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Monday, January 04, 2016

Why Would Seller Make Repairs on "As Is" Sale?

A lot has been written about preparing a home for sale.   Many sellers approach the home selling process with an attitude of "My house is fine like it is."  

Regardless, if a house is fine (or not), most sellers want to sell their home "as is."

In the current Brevard County, Florida real estate market there is a lot of competition among buyers for move in ready homes.

So many offers are submitted "as is."

Still, even if the offer is submitted as an "as is" offer, there will likely be an inspection contingency.   Property inspections are always recommended. 

An "as is" offer is no different.

So while there will likely be a property inspection the seller should not be distressed.  The property inspection may identify problems or give a clean bill of health.  Read more about Home Inspections - What to Expect.

An "as is " offer does not obligate a seller to do anything regarding repairs.

What does a buyer do with the inspection report?   Their usual response can include any of these 
  • request repairs be made, 
  • reduction in the contract price,
  • a combination of the first two, or
  • just cancel the contract.  The contract should always have an inspection contingency - even "as is" offers. 
Even with an "as is" contract the buyer can seek repairs or other concessions.  What is the old saying?  It doesn't hurt to ask!  Sometimes "as is" does not really mean "as is."

The seller's response can be no to repairs, reductions or any combination of the above.

Still, sometimes it is in the interest of the seller to make repairs.  

Such could be the case where a buyer is obtaining a mortgage and loan approval will require issues be addressed.  For example, FHA guidelines require appraisers to make note of property defects that could pose habitability concerns or health, safety or security risks if they notice them.

And, if a seller is happy with the negotiated price,  then dealing with repairs may be the best route to closing.  What is the saying about a bird in the hand?

Finally, a word of advice for anyone considering selling your Melbourne, Florida home:

Buyers do not like surprises.  

As a seller, have an inspection done prior to your listing.   If there are issues, fix them or address them in your seller's disclosure.  An attitude of openness will make buyer prospects feel better about your property.

Call or text me at 321-693-3850 or send me an email if I can do anything to assist you with the sale or purchase of a Melbourne, Florida home.

agent@moving2brevard.com

 Image courtesy of Tina Phillips at FreeDigitalPhotos.net

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