” They might put that in the realtor comments. Right, I’ve seen that before. Clearly what they’re saying is “I’m not fixing it.” Like they’re saying, straight-out, “You’re taking as it is.” And those “as is” are always conditional upon an inspection. Everybody always understands that you would have the right to do the inspection, so you know what exactly you’re getting. But the seller, in
that case in my mind anyway, is saying you know, “I’m gonna sell it under these terms. Bring in whatever offer price and we will negotiate that. But don’t look for me to fix anything.” Well, that helps a lot. Did that clear it up? It did. Thanks so much for joining us on REALTALK™ and we’ll see you next week.

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