By: Don Sieb
Part IV Buying REO Properties-What is the condition of the property?
Be prepared to buy the property as is, or make a strong offer to get your repairs made. Banks will always push to sell the property "As Is" to avoid coming out of pocket with additional money.
Working with a solid Realtor can help your negotiations. The banks always want to sell the property in "as is" condition.
- Most of them will provide a Section 1 termite clearance but make sure you include this in your offer. In addition, make sure you get a good inspection of the property so you know exactly what you are buying.
- It is so important to have a good physical inspection of the property. Most contracts call for a time period to back out of the transaction should you find problems with the home.
- Make sure you have enough time to back out of the transaction if you need to and do not jeopardize your deposit.
Even though the bank wants to sell the property "As Is", make sure you try to get the bank to make the needed repairs or provide you with a credit at closing to complete the necessary work.
If it really gets tough and you feel that you really want to back out of the deal because of the repairs, the bank may work with you instead of having to go out and find another buyer. This depends a lot on what the current market is doing in your area and how many other buyers the bank may or may not have.
HomeSeeker Center specilizes in distressed Property Sales. We strongly recommend Buyers seek our Real Estate Specialist to assist Buyers in purchasing bank owned properties.