As all the agents have pointed out below, a solid home inspection with an ASHI certified inspector is a must, as is a complete WDO (wood destroying organism) inspection.
There are two timeframes for inspections with short sales: either your timeframes for inspections started when the SELLER, which would have been roughly 10 days from date of acceptance, OR, the timeframes for inspection run from when BANK approves the short sale, in which case, they are still possible.
As mentioned above, if the property is still seller owned, and a short sale, then the property does not yet belong to the bank. If, however, you opted to purchase a foreclosure, your timeframes started with the effective date of acceptance.
I strongly recommend you have a talk with your Realtor to gain a better understanding of your inspection rights, timeframes, and results ASAP. If you are not working with a Realtor, you may want to revisit the inspection results with your respective inspectors to get their input and/or their recommendations for contractors to help fix the issues.
Additionally, if you are military, which you may be as you state NAS, you may have on-base resources to help you with this situation.
Both short sales, and foreclosures/bank owned properties typically convey/sell in "As Is" condition that the seller will make any repairs, making the inspection timeframes very important.
Good luck and if I can help, please let me know.
Prudential Network Realty
While a home inspector can point out the deficiancies and needed repairs, he cannot tell you an accurate cost rehabilitate the house. I suggest having two, or more, fully licensed contractors inspect and review the property and submit bids to make the repairs. The cost is the key issue to you in this decision.
Either way, you MUST get an inspection to verify you're not buying a property that has serious issues, like a sinkhole beneath it!
Most importantly when paying ALL CASH is that you MUST hire an attorney to review the title insurance policy and any closing documents. It shouldn't cost too much for the review and the title company doing the closing can email all of those documents to the attorney before you sign at closing.
Good luck on your adventure with fixing up this house.
All my best,
Coldwell Banker Vanguard
When buying any short sale you are buying in " AS IS with right to inspect" Which mean the seller isn't going to make any repairs but you have the right to walk away after your inspection period for any reason: Your inspection period normally begins as soon as you receive the approval letter from the Third party(the bank). It is common place to re-negotiate with the bank after your inspection if you uncovered items that clearly affect the marketablity of the property. If your inspection period hasn't ended I would go back to the bank with photos of the damage and tell them that you are going to walk unless they will reduce the agreed upon price.
On the other hand did the appraisor take into account all of the damage? Was the appraisal done by an appraisor or was it a BPO done by an agent? In most cases the appraisor will make price adjustments for the damage and discount the property . If you have a copy of the appraisal you will see the adjustments made to the properties that are being compared to the one your buying.
You can possibly finance using a construction loan. Why did the bank decline to lend? Did the appraised value after construction not match the cost to buy and repair.
i do FHA203K loans, as well as conventional construction lending, and have many reputable contractors I work with. Feel free to contact me - I am willing to answer any questions you have.
Did you hire a licensed home inspector? That may be your best bet, so that you know what condition the house in truly in. I can recommend several ASHI home inspectors in the Jacksonville area. You can reach me at 904-343-8586.
Lynn Brier-De La Cruz, REALTOR, LMC
Coldwell Banker Vanguard Realty