Buying Sarasota As-Is Properties

In a market with ample inventory, there are many homes on the market being sold "as-is". Buyers often are averse to viewing or purchasing an "as-is" property, fearing something drastically wrong with the house that the Seller is trying to conceal. However,"as-is" homes are often great purchases with very minor work needed.

Traditionally, a home seller might be responsible for a certain percentage of the repairs needed to the home as determined by a licensed inspector. Sellers are more and more selling the home "as-is" to avert the possibility of unexpectedly paying for repairs out of pocket - but often will ask a lower price in return. In this market, we also see a seller afraid of a Buyer nickle-and-diming, when they already have so little money coming to them after closing.

Common misconceptions include the fear that the "as-is" home is a handyman special, in need of massive repair. This is rarely true, and generally handyman properties are identified right up front.

Buyers are protected in several ways. Sellers provide a signed Sellers Property Disclosure to prospective Buyers. The Seller is required to disclose any known material problem - roof issues, plumbing leaks, proposed land use changes, or a broken security system, for instance. In areas ranging from interior to exterior, heating/cooling, age of appliances, and homeowner association rules, Sellers relate their knowledge to prospects so that they might make an informed buying decision.

Buyers should always insist on a home inspection. No exceptions. I am sometimes surprised at those folks willing to forgo the process, but not with this agent!

As a Buyer's Agent, I recommend writing a contract "As-Is with Right To Inspect". Buyers can essentially get a "free look" at the property, and if a licensed inspector determines that the repairs needed exceed their pain threshhold, the Buyer has the right to cancel the contract and get his deposit back. This process allows the Seller to refrain from being responsible for any repairs, but also affords the Buyer protection that they are not locked into a contract if a serious issue is found.

It is important to note that a Seller is never responsible for aesthetic improvements - a new paint job, for instance. Conversely, a Buyer cannot use expected aesthetic costs as a basis for "needed repairs". But the Buyer will be protected from major issues with the home not readily noticeable to the untrained eye.

For more information on working with a Buyer's Agent who can walk you through an "as-is" purchase, feel free to email me.