07/24/2010

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As-Is - Foreclosure (REO) Homes - Red Flag? Everyone is looking for a deal in the current housing market. They have all heard the stories of rock bottom pricing on the bank owned foreclosure (REO) properties. There one thing that usually holds them back from at least entertaining the thought of buying a foreclosure. "Property being sold As-Is" - Does this raise a red flag with you? For some buyers this says to them "I am hiding something- something that will cost you a LOT of money". Even if the home is hiding something, and very well could be- this is no different than any other conventional property on the market. Buyers have been lead to believe that with the As-Is condition, there is no chance for inspections. This is a falsity, the inspection period is still in the contract. For your protection you should inspect, and investigate the home just as you would a conventional property. With proper inspections the element of surprise has now disappeared, and you are knowledgeable about the property. The As-Is condition does remove the warranted items in the contract, gives no guarantee for the zoning, and fitness for use of the property - but again the inspection process give you time to investigate your investment. So what happens if a material concern pops up on the home inspection. Well just as a conventional sale you have options. Your first option is to ask for the repairs to be completed by the bank. This is a long shot, but in some cases depending on the banks bottom line they will complete the repairs. Your second option is to take the property knowing of the issues, and correct them yourself. The third option is to walk, WITH your earnest money. There are many differences between a bank owned foreclosure (REO) and a conventional sale. You wan to find an agent that can address all of these concerns and make sure you are protected and informed of the process. That being said the As-Is condition is not as bad as the myths we have all heard in the past! You can start searching Tucson/Oro Valley foreclosures below.

The Property Aces

We are a team of REALTORS® in the Tucson Arizona and surrounding area.

The TypePad Team

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