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Seeking In A…, Other/Just Looking in Aventura, FL

Does REO "sold as is" an automatic red flag of major isues with the place or is it the length of the posting?

Asked by Seeking In Aventura, Aventura, FL Sun Jul 26, 2009

Every Aventura condo I found attractive in price are all REO and has "sold as is" statement. There is usually little other relevant information on those ads including sq footage or HOA fees. I don't want to waste anyone time if the HOA fees are higher than the mortgage since I would never even consider because I currently live in Aventura in a furnished 900 sq ft place with gorgeous views of the water plus golf course with lots of nice ammenties for just $850. If I do find properties that "works" financially for me, I do not wish to pay repeatly for home inspections to find out these "bargains" have major issues which is why they still on the market. Are the agents suppose to disclose problems especially if they had another buyer that pass on it after inspection or if they are aware of issues?

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Agents are obligated to disclose known defects or problems with any real estate property, irrespective of them being the listing or buying agent. But that said, REOs are in a situation that the owners have no knowledge of the property and the Real Estate Agent, would only know what they themselves have seen. I would always have an inspection done, as there are always things that are unknown with REOs.
0 votes Thank Flag Link Fri Aug 1, 2014
Hello

As-Is does not mean that the property has major damage,
All it means is that since the sellers never occupied the unit (in most cases)
they don't want to be held responsible for not disclosing damages.

Even in cases where the unit is in perfect condition you would still see the "As-Is" clause.

So in short, if you don't feel comfortable with an "As-Is" purchase, look for regular sales.

If you ever need more details on any unit in the Aventura area, please feel free to contact me

via Email at: mosheCGR@gmail.com or call our office at 954.455.5556
0 votes Thank Flag Link Fri May 11, 2012
Most of the contracts REOs or not are "As-Is".
Flag Wed Aug 20, 2014
thanks, Joan. That was a good article for someone that are not familar with REO. It's very helpful and does answer a lot of my questions. Guess now I'll have to find the right agent that experience with REO to represent me.
0 votes Thank Flag Link Mon Jul 27, 2009
Carl Medford has a blog on this website which addresses exactly what to expect with an REO purchase. It is excellently done and easy to read. It is worth looking up because it answers almost all questions you may have, and he somehow manages to make it entertaining as well.
0 votes Thank Flag Link Mon Jul 27, 2009
Thank you all for your responses. To elaborate on above, I was looking for a new place 4-5 month ago because my landlord was foreclosed on. I saw a rental ad for a listing in the same building I'm living in now and responded. The agent show me a newly renovated apartment for $1000 and she said it was just lowered from $1300 since it was on the market for a few months. Very soon afterward, I saw the same apartment listed on Craig' list as a REO. It was listed for ~$71-75K. I am still shock considering how nice it look and for that low price it's still not sold. I'm assuming there maybe major issues with the apartment. I saw a lot of ads in the same and neighboring buildngs and they'e significantly higher ~$90-130K but none were renovated or as nice and most are about the same sq footage with similar building amenities.
0 votes Thank Flag Link Mon Jul 27, 2009
sold as it basically means the banks will not pay for repairs.

Your agent should ask the listing agent before the offer is presented if any inspections have been done prior.
Web Reference: http://reoagogo.com
0 votes Thank Flag Link Sun Jul 26, 2009
Cindi Hagley, Real Estate Pro in San Ramon, CA
MVP'08
Contact
Seeking:

Typically, the phrase "sold as is" is the standard- boiler plate disclaimer for bank owned properties. The bank has never lived in the unit and really has no idea of its condition. I'm not sure what is meant by "length of the posting"- so I'll leave that issue alone. The maintenance fee for those Aventura REO's are between $550 and $675 per month and the annual taxes will be adjusted to about 2% of assessed value.

So, the property taxes and monthly condo association dues will be roughly $900 per month- most of these REO's can not be bank financed- for several reasons; they require an all cash purchase. "Smart Money" seems to be buying these distressed condominiums- they sold for around $335-$400K just 2-3 years ago- the potential for appreciation seems to be a real possibility.

An agent legally is bound to disclose material defects that are known or readily observeable.

Mott Marvin Kornicki, Real Estate Broker
http://waterwayrealty.sef.mlxchange.com
WaterwayRealty@GMail.com

http://www.parccentralaventura.com
0 votes Thank Flag Link Sun Jul 26, 2009
Hi,
REO means the bank owns the unit, the "as is" means they will make no repairs or improvements to the property. They are probably getting 50 cents on the dollar with the foreclsoure, so they make no other contributions. You will have an inspections perriod to get out. That is the ony way REO's will ever sell. If you are looking at newer units there are generally no major issues, as the building takes care of the plumbing and major issues within the structure.

If you are currently paying 850/month I do not feel you will ever find anything to own that will as low as that, unless you pay cash and just have your maitnnance fee and taxes. I would need much more information as to your pirce range and financing, but to answer you disclsoure question, there will always be full disclosure of any known defects, it is the law. "As is" does not mean will not disclose, it means will not repair. And a realtor cannot by law take on the liabiliy of telling you what is "wrong" with the property, it has to be inspected for an official disclsoure. They are not withoholding anything that is visible to all, just defects that could be found upon inspection.

You cannot have the expectation of an REO or short slae being in move in condition. You may be getting the deal of a lifetime price wise, and it may need work. That is a deciosion you need to make yourself as a buyer. You may just want to buy a really well priced "normal" sale and have it be in better condtioion. Sometimes the difference in price is very negligable from an REO.
I have seen REO's and short sales that look horrible, but much of it is cosmetic.

If I can assist you further feel free to contact me directly,

Beth Jenkins
South Florida Brokers
786-374-4778
Web Reference: http://www.arealtyteam.com
0 votes Thank Flag Link Sun Jul 26, 2009
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