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Susan Rochwarg's Advice

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Susan Rochwarg wrote:

CMA's & marketvalue

Response
I don't know where you are, but all markets are local. Certainly, in the uncertainty of today's real estate market and economic times, seller motivation will vary. In any market, ranges of value (what buyers and sellers will settle on) will vary up to 5 or 6% depending on terms and motivations of the parties. I would offer that sellers on the market through the last quarter oof this market will be motivated to make a deal and buying/selling in the range of 90-120 day solds may encounter appraisal issues in some cases. I would urge you to discuss an offer with your buyer's agent after more information than comparables. How about seller's motivation? Urgency? Circumstances? What's being absorbed into the market in the type/range of homes you're looking at?Just because it's the best deal imaginable, you don't want to buy it, right? There are other reasons to comtemplate and they will weigh in on what is established as today's value including how long it's been for sale, what's the history of sales for the property, what are the sellers' circumstances etc. Hope that helps a bit.
October 17 2010
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What does "as is" mean when it is being sold as a Bank Owned? A Short Sale?

Answer
As-is can be overused and misused. Typically when a 'seller' has not lived in the house like bankowned or investment property, the seller will use as-is to indicate they have no knowledge and make no representations.Further it implies they will make no adjustments in its condition to effect a sale to a buyer. As-is can means what you see is what you get! It does not prohibit an inspection but you must rely on that contingency/condition in your agreement rather than the seller's interest in repairing, correcting or making financial adjustments towards defects or repairs. As far as the bank as the seller, there is nothing prohibiting credits at closing as long as it meets your lenders limits and policies about seller paid Credits at closing but many times the bank selling will have policies that don't allow credits at closing or limit those credits to a $ amount. As far as the disclosure of known defects,if the broker (buyer or seller agent) has actual knowledge of a known defect, they must disclose. The same applies to the seller but this as-is is an attempt to make no representations or disclosures. If there's a health/safety issue or the seller needs a septic inspection (Title 5) to transfer, they can still put that responsibility on the buyer and ask the buyer to pay knowing it must be completed in order the transfer the property. If it is clear that the heating system is not operating, the agent should disclose that the heating system does not operate. As you see, this as-is can mean so much. More important, is the question of any conditions of a purchase that allow the buyer an out of the contract obligations pending determination of certain facts or pieces of information. It's up to you to obtain the answers that you want/need and make your offer conditional upon getting satisfactory results and answers. I advise that you review the terms of any offer with a real estate attorney too.
September 18 2010
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