Sarasota homes for sale marketed in “AS-IS” condition unnecessarily scare the pants off most prospective buyers!

Pre-foreclosure (aka “short sale”)?

Bank-owned (aka “REO”)?

Seller Request (aka “nothing wrong-seller refuses to pay one penny)?

Right or wrong, good or bad, selling a house in AS-IS condition with right to inspect scares (many) buyers.

However, reality is Sarasota foreclosures and short sales list and sell with AS-IS terms. That’s the nature of today’s Sarasota real estate market. If you are unfamiliar with today’s local housing market, please ask your real estate agent to explain what AS-IS is and isn’t before you cross properties off your list.

On the other hand, if you are selling and not selling distressed, please consider not listing in AS-IS condition. Before you get upset or angry, understand the proactive position you can take to reassure prospective buyers and buyers’ agents your house is okay.

AS-IS HOME LISTINGS CAN BE A MAJOR TURN-OFF.

Keep in mind, today’s buyers want model-home condition & McDonalds’ pricing. Today, two types of properties are listed for sale: short sales/REOs and “regular” properties not distressed.

Distressed Property 101

Short sales and REOs always sell in “as-is” condition. However, closely related to homes that don’t show well are properties not listed as short sales but still listed for sale in “as is” condition.

The term “as is” means the seller will not pay for any repairs should a buyer’s inspector detect issues on the home inspection respect. AS-IS selling does NOT suggest anything wrong with the property. It simply informs prospective buyers that seller will not go out-of-pocket.

Would a Sarasota home for sale listed in “AS-IS” condition turn you off?

If the property is selling short sale, forget hoping for a Seller’s Property Disclosure. If not a distressed sale (or in rare instances), the seller will disclose in writing to buyers all known defects (past and present), such as a leaky roof, a cracked foundation or even potential litigation against the HOA that materially could effect the property’s value.

If known issues or potential issues exist or have existed, seller must disclose to prospective buyers.

Selling a property in ‘as-is’ condition should not immediately eliminate a property from consideration. However, myriad choices allow buyers to adopt “next” mentality.

“I don’t like ‘as-is.’ What’s next,” the savvy buyer asks today!

Better to be safe than sorry….

In reality, an interested buyer of an ‘as-is’ property simply needs to make the sale contingent upon satisfactory professional inspection. If the buyer doesn’t approve the written inspection report, the buyer should cancel the offer and get his/her/their good faith deposit refunded.

Better yet, talk with your real estate attorney about making your earnest money deposit contingent upon property owner and/or debt owner approval. That way, you don’t risk tying up your earnest money deposit (whether $5.00 or $1,000). You only deposit with escrow agent, usually title company, attorney or broker once the offer is accepted.

Of course, if your property needs any repairs that you can’t afford or don’t want to make, you have no choice but to list in “as is” condition, perhaps at a reduced price. However, I might have a CHEAP suggestion for you to allay any buyer concerns about your ‘as-is’ Sarasota homes for sale.

Suggestion: Hire and pay for a professional inspection BEFORE listing your property for sale in AS-IS condition. Choose a highly-recommended inspector. Talk with the real estate licensee who will list your property if you want a referral to a highly qualified inspector.

Have the report available for any prospective buyers.

In many cases, a recent inspection report has calmed down some apprehensive prospective buyers. By the way, I still believe a prospective buyer should hire his/her/their own home inspector or systems experts for the education regarding the house, not just the report.

Indeed, selling AS-IS raises flags, whether justified or not. As a seller, you can pre-empt buyer apprehension with a thorough inspection. Buyers, on the other hand, require education and strategy. Clearly understand what AS-IS is and isn’t. Hire a well-regarded home inspector and/or systems experts. Every realtor’s responsibility is not to assume buyers and sellers understand today’s market.

Sarasota homes for sale (including LOTS of pre-foreclosures and REOs) demand careful consideration. If you or someone you know wants to buy or sell a house in or around Sarasota, Florida, please call me now. On my website I have many videos helping you get to know Sarasota and Sarasota real estate.

Author Bio: Sarasota Realtor Mike helps homeowners avoid foreclosure. Mike and his team also help buyers and sellers avoid costly mistakes as property values drop and 30-50% off 2006 “bubble” prices are not the bargains they appear to be. Contact me now at 941-914-9980 or Sarasota Real Estate | Sarasota Foreclosures

Category: Real Estate
Keywords: real estate,foreclosures,short sales,sarasota foreclosures,sarasota real estate,sarasota homes