The term AS-IS residential contract for sale and purchase in Florida means the homeowner is selling the property in its current condition and will not make any repairs or improvements, or provide any buyer credits to cover these expenses. Legally speaking, it also releases the seller from any responsibility or liability for the home’s condition. “What you see is what you get”. However, AS-IS residential contract for sale and purchase in Florida is the most popular used document in Palm Beach County Real Estate area for last decade.
In a most percentage of cases, a buyer will make an offer to purchase property AS-IS which means the buyer is accepting the property in its then current condition, inclusive of all defects. A seller will not be obligated to make any repair and the buyer accepts any problems with the property if purchased as is. However, most AS-IS purchasers utilize a contract form that gives them the right to inspect and terminate the contract within a specified period of time if they are unhappy about its condition.
Those contracts are generally known as AS-IS with right to inspect. Most of these forms grant the buyer a limited period of time within which to terminate the contract for any reason or no reason. The buyer can use that time to inspect, contemplate or simply change his or her mind. Many sellers mistakenly believe that a contract with the words “as is” in the title means exactly that and are often disappointed to find the contract really gave the buyer an option to terminate and a free look for the period stated in the contract.
Again, what it means to sell your home AS-IS?
For sellers: AS-IS sales are easily the most convenient option, because it does not require you to make any changes to your property, whatsoever. You can pack up your things, leave the key in the door and never go back. For this reason, as-is sales are ideal if you are facing a financial hardship (because you don’t have the money to pay for costly repairs or updates) or if you need to relocate quickly. Typically, as-is properties are dramatically riskier investments for buyers, meaning most buyers will offer much less money for them. Thus, if your broken A/C is causing you to list your home as-is, you should expect a notable drop in value. However, the AS-IS marker is a red flag telling buyers to stay away. An AS-IS house would require significant work, which meant delays, which lowered the buyers’ interest.
Before you decide whether to list your house AS-IS, you should do some research into your local real estate market, perhaps talking with a real estate professional with Homesellers Realty to better understand your options.
It is sometimes much better to prepare and fix the house to get the expected top dollar value for your property.
For buyer: AS-IS offer giving you opportunity to inspect the property and walk from the deal during the inspection/rejection time or accept the property without requesting repairs.
House under contract or real estate contract meaning can also be very confusing. Basically in real estate House Under Contract means that the seller accepted the offer from the buyer and the house is not available for sale at this time. However, often the backup offers can be still considered.
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If you’re a homeowner, your net worth got a big boost over the past several years due to rapidly rising home prices. You probably accumulated decent amount of equity on your house.