I recently helped a buyer client purchase a bank owned foreclosure property. Our initial full asking price offer (which was about 60% below the original listing price) was rejected because of a competing offer. A week or two later, the bank's agent called me and asked me if my client would resubmit their offer as the first buyer had backed out of the transaction. The house had been languishing on the market for about 2 years.
We sat down and crafted a new offer, about $25,000 (over 10%) LESS than their original offer with all "standard" contingencies including home inspection, well, septic, mortgage, and so on. Not only did the bank accept the offer, they countered with things we didn't even ask for. They offered to pay for all the inspections, they even offered a $1000 bonus to the buyer's agent. (Made me happy). The bank was pretty motivated to get the deal done. Turns out, no major repairs were required. The buyer was more willing to remove the contingencies after the inspections due to the willingness of the seller to make concessions up front. I stopped by to see the new home owners over the weekend and their still very happy with the way things turned out.
So, just because a seller (any seller) states in the listing what they will and won't do, don't be afraid to ask for anything and everything. Negotiations between the parties will shake out concessions that will fly and those that won't. This particular transaction worked out quite nicely for everyone involved.
I hope that's helpful. Good luck.
RE/Max Professional Realty
Office: (610) 363-8444
Mobile: (484) 948-0936
When you buy a foreclosure, you're buying it "as is." Take it or leave it.
However, you certainly can do a home inspection and make the offer contingent on an inspection. The home inspection will (hopefully) identify major problems and allow you to decide whether you want to buy it in "as is" condition.
So, you see a property. You make an offer, knowing that the bank will only sell it to you in "as is" condition. You base your offer on the comps, but factor in a reasonable amount of discount for problems that might be uncovered during an inspection. Sometimes they're easier to identify than others. If your offer is accepted, you have the home inspection done to verify the amount of needed repairs. If the numbers still work after the inspection, you go ahead. If they don't, then you exercise that contingency and drop the property.
Check with your Realtor for more information.
Hope that helps.