Does “As Is” Mean I Can’t Have A Home Inspection?

Most foreclosures and short sales are sold “as is”.  Many homebuyers are confused as to what this means for them.  I am often asked whether this means that they won’t be allowed to have the home inspected.

You will be able to have a home inspection but it will be for informational purposes only.  This means that the seller will not perform any repairs if something shows up in the inspection.  However it is important for you to have the home inspected anyway so that you will know what problems you might have to deal with.   Also, I like to write into the offer that the contract will be contingent on a satisfactory home inspection.  That way if something is found that the buyers are not prepared to accept, they will have the opportunity to declare the contract null and void without penalty and their earnest money deposit will be returned.  Some banks have similar terms written into their addenda.

In addition the home inspector may find something that needs to be repaired that the lender such as FHA will not accept.  In this case the loan will not be approved unless the repair is performed by the seller before closing.  Sometimes the bank will agree to perform the repair, but other times they won’t and the contract will fall through.  Homes that will obviously need a lot of work are good candidates for FHA 203K loans, in which the cost of the repairs is rolled into the mortgage up to a specified amount. 

When you are considering the purchase of a distressed property, a home inspection is especially important.  Remember the owners of these properties have been struggling for sometime to be able to hang on to their homes.  It was all that they could do to make the mortgage payments, and their was no extra money for repairs.   Routine maintenance has been deferred.  Even the rare foreclosure that appears to be in move in condition may have unseen issues.

There are some great deals on short sales and foreclosures in our area, email me if you would like a list of distressed property listings in any of the central Virginia areas.

Buying A Charlottesville Foreclosure Multiple Offers

Buying A Foreclosure In Charlottesville – How Much Should I Offer

Buying A Charlottesville Foreclosure 

Copyright 2012 by Pam Dent, all rights reserved “Does “As Is” Mean I Can’t Have A Home Inspection?“

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Buying A Charlottesville Foreclosure – Multiple Offers

Buying a foreclosure can offer the opportunity to get a great deal.  These homes are usually listed at a discounted price.  Sometimes the listing may see several price reductions.  However there will come a time with many of these listings when the price will drop to a really good price and then we will see the offers come in.  All of a sudden there are multiple offers.  Many purchasers are not prepared to be in a multiple offer situation.  This video will explain what is meant by your “highest and best offer” and will talk about the process of making an offer on a Charlottesville foreclosure.

Please email me if you would like a list of Charlottesville foreclosures for sale, or bank owned properties in any of the Central Virginia counties.

Buying A Charlottesville Foreclosure – Part 1

Copyright 2012 by Pam Dent all rights reserved “Buying A Charlottesville Foreclosure – Multiple Offers“.

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Buying A Charlottesville Foreclosure – Part 1

Everyone has listened to the news and is familiar with the growing number of foreclosures across the country.  While Charlottesville and Central Virginia do not have as many bank owned properties on the market as are seen in many parts of the country, we do have them.  Because of the possibility to purchase a Charlottesville foreclosure for a very good price, there is a lot of interest in these homes.  We see both investors and buyers looking for a home to live in themselves who are curious about the foreclosure market.

What is the foreclosure market like in the Charlottesville area?  What kind of REO properties do we have in our real estate market and what is involved in purchasing one?

This is the first in a series of videos on Buying A Charlottesville Foreclosure.

Copyright 2011 by Pam Dent, all rights reserved “Buying A Charlottesville Foreclosure – Part 1“.  Written by Pam Dent.

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Buying A Foreclosure In Charlottesville – How Much Should I Offer?

In the current real estate market I am often approached by folks who are interested in purchasing a foreclosure.  Bank owned properties can provide the opportunity to purchase a home at a discounted price.  However people are often surprised at what exactly that price may be.

You have been hearing on tv about the glut of foreclosures.  You know that the banks need to get these homes off their books.  So it makes perfect sense that they would be happy to get anything for the properties just to get rid of them…wrong.  The banks want to get as much as they can for the properties.  They have a figure that they want to get for the home.  The home has been priced according to a brokers price opinion based on market value and condition.  This is usually less than comparable resales that are on the market.  The Charlottesville foreclosure is already discounted and the bank usually will not take 30 cents to the dollar on this discounted price.

When the home comes on the market as a REO it is listed at a price based on a BPO.  If there has not been an acceptable offer, the bank will periodically reduce the price.  When the price of a bank owned home becomes attractive, offers come in.  It is not unusual to end up with multiple offers and we will see the home end up selling for over the list price.

This graph shows the sold to list price ratio of foreclosures in the greater Charlottesville real estate market.  Note that this ratio is based on the sale price as compared to the original list price, not the final reduced price.  You can also see how much lower the REOs are selling for compared with the conventional sales.

As you can see the foreclosures in the Charlottesville real estate market are selling on average for approximately 82 – 88% of  the list price.  Yes, you can make an offer, but don’t expect to be able to get the property at 1/3 of  the list price.  I am not saying that it never happens, but it is not at all the norm.

Copyright by Pam Dent all rights reserved “Buying A Foreclosure In Charlottesville – How Much Should I Offer?“  Written by Pam Dent.

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The March edition of my newletter Charlottesville Virginia Real Estate News is hot off the presses.

You may be interested in reading this issue which deals with the following topics:

• Buying a distressed property, foreclosure or short sale, takes patience.
• Why it is important to verify the information in the public records before putting your home on the market.
• Selling your home – Find out what improvements are cost effective.
• More information for sellers – Spring cleaning for the exterior of your home.
• Make sure you understand disclosure requirements when you are selling your home and avoid a lawsuit later.

Read Charlottesville Virginia Real Estate News.

If you would like to subscribe to the newsletter, email me at pam@pamdent.com and I will put you on the mailing list.

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