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House sold in "As Is" buyer wants out of contract.

Interesting topic to discuss. Our buyer wants out of a home that has cosmetic issues. It seems the inspection report stated that there were small cracks on the kitchen tile floors. The roof is in great shape, the condition of the home is probably a 9.. It`s on a lake and the view is magnificent!

With that mentioned, the buyer seems agitated, and now wants to not purchase the home. It`s apparent there`s more to the story, I believe the buyer didn`t realize that the Taxes and Closing costs would be higher than they originally believed, or maybe the mortgage payments were way too high! The buyer and I have been working with each for two months. I`m in the process of sending over to the other agent a "Release and cancellation" based solely on the inspection report. This is the first time I`m faced with telling the buyer that cosmetic issues are not part of the "As Is". How would you handle the situation?

Posted by Scott Daniels Florida Real Estate 2.0. Agents Earn 100% Commission. on 11/20/2006 04:51 PM

Comments (7)

pembroke pines real estate, wwwflatfeelistinginfloridacom

7 Comments on House sold in "As Is" buyer wants out of contract.

NOV

2006

Hey Scott, Bummer. Depending on what "As Is" contract you used the buyer may not need a reason at all to get out of the contract. It may be his "sole discretion", that's the downside of an "As Is" contract. The contract should clearly state the difference between cosmetic and structural/mechanical. But what can you do? If he wants out he has an out. Definitely sounds like he has cold feet. Give him the facts and have him sleep on it before he makes a decision. Good luck.

Angela is right- sometimes they just cant communicate their real issues...family pressures, coming up with closing monies, credit hurdle, maybe a different home or simply buyers remorse.

I would sit and talk this thru as often the excuse is not the issue.

Good luck, keep us posted.

The home inspectin contingency is the Buyer's attorney's get out now free clause. You need to talk to that attorney. If his client has said "Get me out of here." Don't spend the commision check.

Scott,

All of the above. There is not much you can do other than talk to the buyer and see if there is some way to resolve it. We can't force a buyer to buy a home.

Not sure about your contract in Florida but in Texas there can quite a few ways for a buyer to get out of a contract. Delivery of Seller Disclosure, availability of financing, and option period to name three.

As for keeping the deal together .. I agree with all above. Have a good sit down with your buyer. Maybe set it up as a discussion of looking at other homes and then explore what went wrong so you know what to avoid for the future.

Then just use one of the Objection Handeling tools you have learned on them.

Good Luck.

NOV

2006

That's why I hate "as is" contracts, because it's a Free Ticket Out of the Contract. When you use a typical Florida contract, it specifies cosmetic vs serious items. When a buyer is preapproved up front, the lender should give them real closing costs - we usually provide costs for them to share with the lender such as actual insurance costs and the "new" property taxes - we remind them to be sure the lender is including endorsements to the title insurance, etc. so that there are no surprises. Before the inspection, we go over cosmetic items, and explain that the inspector will be telling them EVERYTHING about the house, and that it does not mean that the Seller will be expected to handle everything in the inspection report. We need to apply the contract to the report before listing the deficiencies.

Scott - I to am working with an AS-IS buyer that wants out. I also have been told that the priced was reduced because of cosmetic issues and in fact after the home inspection that was not true. Now the seller wants to repair the issues and the buyer wants out so I had Rebecca help with a contractor get an estimate that came out over the cost contigency repair. But, what extra work we do for them. Now I will find them another home.

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