Profile picture for samo2

Are bank owned homes being sold as is still allowing home inspections?

Home in question needs gas/elec and water turned on for inspection.  Understand would have to pay for these, but will it affect the bank's consideration of the offer if inspection contingent added to offer?
  • June 22 2010 - North Royalton
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Answers (7)

Profile picture for OhioPrettyHomes
Our standard Board of Realtor contract ALWAYS has an inspection contingency. Most banks will allow up to 10 days for inspections and a few days to agree on remedies. Of course, if a cash offer without an inspection contingency comes in, you may never get your offer approved ... My advice: if you are buying as an owner occupant (to live in the property) and nnot for investment purposes, please ALWAYS have a home and pest inpsection done!
  • June 30 2010
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In my market many of the bank owned properties had been winterized, in that all utilities shut off and the water main cut at the water meter.  If this property is priced below market and needs other renovations to make it livable, then I would recommend using a construction / renovation loan or the FHA 203(k) loan.  You should be given at least 7 days to perform inspections from the time the purchase contract is signed by the seller. You may find yourself competing against cash buyers or real estate investors / contractors that won't ask for an inspection contingency.  In any case you need to be prepared to bring in not only your home inspector, but local contractors to give you costs to cure in the worst case scenario e.g. there are plumbing issues in the walls that can't be tested till the water is on.  But if you can make an offer with the contingency the seller turns on the utilities for inspection try.  Ask your agent to run this by the selling agent to see if there is a hard line that the seller won't turn on the utilities.  If you are responsible for turning on these systems in a property you don't own, find out the cost upfront to turn on and off before making your offer.  There are more risks in buying this type of property do your homework.  Good luck on your purchase.

 
  • June 29 2010
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What does your contract say?  How can you know what yo are purchasing w/o checking it out! I do inspections for investors all the time; the utilities should be on and I do not feel the responsibility for even a brief courtesy utility re-servicing should be on the seller! Guess what, investors are missing their first time home buyers now so the flips have slowed down in my neck of the woods, so now we have picky investors! When their expenses go from 20k to 45 k; they learn quickly!
    The lenders have a great deal of the burden of this current housing market squarely on their shoulders. Proceed with care !
 Anything could happen at any time. You must conduct your self in a business like manner and educate your self and protect your interests! What if you really like the house and then discover some expensive and/or difficult problems with it?   Don't give into pressure or impulse!
 
  • June 29 2010
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Hi-

In our local market, you are normally able to ask for an inspection as part of the offer, provided you or your agent gets the utilities turned on. However, be aware that if a cash buyer or investor submits an offer with no inspection contigencies, the bank may chose that offer over your offer because of the inspection request.

Thanks
Jason
  • June 29 2010
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  • Ice L.Zillow
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  • June 23 2010
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Hi Samo,

REO are typically always sold as-is but many times they will allow a home inspection contingency. They will also turn on the utilities for the inspection unless there is a safety issue with doing so. But just because they allow it doesn't mean it won't effect their consideration. If you're in a multiple offer situation, it will also hurt your offer if the other offer(s) is contingent free. It's best to discuss this with your agent, they can help direct you when writing up your offer. Hope this helps.
  • June 22 2010
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Usually no. You should inspect and cancel the purchase if not satisfied with the results.

Ask your real estate agent and make sure your offer includes the option to inspect and cancel if not satisfied. Normally you will be allowed a short (sometimes very short) period to make the inspection.
  • June 22 2010
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