Buying A Property in "AS IS Condition"
Banks have a new way of doing things lately in my area. Seems they ask an agent to list a home for sale prior to putting it on the market at auction. All of these homes are in questionable condition and many have been winterized to hopefully fool mother nature into NOT freezing the pipes. (frequently the results are less than the intended) Very sad houses with no family inside, that are waiting for a new buyer to sift through the MLS and the system allowing them to find this new home.. As an agent this process seems to get worse and as we deal with many banks with an "I don't care attitude"( I do get it, it is business) the process is flawed.
What I find very interesting is that the system has made it more confusing for buyers and their agents. As an agent I am not allowed by my MLS to list a home that can't be sold. I would have to put in "temp off market" and stop showings and any offers. We don't have a "coming to market" status the way it works in other parts of the country. Some way the banks have manipulated this system, figuring out how to get an agent to list the property that is basically unavailable. The banks hire the REO agent that lists the house with vague terms of an "auction pending", but then no information and no dates as to when this mysterious auction is happening. Great advertising for them, but not allowing the actual agents and buyers any details. The MLS listing states that any agent is welcome to put in a preauction bid with the listing agent, but no information about how this works. The listing agent refuses to speak with other agents and won't return phone calls. Hmmmm.???
Today a client wanted to know about home inspections. We were told that none are allowed for this house. No mechanical inspection as there is no electric or water turned on at this house. The home is not listed significantly low and does have some major outside issues noted that will require repairs. A buyer can bring in an inspector to look at the structure only. This home will not be able to get bank financing.
The mystery around these homes selling, at what price and when has become more a mystery for buyers when they are looking to view homes. They can't understand why an agent has no information about a home, and what the process is for them top purchase it. In the past there were many hoops to jump through, and a terrible process to navigate. Our new inventory of these homes seems a bit more like buying a blindfold and then wearing it to go house shopping.
I'm sure that some will be happy to take the risk, but as an agent that sees these homes on the market I find them a nuisance. Buyers want to look at what they can't have and I don't have the time or reason to show a home that can't be sold.
Auctions are dotting the landscape of our foreclosure market. Are you seeing these too?
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