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John & Debra Bellmaine

CRS, GRI, ABR, PSA, RSPS, SRS, REALTORS®

Want To Ensure Your Buyer Won’t Cancel Your As-Is Contract?

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Duh…don’t use the As-Is Contract! When you list your house, tell your agent you only want to receive offers made on the Standard (non-As-Is) Contract!

In Florida, there are two contract forms in use for the sale of residential property. The Standard (non-As-Is) Contract has always provided for buyer and seller to agree to repair limits.

The As-Is Contract, while it doesn’t require the seller to do repairs, DOES allow the buyer to cancel the purchase contract for any reason during the inspection period and get a refund of any earnest money deposit made.

And here’s the real point. In the white-hot seller’s market we’ve been in, buyers have been using this “get-out-of-the-contract-free” feature of the As-Is Contract by making simultaneous offers on multiple homes then cancelling any accepted contracts on properties that were not their first choice. Or, an even more likely scenario, the buyer has his offer accepted but keeps looking at other properties during the inspection period and sees one he likes better than the one he has under contract. Again, same result, buyer cancels the contract for the less preferred property.

If you’re the seller, you’re extremely upset. You had multiple offers, accepted one, then a week later that darn buyer cancels and leaves you high and dry. Your other bidders have wandered off to make offers on other homes. You have to start over.

If you want to avoid this scenario and the possibility of accepting an offer from a buyer who is “throwing stuff at the wall to see what sticks,” tell your agent you only want offers submitted on the Standard Contract.  This way, the buyer can only cancel the deal if the cost to repair issues exceeds the contract repair limit.

You might have to fix a few non-cosmetics issues, but only up to the dollar limit you and your buyer agreed to. Just factor that repair limit into your list price. Isn’t it worth it to pay what could be as little as $500 or $1,000 to keep your deal on track?

You better believe only very earnest buyers will be making those offers.

If you are getting ready to sell, please contact a highly experienced and trained Realtor to assist you. If you’re in the greater Tampa Bay area, we’d like to be your Realtors. Call us at 727.286.1249.

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