Which of the following is not a cost associated with an as-is sale?

Prepare for the BOMI Asset Management Test with flashcards and multiple choice questions. Each question includes helpful hints and detailed explanations. Ensure success in your exam!

In an as-is sale, the property is sold in its current condition without any warranties or guarantees from the seller regarding its state. The typical objective of an as-is sale is to transfer the property quickly, often at a lower price, which can lead to different types of costs.

Seller closing costs are generally expenses that the seller must pay to finalize the sale of their property. These often include agent commissions, title insurance, and transfer taxes. In an as-is sale, the seller typically aims to minimize their financial liability, which can include skipping the payment of their own closing costs. Therefore, payment of seller closing costs is not usually associated with an as-is sale, making it the correct choice.

Other costs mentioned, such as discounted prices, buyer closing costs, and repair allowances, are more directly related to the nature of an as-is transaction. A discounted price reflects the property's current, possibly less desirable condition, while the payment of buyer closing costs often arises as part of the negotiation to facilitate the sale. Likewise, repair allowances may be offered to the buyer to compensate for any necessary repairs, which is common in these types of sales.

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