Is the Florida "As Is" Real Estate Contract a Misnomer?
Hi, I’m Daisy. If you’re selling a home in Florida, you’ve probably heard the term “AS IS contract.” And if you’re like many sellers, you may assume it means one thing: That the buyer takes the home exactly as it sits. No repairs. Take it or leave it! In theory, that sounds right. In practice, that’s not how it plays out. In my opinion, “AS IS” is a bit of a misnomer. Watch this 2 min 3 sec video or read on:
An AS IS contract simply means the seller is not agreeing IN ADVANCE to make repairs. There’s no upfront promise to fix anything. That’s it.
It does not remove a buyer’s right to an inspection.
It does not force the buyer to accept defects.
It does not eliminate negotiations.
As long as the buyer has an inspection period, they still get to evaluate the home and decide whether they want to move forward. Actually, they have two options:
They can back out OR ask for repairs.
That’s where the misunderstanding usually happens.
Sellers hear “AS IS” and think the buyer has no leverage. But an inspection CONTINGENCY can creates leverage. Not because the buyer can DEMAND repairs, but because they can decide not to proceed. They don’t have to ask for a credit. They don’t have to negotiate. They can just walk WITH their earnest money deposit. So in practice, AS IS doesn’t mean “take it or leave it.” It means “let’s see what inspections reveal, then decide.” That’s why I call it a misnomer. As long as there is an inspection contingency, as is doesn’t mean “take it or leave it” as one normally understands the term.
Now let’s talk about market conditions, because this matters a lot.
In a strong seller’s market, you may see buyers waive inspections or limit contingencies. That environment does exist, but it’s not the default. In a balanced market or a buyer-leaning market, inspections are the NORM. Most buyers aren’t going to purchase one of the largest assets of their life without the right to inspect it and back out if the home has issues not readily apparent to an untrained eye. Which means most AS IS contracts still lead to post-inspection negotiations. At that point, sellers usually face a choice:
Do you hold firm and risk the buyer walking?
Or do you address the issue in a way that keeps the deal together?
That’s where the old saying applies perfectly: A bird in the hand is worth two in the bush.
Because when a buyer walks after inspections, you don’t just lose that buyer. You lose time. You create doubt in the open market because others see that you lost a buyer. And in some cases, you now have new disclosures to make to the next buyer. Even if you didn’t disclose it – and I don’t recommend that! – the next buyer is very likely to discover the same issues. This is why many sellers choose to negotiate even under an AS IS contract.
And negotiation doesn’t always mean repairs. In fact, credits are often cleaner.
They avoid contractor delays.
They avoid re-inspection issues.
They keep the timeline intact.
The buyer can choose who and when the work gets done. The goal isn’t to win an argument about what AS IS means. The goal is to sell the home. Once inspections happen, buyers decide whether the home works for them. And sellers decide how flexible they want to be to keep the deal alive.
If you want to learn more about how the 4-point inspection affects negotiations under AS IS contracts, I’ve linked a video here.
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This video is for general informational purposes only and is not legal, insurance, or financial advice. Real estate transactions vary.
For advice specific to your situation, consult a licensed attorney, insurance professional, or financial advisor.
