I quote as follow:
"Just Reduced $20,000! ! ! Sold AS-IS - lender will NOT make ANY repairs! ! ! REO - Lender Owned Property. Sold As Is, Where Is, And With All Its' Faults. No Warranties Extressed Or Implied!"
2007-12-24 05:31:03 · 7 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
I'm a Realtor that specializes in REO. I have 13 listings on the MLS and 20 more on the way, all foreclosures. This statement is to protect the seller. The bank that owns the house has never even seen it in person so they certainly don't know whether it floods during the rainy season or if the roof leaks.
The buyer is expected to have a home inspection and whatever other inspections they want to do in order to be sure the house isn't falling apart. The seller doesn't want to get sued six months later by the new owners when the basement floods.
I normally price REO's far below market value for this reason, and if the buyer finds something wrong during the inspection period they can always ask for the seller to credit them $X to fix the problem. They may not get it but they can always ask.
So this statement isn't a big red flag that the house is structually unsound or anything like that. It's just meant to let the buyer know that the seller will not be able to disclose any defects because they don't know of any.
Spend the $350 and get an inspection so you'll know for sure before you buy the house!
2007-12-24 10:34:31 · answer #1 · answered by operababe_61 3 · 0⤊ 0⤋
In other words, they will not be liable for anything that you as a buyer would take issue with. Even if you have an inspection, AND I STRONGLY URGE YOU DO SO!, especially on a REO. Any issues that arise from the inspection will be at your expense to resolve. But at least you will know what you are getting for the money. This isn't a trick, it's life in buying pre- and forclosed properties. The lender has not lived in the house, most have not even seen the property, so they are only interested in getting the debt off their books. Be smart, have an inspection! I know you may pay for an inspection and then not buy the house, but it's better to have spent $375 and not thousands to find out you didn't have the funds the fix things. Understand?
2007-12-24 05:37:17 · answer #2 · answered by Anonymous · 2⤊ 0⤋
The trick is to buy the house for as little as possible. The bank doesn't want to own the house any longer than necessary.
How much do you want the house? Is it for your primary house or investment?
If this is for you to live and you are convinced that it is a GREAT deal, make an all cash LOW offer and see what happens. Ask the listing realtor for ALL comps in a half mile radius of similar houses. Make sure you are getting SALE price not LISTING price.
Only make an all cash offer if you know that you have the funds needed to buy the home. It is just that you can usually get a better deal when the bank knows that the buyer is serious.
Like others have said - make sure to get the inspection done. You might be able to renegotiate the price if the inspection report turns up a big problem.
Good Luck
2007-12-24 08:19:29 · answer #3 · answered by Tied 2 · 0⤊ 0⤋
There are three things you need to remember when buying REO properties:
1) These homes many times are sold "as is" with no implied guaranties or warranties like with new homes
2) If the price was reduced for a quick sale, maybe it is still overpriced
3) Always get a home inspection so you know what is wrong and so you don't end up buying some elses problems.
2007-12-24 05:51:10 · answer #4 · answered by annazzz1966 6 · 0⤊ 0⤋
I just bought an REO property. Just get a good inspection (it wouldn't hurt to have a contractor go as well) and have a lawyer on your side to give over the contract (having a good lawyer can help you out tremendously). Also, check with your local building dept to find out about the c/o's, open permits or any violations. It's a pain dealing with a bank as a seller but you should be getting a nice discount.
2007-12-24 06:19:33 · answer #5 · answered by tianaramal 4 · 0⤊ 0⤋
If you like the house and the location is satisfactory, get an inspection and know what you're getting into.
Even though the price has been reduced, you can still make an offer below the asking price. Never hurts to try.
2007-12-24 05:44:51 · answer #6 · answered by Rita A 3 · 0⤊ 0⤋
Lenders have their attorneys write up A BUNCH of stuff to basically say that they won't spend any money to make the house any pretier than it is now. Also, since they got the house through foreclosure, they don't actually have nay knowledge of its condition - so the buyer needs to satisfy himself as to the condition of the property.
With foreclosures, the statement yo quoted is just normal.
2007-12-24 05:37:39 · answer #7 · answered by teran_realtor 7 · 1⤊ 0⤋