As is Contract Isn"t Really
You may need a lot of convincing not to pursue an "as is" contract when selling your home.
An "as is" contract is nearly always something that should be avoided in favor of a standard contract with an inspection.
How important is it not to use this contract? As a seller, the temptation is to think the contract sounds wonderful because you don't have any expenses and you don't have to bear the cost of any inspection items.
An as-is contract is a little bit like fool's gold.
The reason that is so, is because there a clause in the contract.
It generally reads that the buyer has from ten to fourteen days to cancel the contract.
The contract generally reads that if the Buyer determines, in the Buyer's sole discretion, that the property is not acceptable to the Buyer, Buyer may cancel this contract by delivering facsimile or written notice to Seller prior to the expiration of the inspection period.
If Buyer timely cancels this contract...
the deposit shall be immediately returned to the Buyer, and the Buyer and Seller shall be released from all further obligations under this contract.
What that means is that the buyer is out.
There is no reason needed to cancel and exit the contract.
Any reason the buyer has, including a "feeling" or remorse, or the discovery of another property for sale.
If the buyer finds something on the inspection report, or anything they may observe about the home, they can insist on repairs and modifications according to their perceptions.
The buyer is in complete control and there are no repair limits such as are typical of a standard contract.
Typically, there are two 1.
5% limits on repairs in a standard contract.
If you have to put your home back on the market because a buyer walks, the likelihood is that you'll not only be re-marketing your home, but you'll be selling your home at a lower price because buyer's and buyers' agents will know your home was turned down in a prior sale and will be expecting that there is a problem that merits a lower price.
An "as is" contract is nearly always something that should be avoided in favor of a standard contract with an inspection.
How important is it not to use this contract? As a seller, the temptation is to think the contract sounds wonderful because you don't have any expenses and you don't have to bear the cost of any inspection items.
An as-is contract is a little bit like fool's gold.
The reason that is so, is because there a clause in the contract.
It generally reads that the buyer has from ten to fourteen days to cancel the contract.
The contract generally reads that if the Buyer determines, in the Buyer's sole discretion, that the property is not acceptable to the Buyer, Buyer may cancel this contract by delivering facsimile or written notice to Seller prior to the expiration of the inspection period.
If Buyer timely cancels this contract...
the deposit shall be immediately returned to the Buyer, and the Buyer and Seller shall be released from all further obligations under this contract.
What that means is that the buyer is out.
There is no reason needed to cancel and exit the contract.
Any reason the buyer has, including a "feeling" or remorse, or the discovery of another property for sale.
If the buyer finds something on the inspection report, or anything they may observe about the home, they can insist on repairs and modifications according to their perceptions.
The buyer is in complete control and there are no repair limits such as are typical of a standard contract.
Typically, there are two 1.
5% limits on repairs in a standard contract.
If you have to put your home back on the market because a buyer walks, the likelihood is that you'll not only be re-marketing your home, but you'll be selling your home at a lower price because buyer's and buyers' agents will know your home was turned down in a prior sale and will be expecting that there is a problem that merits a lower price.
Source...