Buying a Bank Owned "AS IS" ie Getting Married on Your First Date? Really?

Would you really get married on a first date? Would you sign a contract to purchase a home "AS IS"?

We have all by now helped buyers purchase Bank Owned Homes aka REO's. We know the term "As Is" no repairs to be done. After all it is the first Counter Offer your buyer will sign before the bank will even accept your offer, the contract, written by clever high paid lawyers repeatedly states you are purchasing the home "AS IS" with no repairs to be paid for by the seller.

I have to liken this to getting married on a first date. You are strongly attracted to them, but enough, that you could commit the rest of your life? Yet isn't that what the bank expects of you. To commit to buying a home that you spent maybe 30 minutes looking at? And actually purchase with out knowing all the flaws and exactly what "AS IS, IS"? We do it all the time in this market.

You spend more time looking for a car to purchase. And this is a much bigger investment, the dynamics of purchasing and living in a home has so many variables, monetary, emotional etc. Not to mention all the what "ifs".

I let my buyers know up front that they will need to pay for and be present for the most important inspection "The Home Inspection" and even though the seller will usually pay for the termite inspection you might want to get a second termite inspection opinion. Maybe even a third opinion! An attitude that what difference will it make it is "AS IS" no repairs? Truth be known it can make a HUGE difference in whether or not this house could possibly be the "Money Pit" from Hell!

Another fact is if needed repairs are Health & Safety related or your lender insists on certain repairs chances are the bank "will do the repairs"! If they don't/won't and you cancel the purchase agreement they should disclose to the next buyer. After all before the inspections they may not have known, since they did not live in the house, but now THEY DO!

Yes, purchasing a Bank Owned house of your dreams can be a wonderful experience when done with Due Diligence! Get the inspections and negotiate from there, go in with your eyes wide open!