1. The know that the house needs repairs but they don't have any money to make any repairs and they want the buyer to know that fact up front so that there are no issues later when the physical inspection report is completed.
2. The seller does not occupy the home and is not able to make any repairs on the home.
The ramifications are -
If the seller failed to fully disclose known issues on the home the buyer might be able to sue.
A buyer should always have a licensed physical inspection on a house regardless if it is an "as is" sell or not. A seller should at the minimum provide a Home Warranty to the buyer in order to avoid possible litigation.
The buyer CAN have an inspection completed and if faults are of a non-cosmetic nature are found, the buyer can give the seller the option to fix them.
The seller may choose to fix them or simply say NO!
The buyer can then choose to proceed with purchase without repairs or end negotiations and find another house.
Homes sold 'As-Is' DOES NOT INDICATE A PROBLEMATIC HOME! All of my listing are sold "As-Is" with right to inspect. To repeat, it allows Florida home sellers more control over the sale of their home.
Now when you add 'As-Is' to foreclosed or other 'non-traditional' sales the situation changes significantly. Consult your real estate professional.
Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group, Palm Harbor, FL