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Answers (19)
- Vanessa Rojas, "VanessaRojas1"
- Contributions:56
You should pay for a home inspection which runs about $200.
- Reid Kaplan, "Playa Vista Homes"
- Contributions:59
Make sure the home is connected to the public sewer in the street if you are expecting it to be. Since you're probably not getting disclosures from the seller, if this is not in the scope of your property inspection, shell out a couple hundred bucks for a sewer scope. It could save you $10,000 or more if you don't realize you have a septic tank and it backs up.
- Seth Captain, "CaptainSeth"
- Contributions:142
Your Checklist:
1. Check the bedrooms to see if anybody is still sleeping
2. Look under sinks, at furnace/air conditioner, roof/fascia --- basically anything mechanical you can see. You may need someone with you who knows what's going on, but cheap p-traps under sinks, patchwork piping on mechanicals, rotten fascia boards or bumpy roofs, trim work that doesn't match or isn't mitered correctly >>>> these are all tell-tall signs that the previous owner didn't properly maintain the home.
3. Inspect loose ceiling panels, loose wall boards, or crawl spaces for cash, valuables, or really cool old newspapers
4. See if the no longer sleeping people may be in the backyard, or occupying the basement.
5.. If you have no background with home improvement, it's best to walk through with a trusted contractor or home inspector before placing an offer.
1. Check the bedrooms to see if anybody is still sleeping
2. Look under sinks, at furnace/air conditioner, roof/fascia --- basically anything mechanical you can see. You may need someone with you who knows what's going on, but cheap p-traps under sinks, patchwork piping on mechanicals, rotten fascia boards or bumpy roofs, trim work that doesn't match or isn't mitered correctly >>>> these are all tell-tall signs that the previous owner didn't properly maintain the home.
3. Inspect loose ceiling panels, loose wall boards, or crawl spaces for cash, valuables, or really cool old newspapers
4. See if the no longer sleeping people may be in the backyard, or occupying the basement.
5.. If you have no background with home improvement, it's best to walk through with a trusted contractor or home inspector before placing an offer.
As in any purchase you MUST have a home inspection by a QUALIFIED home inspector. Make sure your offer takes in to consideration the repairs that may be needed to bring it to market standards.
More than ever you MUST buy right and not over improve. Allow time for the bank to respond and if the property is priced aggressively be prepared for a multiple offer situation. Set a max price and do not go past it in the heat of the moment. Choose your Realtor wisely and they will be able to guide you thru the process.
More than ever you MUST buy right and not over improve. Allow time for the bank to respond and if the property is priced aggressively be prepared for a multiple offer situation. Set a max price and do not go past it in the heat of the moment. Choose your Realtor wisely and they will be able to guide you thru the process.
- Lynne Horner GRI, ABR, SFR, "Lynne Horner"
- Contributions:33
Make sure you get a thorough inspection of the property. Also be aware that while the bank owned properties don't take as long to close as a short sale does, it can still take some time to close, especially if there are title issues. There certainly can be some good "deals" when buying a bank owned property. Use the services of a good Realtor to help you through the process.
- lndshk
- Contributions:6
Do these answers pertain to short sales also,
- Carolyn Strong, "Carolyn Strong"
- Contributions:4
You want to make sure that the property has been inspected well. There is no recourse after the sale with the banks on any issue that comes up on the house. There is no diclosure statement telling you any history on the house that a normal resale property will give you. The banks usually give you a lower coverage title insurance that you may need to pay for an upgrade on it to get better protection. Don't waste time on properties that are "fixers" unless you are a cash buyer or it is good enough to pass appraisal. FHA and VA will be the toughest. The paperwork is different from the MLS forms and you want to make sure you work with an agent that can help explain them to you well and has experience with bank owned properties. These forms are written to protect the banks. There are many great bargains out there and there are certain stategies that work best when trying to obtain a good deal on these homes. My best advice is to make sure your agent has the correct experience in this field, to guide you through the process and get you the best overall protection and deal.
- Lola Jefferson, "PleasedToBeYourAgent"
- Contributions:70
You need to figure out if you're looking for a "fixer-upper" or a "ready to move in" home. If you're going towards a "fixer-upper" make sure you have contractors ready to provide estimates. If you're looking for a "move in ready home", make sure you have a check-list of what you expect in the foreclosed home. Have your agent give the comparables for the type of foreclosed homes you're interested in purchasing. No matter if you go "fixer-upper" or "move in ready", make sure you have a Very good home inspector.
- KevinLUzzle
- Contributions:38
From our experience, make sure that the representing company is authorized to sell the property. This has been a nightmare for us!
- Kowitz & Freund Realty Team, "carlafreund"
- Contributions:61
Dear Talkc,
The first thing I tell buyers about purchasing a foreclosure in our area is to make sure it is a true deal. Not all foreclosures are a deal. You also want to consider whether or not you should purchase in a high foreclosure area. That could indicate prices will continue to fall should more foreclosures come on the market. It could be a difficult area for re-sale. Make sure you get an appraisal even if you're paying cash.
Next is consider the condition of the property. As mentioned earlier, foreclosures are "as is". Some may need a lot of work to make it liveable or saleable. Ask yourself if you're handy and if you have the reserved funds to make the repairs. If you're getting a loan, find out if there are any repairs the lender won't accept or loan against and if that's the case, is the seller willing to make those repairs. Make sure you do all necessary inspections for the age of the home and the area you live in (home inspection, pest inspection, radon test, lead, well, septic, and others).
Do your homework about the area your purchasing in regarding road expansions, zoning, etc.
Always have a Real Estate Professional looking out for your best interest. Your Real Estate Representative deals with these things on a daily basis and will be your best resource to making a wise decision.
Best of Luck!
The first thing I tell buyers about purchasing a foreclosure in our area is to make sure it is a true deal. Not all foreclosures are a deal. You also want to consider whether or not you should purchase in a high foreclosure area. That could indicate prices will continue to fall should more foreclosures come on the market. It could be a difficult area for re-sale. Make sure you get an appraisal even if you're paying cash.
Next is consider the condition of the property. As mentioned earlier, foreclosures are "as is". Some may need a lot of work to make it liveable or saleable. Ask yourself if you're handy and if you have the reserved funds to make the repairs. If you're getting a loan, find out if there are any repairs the lender won't accept or loan against and if that's the case, is the seller willing to make those repairs. Make sure you do all necessary inspections for the age of the home and the area you live in (home inspection, pest inspection, radon test, lead, well, septic, and others).
Do your homework about the area your purchasing in regarding road expansions, zoning, etc.
Always have a Real Estate Professional looking out for your best interest. Your Real Estate Representative deals with these things on a daily basis and will be your best resource to making a wise decision.
Best of Luck!
- Chelsea Wilson, "chelseawilson"
- Contributions:18
Like the other posts have said, get an inspection done and just keep an eye out for any red flags as there will be no seller disclosure from the bank on past problems and repairs. While the bank will almost always advertise you are buying the home "as is", it is always worth a shot to ask for repairs. Ive had banks do repairs as well as lower the purchase price on homes I have sold. You don't get what you don't ask for!
- Michael Helton
- Contributions:456
One thing most people do not consider is the unseen damages from neglect or abuse.
It is like buying a car that was a rental car. It may look nice and shiny but you KNOW that thing was rode hard and put away wet.
The same applies to foreclosures. Most people who know they are losing their home stop doing the basic things that make a big difference, like changing the filters, vacuuming, watching what they put down the drain, etc.
So, in addition to a thorough inspection I would plan on having everything serviced, ducts cleaned, and all plumbing scoped.
It is like buying a car that was a rental car. It may look nice and shiny but you KNOW that thing was rode hard and put away wet.
The same applies to foreclosures. Most people who know they are losing their home stop doing the basic things that make a big difference, like changing the filters, vacuuming, watching what they put down the drain, etc.
So, in addition to a thorough inspection I would plan on having everything serviced, ducts cleaned, and all plumbing scoped.
- CATHY SLOAN
- Contributions:477
Bank Owned homes are sold "AS IS" Make sure your offer is contingent upon your acceptance of the Home Inspection.
If paying cash be sure to have an attorney review the title mark-up and commitment. Certain items on the title commitment are optional, if you don't have an attorney looking out for your best interest, later on you may find there was an "exception" on the title policy and you may not have full title protection. Your attorney may advise you to pay the $25 extra to add a title endorsement
If financing your lender usually directs what they require to be covered in the owners title policy. If there is something that could cost you $$ to fix on a survey make sure it was not an "excepton" on your title commitment.
If paying cash be sure to have an attorney review the title mark-up and commitment. Certain items on the title commitment are optional, if you don't have an attorney looking out for your best interest, later on you may find there was an "exception" on the title policy and you may not have full title protection. Your attorney may advise you to pay the $25 extra to add a title endorsement
If financing your lender usually directs what they require to be covered in the owners title policy. If there is something that could cost you $$ to fix on a survey make sure it was not an "excepton" on your title commitment.
- KevinLUzzle
- Contributions:38
I would get my attorney on the deed as quickly as possible, I was almost to the closing title before it was discovered that BOA did not even have clear title to sell my bank owned foreclosure. I wasted three months, I have to move in a week but I don't know where. Have a contingency plan and do not plan the dream until you know its a reality. Good Luck!
- Karla Wagner, "karlaw"
- Contributions:151
In addition, since bank-owned properties are sold as-is/where-is... If there any major issues like roofing, siding, structural... these are the types of issues that will be called out on your lender's appraisal, (especially FHA, VA financing), as they will require repair/replacement prior to your loan being approved. So you may ask your lender to research a rehab loan program or you may choose to continue your home search. And yes, always do a home inspection, it's the best money you'll ever spend.
- Heather Cutrer, "Heather Cutrer"
- Contributions:16
Look at the financing options available for the foreclosure on the listing. If you're wanting to do an FHA or VA loan, and there are major repairs needed on the property, you probably won't be able to get one of these types of loans.
Also, I would definitely agree that you should get an inspection by a licensed inspector. Foreclosures usually have no property disclosure information on them. It's best for someone who has a checklist for all major items in the house to come in and do a complete inspection.
- Harris Reva, "Reva Harris Titusvil"
- Contributions:2
In most cases, the buyer does not get a warranty deed but a "special warranty" deed - akin to a quit claim. Speak with an attorney who specializes in real estate in the state you are purchasing. With so much fraud or sloppy work in the foreclosure firms, particularly in Florida, it is not a purchase that should be made without the advice and assistance of an attorney.
- Christopher McQueen, "Christopher McQueen"
- Contributions:2
Nothing more than you would in a normal property. Your client knows it is being sold "As Is". You normally get an inspection period so get the inspection. It may take a couple of days for the bank to respond to your offer. I have not had any issues with bank owned properties. They can be a great deal.
- Jim Stevenson, "therealtorguy"
- Contributions:1111
You will be buying the house as is, banks do not make repairs. But your offer can still be contingent on a satisfactory inspection. Inspections on bank owned properties is a good investment.
Also, some foreclosed homes will be missing heating and cooling units, water heaters, appliances, bathroom fixtures and light fixtures. You might want to get a general idea of what these items will cost prior to writing an offer.
Some houses will have the utilities shut off. If you want to do an inspection, you may be required to have the utilities turned on for the inspection, disconnected after the inspection and you may even have to re-winterize the house .... so you might want to get approximate prices for that also.
Good Luck! And get it inspected!
Also, some foreclosed homes will be missing heating and cooling units, water heaters, appliances, bathroom fixtures and light fixtures. You might want to get a general idea of what these items will cost prior to writing an offer.
Some houses will have the utilities shut off. If you want to do an inspection, you may be required to have the utilities turned on for the inspection, disconnected after the inspection and you may even have to re-winterize the house .... so you might want to get approximate prices for that also.
Good Luck! And get it inspected!
what kind of things do I need to look out for when considering buying a bank owned home?
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