This post is for buyers who are buying a short sale or REO. There are lots of you, at least in Carlsbad and nearby communities of Oceanside, Vista and San Marcos, and from what I hear, elsewhere too. 

A much earlier article on buying a short sale talked more about the process, and issues to be aware of.

Take a look, then come on back. I'll wait...

Now let's get back to the business of buying a short sale or an REO and what you may be missing. 

In many real estate transactions it is common for buyers to find that certain things will not remain in the property, such as the washer and dryer, or the refrigerator. This varies from deal to deal, and may be disclosed up front in the MLS listing or become part of the negotiations. These items may be minor issues, or can become major conflicts depending on the parties involved and their feelings about the exclusion. 

Buying a short sale or REO may dredge up more issues of things that do not remain with the house. In fact, they often are simply missing. And they are important to watch for, since the seller likely won't return them, and in the case of an REO, the bank is not likely to supply them. In some cases the amount of stuff missing is pretty surprising. 

Appliances are often not there, including dishwashers and stoves (unlike in traditional sales where these are usually fixed in place and therefore stay with the property).  That can mean thousands of dollars to replace a washer, dryer, stove/oven, microwave, refrigerator and dishwasher. And clearly you can't live there without some of this stuff. 

Other items I have seen missing - toilets, sinks and faucets, tub, shower stalls, doors, sliders, windows, screens, carpet, tile, AC units, door knobs, light fixtures, disposals, plumbing (pipes), electrical items (outlets, switchboxes, receptacle covers), walls or portions thereof, entire kitchens and baths, water heaters...the list can be a bit extensive. 

The reason to be aware of these missing items is obvious - as the buyer you will need to replace them, and this costs money. Perhaps more than you are bargaining for, or have the budget to deal with on top of your mortgage.

Now that's not necessarily all bad, since you end up with new appliances with warranties, and other new stuff which looks better than perhaps the originals, and adds value. But it's another aspect of buying a short sale or REO that can be overlooked and not factored into the decision process. 

A good question any prudent buyer should ask when buying a short sale or REO...."What am I missing?"

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If I can provide more information about Oceanside real estate and surrounding areas, or the housing market in general, or otherwise assist you in your homes search, please contact me by phone or text at (760) 840-1360 or email me at JDowler@remax.net.

All content copyright © 2009 Jeff Dowler Carlsbad Homes and Real Estate Tidbits