With so many bank owned properties falling out of escrow I wanted to touch upon the selling term "As-Is" and what it means in Redding Ca Area Real Estate transactions involving REO's.
The term As is means as you see it...with all faults! Does it mean the bank or government agency will never ever fix anything at all? No....there are a relatively few times they Will fix certain items if they pose an immediate danger such as electrical etc.For the most part plan on the bank NOT doing repairs....then if they do agree to fix it you will be happy.
The purpose of Inspections on an "As-Is" sale are to find out exactly to the best of your inspectors knowledge what is going on with the home.Inspections on a bank owned home are for the buyers Information purposes....not a negotiating tool to see if you can get the bank to fix the 42 items the home inspector found on your 50 year old home!
As a Buyer if you enter the transaction with the correct understanding and DO get the bank or GSE to fix an issue or item its a great thing....if not then you are not disappointed because you were thoroughly informed not only by the MLS print out that your agent gave to you mentioning the as is term but the disclosures themselves that you signed with the term as is numerous times....
Its not a suggestion when you see the term of sale "AS-IS"....its the way that the Majority of the REO's are sold....hence the great prices on the bulk of them....Most REO's are priced to sell....that is why they have multiple offers in on them in many cases.
The Bank has already lost sometimes $100k/150k or more on some of these homes...so with that in mind having the proper expectation of what will happen will save you a whole lot of stress!
Shy away from any agent that says we should be able to get you all the items you want fixed or get you a $5k or $10k credit!! on this REO! They are simply OVER Selling not only themselves but are putting you on the path for disappointment! If you do get an item or two fixed or a small credit you are lucky....regardless of what you hear it doesn't happen ALL the time! It simply doesn't....anyone that says it does has not sold many if any Bank owned homes!
Most of the Banks and GSE's have factored in the As Is part into the price....if they planned on fixing everything on the home inspections they would have to raise the list prices to compensate....and that doesn't get much activity....a home priced at the market or above....yawn!
Get the Right Info....make informed decisions and move fast on the best ones....they don't last long....especially the best priced homes in the best areas...People today associate REO with a deal! And in many cases....they are Right!
To finding the best deals.....
Regards
Richard Goates
Broker of California Real Estate
530-248-5627
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