Selling a house can be stressful, especially when you have to prepare the house for sale. Technically, all houses are sold as is because sellers are not legally obligated to repair their property for potential buyers. However, selling a house as is generally means selling the house in its current condition without making repairs or improvements before the sale. Still, selling a house as is in Florida may be one of the most straightforward options for sellers because homeowners still have a lot of value in their homes.
What does as is mean in Florida real estate?
Selling homes in Florida has its fair share of complexity, but what does as is mean in Florida real estate? In an as-is sale transaction, the owner sells a house in its current condition without making any repairs or renovations. The seller makes mandated disclosures about the property breaking down the property’s condition for the potential buyer. This includes:
- Environmental hazards
- Pest damage or infestation
- Damage or potential damage from sinkholes
- Any known problems with essential components such as HVAC, plumbing, electrics, or structural integrity.
- Homeowner association rules
- Boundary disputes
- Potential or actual claims, complaints, or legal proceedings
Selling a house as is in Florida requires a specific as-is form that eliminates the need to fill out a section detailing repair payment agreements. The ’as is’ form makes the sale different from conventional sales, where there are usually negotiations for repairs.
A FAR/BAR As Is a Residential Contract for Sale and Purchase is used for as-is sales approved by the Florida Association of Realtors (FAR) and the Florida Bar Association (BAR). The buyer and the seller sign the As-Is Residential Contract, protecting the seller from costly repair expenses. However, selling a house as is in Florida may lower the property’s value.
As Is Residential Contracts ensure that:
- The buyer is subject to a satisfactory home inspection
- If the buyer’s lender requires repairs to execute a mortgage, the buyer should pay for the repairs themselves.
- The seller has no involvement with the repairs unless otherwise agreed.
As Is Residential Contracts give the buyer 15 days to complete an independent home inspection. Should the home inspection uncover any undisclosed defects, the buyer can negotiate with the seller to lower the sale price or credit the buyer for repairs at closing.
The seller has a right to refuse the request to cover expenses for repairs, and the buyer can withdraw from the deal within 15 days without losing their deposit.
Can I sell a house in Florida as is?
Selling a property in Florida is easy, especially when the right professionals are guiding you. Homeowners sell their houses for different reasons. In Florida, you can sell a House as is using an as-is Residential Contract for Sale and Purchase. This is a valid option for fixer-upper homes and turnkey homes.
Reasons to sell your house as is
Selling a house as is does not always mean that the house is entirely run down. Some people opt for the as-is sale option because it is stress-free and may facilitate an easy property transfer.
When looking for where to buy a house in Florida, it is vital to keep your options open and consider looking for properties listed for sale as is. These are some of the reasons why sellers sell their homes as-is:
- Tight financial situation
Buying a house is a significant investment that gives you financial security should anything arise. Some homeowners sell their homes when they are in desperate need of cash. When the financial needs are urgent, selling a house as is enables the seller to close the sale quickly.
Buying or selling a house through the conventional route could take months before closing. Selling as-is makes the process faster and more convenient for someone in a tight financial situation.
- The seller cannot afford to maintain the property
Owning a home comes with financial responsibility beyond the sale price. Unfortunately, some owners may purchase property that is too expensive to maintain. If the seller cannot afford to maintain the property, selling a home as is enables them to downsize and move into a more manageable house.
- The seller does not want to invest in repairs
In some cases, a homeowner may sell their property because they do not have the time or the money to make repairs or renovations. There are many compelling reasons why a seller can opt to sell without renovating to boost the sale price, such as relocation or lack of time and finances for a contractor to finish working on the project.
Ultimately, the seller is required to disclose any defects with the property and let the buyer decide if the property is a worthy investment.
- Divorce or inheritance
Most homes hold significant sentimental value to their occupants. Losing a loved one to death or divorce can be too much to bear in a house where they are no longer present.
Often, property left in someone else’s care through divorce or inheritance might cause more tussles and headaches among loved ones. As such, most people in such circumstances opt to sell their homes as is, in order to get better footing as they move on from demise.
Read our 5 tips for selling an inherited house in Florida…
What are the positives of selling a house as is?
No need to deal with repairs: repairs require a seller to invest a lot of time, money, and thought into a project that someone else will eventually own. Selling a house as is helps the seller avoid the expenses and headaches that come with repairs and shifts the responsibility of repairs to the buyer.
Home inspections are easier: in a home buying process in Florida, buyers pay for a home inspection hoping to uncover defects that may reduce the property’s sale price. While a home inspection is necessary, as-is sales allow sellers to inform buyers that they are not willing to negotiate for the cost of repairs. This ensures a seller gets offers from buyers willing to match the listed price.
Faster closing: unlike conventional sales that may take months to get to closing, as is sales take a significantly shorter while because the seller saves time by avoiding repairs, staging, and sale prep. Making the time to closing shorter is convenient for some sellers, which makes selling a house as is the best option for them in Florida.
They add housing supply to a tight market: while real estate markets are ever-changing, as is sales are a great addition to the supply of housing in any real estate market. People often look for where to buy a house in Florida, and there are many as-is listings on platforms connecting buyers to sellers. This makes it easier and more affordable for a first-time homeowner to acquire their first property at an affordable rate.
What are the negatives of selling a house as is?
As-is listings may turn potential buyers away: unlike houses listed for sale traditionally, as-is listings are often considered to be properties that are run down and damaged. Most buyers will stay away from these properties, especially if they are buying a house for the first time.
However, there are still interested buyers who will prefer to spend less on a future project that may be profitable. Property may sell for less than the Fair Market Value: as is sales are often closed with a cash buyer. Cash buyers often offer a price that is less than the Fair Market Value due to the anticipated expenses for repairing the property.
Buyers may face challenges in acquiring a mortgage: lenders may avoid financing properties with structural or safety issues. Getting a lender for as-is properties can be challenging, so most buyers who hope to get a mortgage stay away from as-is listings.
5 tips for selling homes in Florida as is
- Present the house on multiple platforms: marketing an as-is house on appropriate channels helps to draw in many potential buyers, allowing a seller to get the best offer on their property. As-is houses are not always attractive to buyers, so it is important to market them on numerous platforms in order to reach as many potential buyers as possible.
- Get a competent real estate agent: while it may seem easy to simply put your home on Multiple Listing Service (MLS) listing and wait for buyers to come to you, listing a property in Florida is not always free or easy. Getting a Florida Realtor will make the process easier. In addition, a professional who understands the intricacies of selling a house as is in Florida is a great asset to have.
- Hire a property inspector before listing: as is sellers in Florida are legally required to disclose any defects with their property to potential buyers. Failure to disclose these defects may cause many legal issues for a seller. Hiring a property inspector ensures a property is thoroughly inspected to identify any defects. Home inspections also make the sale process easier because willing buyers will rarely find reasons to pull out of the deal during the 15 days period.
- Consider a home-buying company: home buying companies buy properties at fair prices, offering cash and closing within a few days. For a seller who needs to get the most out of an as-is sale, selling to a home-buying company like Level One Investments might be the best option.
- You can still increase the market value of your house: as is sales are not reserved for properties that are run down and in despair. Sellers can still renovate their houses if they want to increase the property’s market value. Selling a house as-is a valid option for all types of sellers, so if you want to make your property more attractive to buyers, you can still make changes to your property if you have the time and resources.
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Cost of selling a house in Florida
Selling a house in Florida comes with some expenses. On average, a seller in Florida spends about 11.57% on all the expenses related to selling a house. These expenses include real estate agent commission fees, HOA charges, survey fees, appraisal fees, credit reports, loan origination fees, home inspection fees, recording fees, and property taxes.
Although the buyer and seller contribute a significant portion to the closing costs, the exact amount may vary based on the type of property sold, the professionals involved, and the county where the property is located.
Selling a house in Florida: Taxes
When selling a house as is, most sellers are concerned about the taxes they must pay to complete the sale transaction successfully. Different types of taxes are involved in the sale of a property in Florida. These are:
Property taxes in Florida are some of the highest in the country, but there are some exemptions to make it easier for some individuals in the sunshine state. Local governments in Florida receive property taxes.
As a seller, they are paying property taxes due to the state up until the day of closing is important. Sellers in Florida count property taxes as a closing cost because they credit the buyer the amount they must pay when the seller is still the property owner. For instance, if the closing day is November 10th, the seller will credit the amount they were meant to pay until that date.
There are no capital gains taxes in Florida, but home sellers must pay a federal tax if they sell a house in the state. The tax rate is determined by how long the seller owned the property, the seller’s income level, your filing status, and whether the house was a primary residence or an investment property.
Your real estate agent can help you calculate your taxes before and after the sale. If you do not have a real estate agent, you can use a Florida Property Tax Calculator.
Selling a house in Florida without a realtor
Selling a house can be pretty complex if you are inexperienced because it’s not just about finding a buyer; a seller has to list the house, stage it, and ensure that all legal guidelines for sale are followed to avoid legal implications. While it may be challenging, selling a house in Florida without a realtor is possible.
Selling a house in Florida without a realtor can help the seller save on the real estate agent commission, usually up to 2.70% of the home’s sale price. While saving is important, For Sale By Owner (FSBO) transactions also mean that the seller is responsible for pricing the house, writing a purchase agreement, marketing, scheduling showings, negotiating offers, and handling all the necessary paperwork required for closing.
Handling these responsibilities may seem like a lot. Still, if you are confident in handling these obligations, you can sell your house in Florida without a realtor.
The FSBO option is not for everyone. Often FSBO sellers make 35% less compared to realtors. This may be attributed to the knowledge and experience that realtors have. For some, it may be best to hire the services of a realtor to maximize the chances of banking more profits.
Selling property in Florida to a cash buyer
Selling your house to a cash buyer may be the fastest and most straightforward way to close a sale. Selling property to a cash buyer has numerous benefits. These are:
It helps the seller save money in closing costs: When selling or buying a house, time is a crucial factor that could save money for all parties involved. Some fees, like attorney fees, are charged based on time spent on the job.
There are also costs like real estate agent commission, which is unnecessary when you sell to a cash buyer like Level One Investments. In addition, the closing can be done within 7 to 10 days, ensuring that the seller gets cash fast.
More convenient: the hassle of staging, organizing open houses, and waiting for multiple buyers to view the house may be highly overwhelming. Selling to a cash buyer like Level One Investments eliminates the need for staging and prepping, making it more convenient for the seller.
No need for repairs or improvements: cash buyers like Level One Investments are not deterred by any damage to the property. Most buyers and lenders will request the seller to update the plumbing or paint some rooms, but Level One Investments buys houses in their current condition at fair prices.
Sales rarely fall through: selling to a buyer who is relying on a mortgage can be disappointing. Deals often fall through for various reasons, such as demands for repairs or failure of loan approval. With Level One Investments, sellers can confidently look forward to the close of the sale because once the offer is made, the transaction is quick and reliable.
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Table of Contents
FAQ
Most frequent questions and answers
How much do you lose selling a house as is?
There is no formula to calculate the exact amount lost by selling a house as is. However, simple repairs yield a big return on investment in real estate. For most sellers who opt to sell a house as is, the real savings can come in time spent finding a suitable buyer and closing on the sale.
Are there any required disclosures when ling a house “as is” in Florida?
In Florida, a seller must disclose to the buyer anything that may make the property less desirable or reduce its value. A seller is required to disclose latent defects, i.e., defects that cannot be seen during a normal inspection.
Should I sell my house “as is” or fix it up?
Whether or not you should sell a house as is or fix it up is entirely determined by the profit you hope to earn, and the time you have available to dedicate to the sale process. If you have the time and resources to fix up your property, you can still fix it up and sell it as is eventually. If you need cash urgently, selling a house as is may be the best option for you.
How do you sell your house fast “as is?”
The fastest way to sell a house “as is” is by selling to a home buying company like SWF Ventures. SWF Ventures buys homes in their current condition. It is the best option if you want to sell your house as is quickly and efficiently.
