AS IS - WHERE IS - Do you know what it really mean?  I don't think it can be explained enough.  There are so many foreclosed homes out there that it is important to understand what the buzz words mean - and this is one that won't go away (AS IS, WHERE IS).  Let's break it down:

"As is, where is" means that you are buying a property that could have repairs needed, but if there are ... and you purchase the property.....you will need to do those repairs. On the flip, you could be buying a property that is great shape.  You just never know, so you should always check the property out first. Know what you are buying, before you buy!

Not all foreclosed property is damaged or halfway destroyed.  Some properties are in pretty good shape except maybe some cosmetic repairs, or some minor ‘fix-its".  Usually these days you will get a property where the owners have not been more than a few months moved out, so the odds are that it is in normal working condition.  The property has not been sitting on the market for several months to a year.  However, there are some properties that have been sitting on the market for a long time and will be in need of some major repairs.

You probably expect the listing agent to tell you everything about that property - RIGHT?  Not true.  BECAUSE....When properties are foreclosed, the banks that now own the property will have no knowledge of the property. They therefore sell the property "as is, where is." This means that you will receive no disclosures and that you are literally buying the property in its current state. In California the banks are exempt from the standard TDS (Transfer Disclosure Statements) forms that are mandated in other type sales. The reason for this has been stated:  The bank has no knowledge of the property so basically how can they disclose.

What banks push is that the homes are priced accordingly - so they usually stand firm on the price they decide to list the house for. Getting a price reduction is like pulling teeth! They look at it like this: you are already getting a deal with the list price, why should we accept even less than what we ask, why should we reduce?  However, it is usually not the case of it being a deal at the list price; the odds are that foreclosures and REO properties are frequently miss-priced (from $10-20K). So, do not make the mistake of assuming that all foreclosed or REO properties are good deals.  Do your homework.

You should probably be reminded that not all used cars sold (or new ones for that matter) are a deal.  Some are and some are not.  Same works with real estate property.

So what can you do to be assured you are getting a pretty good deal?

• Inspect first - do a full inspection, Check out the property thoroughly
• Check out the neighborhood - won't hurt to knock on neighbors doors and see if they know anything about that property that you should know
• Check public records
• Know the comps for the radius area

After all, with an "as is, where is" property, whatever problems you discover after you purchased the home are yours to repair and you will have no recourse on the seller.

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Check out: Real Estate Terms/Definitions.  And take a look at Mother and Daughter Blog and D'Adrea's Mother and Daughter Blog  - for other tips for Sellers and Buyers. I work with my daughter as the Mother and Daughter Real Estate Team at Family Realty Group and we also focus in Short Sales and the Pre-Foreclosure process and REOs/Bank Owned Properties.  Our consultations are free.  Our aggressive marketing plan includes on-line listing advertising.  If you are thinking of selling or buying a home in Northern California's Central Valley (San Joaquin County CA - includes Stockton, Manteca, Tracy, Lathrop) plus Stanislaus County CA - includes Modesto, Salida, Riverbank) & the East Bay (Alameda County CA - includes Hayward, Fremont, Newark, Union City & Oakland) and surrounding areas give us a call.  If you would like a FREE Home Seller or Home Buyer Handbook, please call us at 866-750-8282 or email at US or TEXT Message us at 209-346-9806.

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