Thursday, September 8, 2011 / by Ira Miskin
When is Sold As-Is not Sold As-Is
In this current buyers market, many Buyers start out their home search with the goal of finding a deal! Certainly there are more and more distressed properties being sold at prices below current market value. Many are foreclosed or bank-owned properties also known as REO's - a term used by real estate professionals meaning Real Estate Owned. They are being sold, with a condition of the sale to you, the Buyer, in As-Is condition.
As-Is means the Seller will not make any representation of prior knowledge of the property's condition and will not make any concessions for repairs to the property. So, if the windows are fogged, or the stove isn't working, or the carpet is stained and the light fixtures don't work - or are missing - you, the Buyer are responsible for any and all repairs to the property once you purchase the home. However, as a condition of the sale, you, have the right to inspect the property to determine what the property's repair issues are. During that inspection period, also called the due diligence period, you have the option to terminate the purchase agreement if you believe the repair issues are greater than you can handle or afford - because the Seller will not make any concessions for repairs. They are selling the property As-Is. However, if your Realtor is experienced in helping their Clients purchase foreclosed properties, they know that Sold As-Is does not always mean Sold As-Is.
Recently one of our Buyer clients who had been searching for a really great deal found the perfect home. It not only fit their space and size and location criteria, but after some tough negotiating on the part of their Realtor, they reached agreement on a price that was 55% of the original sale price when the property was first sold 8 years ago! Additionally, the Realtor negotiated $10,000 in Seller paid concessions, a pre-paid termite inspection, and a home warranty on behalf of the Buyer.
During the inspection a variety of issues were revealed, most of which were deferred maintenance issues which the Seller would not pay to repair. Property Sold As-Is! However two of the three air conditioning units needed repair and the Buyer's lender insisted these infrastructure items must be working as a condition of finalizing the Buyer's home loan. The cost to repair the units was $2,700.
So now the negotiation began anew. With some minor concessions by the Buyer and the knowledgeable leverage strategies employed by our team's Realtor, the Seller agreed to pay for the cost of the repair by providing a check at closing to the vendor selected by the Buyer to do the repairs. The vendor agreed to make the repairs prior to closing, and the Lender agreed to fund the Buyer's loan.
For a series of short videos about what to look for and how to begin your search for your "great deal" in a distress sale property whether you're a first-time home Buyer, move-up Buyer, Investor or you are looking for a deal on a vacation home this Foreclosure Video Series will help you get started.
For access to a complete series of free video and informational emails that can provide you with many of the important strategies and information you will need to make the best home purchase you can CLICK HERE ==> SPECIAL E-MAIL SERIES REPORTS and ask for the free no obligation series of email reports to be sent to you regularly over the next few weeks. Just put FREE VIDEO EMAIL SERIES in the subject line.
If you just want to start out by searching the MLS to see what types of distress sale homes are available in your projected price range and area of preference CLICK HERE => SEARCH THE MLS FREE
So when are Sold As-Is foreclosed property sales ONLY Sold As-Is? Only when you and your Realtor fail to challenge that "Sold As-Is" stipulation. Because not every Sold As-Is foreclosed property is Sold As-Is.
As-Is means the Seller will not make any representation of prior knowledge of the property's condition and will not make any concessions for repairs to the property. So, if the windows are fogged, or the stove isn't working, or the carpet is stained and the light fixtures don't work - or are missing - you, the Buyer are responsible for any and all repairs to the property once you purchase the home. However, as a condition of the sale, you, have the right to inspect the property to determine what the property's repair issues are. During that inspection period, also called the due diligence period, you have the option to terminate the purchase agreement if you believe the repair issues are greater than you can handle or afford - because the Seller will not make any concessions for repairs. They are selling the property As-Is. However, if your Realtor is experienced in helping their Clients purchase foreclosed properties, they know that Sold As-Is does not always mean Sold As-Is.
Recently one of our Buyer clients who had been searching for a really great deal found the perfect home. It not only fit their space and size and location criteria, but after some tough negotiating on the part of their Realtor, they reached agreement on a price that was 55% of the original sale price when the property was first sold 8 years ago! Additionally, the Realtor negotiated $10,000 in Seller paid concessions, a pre-paid termite inspection, and a home warranty on behalf of the Buyer.
During the inspection a variety of issues were revealed, most of which were deferred maintenance issues which the Seller would not pay to repair. Property Sold As-Is! However two of the three air conditioning units needed repair and the Buyer's lender insisted these infrastructure items must be working as a condition of finalizing the Buyer's home loan. The cost to repair the units was $2,700.
So now the negotiation began anew. With some minor concessions by the Buyer and the knowledgeable leverage strategies employed by our team's Realtor, the Seller agreed to pay for the cost of the repair by providing a check at closing to the vendor selected by the Buyer to do the repairs. The vendor agreed to make the repairs prior to closing, and the Lender agreed to fund the Buyer's loan.
For a series of short videos about what to look for and how to begin your search for your "great deal" in a distress sale property whether you're a first-time home Buyer, move-up Buyer, Investor or you are looking for a deal on a vacation home this Foreclosure Video Series will help you get started.
For access to a complete series of free video and informational emails that can provide you with many of the important strategies and information you will need to make the best home purchase you can CLICK HERE ==> SPECIAL E-MAIL SERIES REPORTS and ask for the free no obligation series of email reports to be sent to you regularly over the next few weeks. Just put FREE VIDEO EMAIL SERIES in the subject line.
If you just want to start out by searching the MLS to see what types of distress sale homes are available in your projected price range and area of preference CLICK HERE => SEARCH THE MLS FREE
So when are Sold As-Is foreclosed property sales ONLY Sold As-Is? Only when you and your Realtor fail to challenge that "Sold As-Is" stipulation. Because not every Sold As-Is foreclosed property is Sold As-Is.
