The term "As-Is" has been interpreted in many ways in real estate.If you talk to a real estate attorney they will tell you that there is no such thing....if you talk to a bank they will say "As-Is" means exactly what it says....what you see if what you get....have any and all inspections but be very clear that we are not doing work or reducing the price or anything else....
There are numerous agents in our market that take the meaning of "As-Is" as a negotiating tool....even though they know it is an "As-Is" sale they still try to get everything they can from the seller....some ask for repairs...some ask for the pest work to be done....do the banks do the requested items? Sometimes...but most the time not.
Different banks have different policies regarding this but most all Freddie Mac properties are sold "As-Is" and they will not do any work.The buyer has the option to move forward or cancel after inspections....AS-IS to Freddie Mac is not a negotiating tool.....
If you are dealing with a different entity....a bank like say chase or citi group etc they may do some repairs....I hear Wells Fargo almost always does repairs and is open to fixing things requested!
If you do get your request satisfied consider it a great thing and that it doesn't happen all the time...going into a transaction with the idea that "We will get them to fix our 20 items on the Home Inspection" is a sure fire recipe for a canceled escrow....any agent that tells you I can get them to fix what you want is coming from PURE EGO..... Ego is what kills pilots...kills surfers and will certainly kill a real estate dea if it gets out of hand.
What are the items that the banks might fix you ask? Health and Safety items are the most common....occasionally a roof or pest work etc but very few banks do Everything After Inspections....they price the REO's Sharp 80-90% of the time and that is the reason the REO's are outselling the regular homes in sales but about a 2 to 1 ratio or better!
If you have no expectations on getting your list fixed after inspections then you will be in a good place and not be disappointed....the folks that are the most disappointed are the ones that are told the bank should fix what they want or being misinformed and hearing that they alway fix what you want! Not true....
If you are thinking of purchasing a redding ca area reo make sure you select someone that deals with bank owned homes every day....Why? Sometimes the difference in knowing "Exactly" how to write the offer up the First time is the difference in getting the home and hearing "They went with another offer!"......many times when people hear that they "Went with another offer" its because the agent didn't write it up the way the bank or GSE likes to see it!! The easiest thing to do for the agent then is to talk about how unfair it was...or it was this or that....it takes a pretty stand up agent to admit that they make a mistake....a mistake because they didn't write the offer up the way the GSE or the Bank likes to see it....so they went with another offer yes....one they wouldn't have to counter back!
Write a strong offer the First time....you might not get a second chance!!
So can you use your VA or do FHA on an AS-IS cash sale?? Answer: NO......
Many times agents find the perfect home...show their clients.....everyone is Excited....they write an offer and send it in.......and it gets blown out of the water....WHAT....HOW can that BE the buyer says??? In this case....you are using a financing vehicle when the home is clearly marked -CASH sale in the MLS.....Ask your agent up FRONT if the home will work with your chosen financing type?? Save yourself some grief.....If it says CASH in the MLS it means....CASH.....or a hard money loan may work....anything else won't......a 203k in theory might but I have yet to see a GSE (Freddie Mac or Fannie Mae) take an offer with a 203k loan....they usually take a bit longer to close and the banks/GSE's don't love them.
When searching for a Redding Ca REO make sure that there are no other offers in on the property if you decide you want to write it up! If there are keep in mind that offering "Below" the list price with other offers is a sure way to NOT get it.....
Good luck to you....
Contact me should you wish to find out what is coming up soon as an REO in the greater Redding Ca area....if you are not working with an agent or Realtor.....
Richard
530-248-5627
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