Home Buying in Westwood>Question Details

bdunn1975, Home Buyer in Westwood, NJ

What does it mean when a realtor's listing states " the property is in as is condition and the buyer is responsible for all items in order to settle ?

Asked by bdunn1975, Westwood, NJ Sat Dec 15, 2012

This listing is kind of suspicious and I would like to know why a realtor would list a property in this fashion.

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Answers

12
You will see this disclosure in all the foreclosures, short sales, trust sales, bank owned and corporate owned property. It is not suspicious, is part of the real estate transaction to disclosure that they have no knowledge of any problems with the property, because they never live there and will not be responsable for any repairs.

Best of Luck,

Maria Cipollone

Century 21 Tenace

http://www.Flahomespecialist.com
1 vote Thank Flag Link Mon Dec 17, 2012
You usually see this with foreclosures, REO properties and short sales. Basically means if there are any issues with the house, fixtures, appliances, etc, the owner or lender will not replace, repair or credit you any money. On a normal sale of a house, the seller is responsible for the CO and Smoke Certification. However, with REO's, foreclosures and short sales, the BUYER is responsible.
0 votes Thank Flag Link Thu Mar 21, 2013
A Realtor is hired by the seller and has to disclose the property condition. Most distressed sellers do not have the financial means to make necessary repairs to their homes when they have to sell,
0 votes Thank Flag Link Mon Dec 17, 2012
Short sales and foreclosures are usually sold in "As Is" condition with the buyer being responsible for all necessary certifications needed for settlement such as the Fire Inspection & Certificate of Continued Occupancy if required by the local municipality. Check with them. When a property is sold in "As Is" condition it literally means what you see and the condition of all the properties' mechanics whether in working order or not will be sold in that condition. The seller or bank will not make any repairs. This is the norm with short sales and foreclosures but sellers with a standard transaction may also opt to sell their property in this manner. The reason properties are sold this way is because sellers and banks don't want to be bothered with making repairs. So when buying a property in As Is condition you must carefully count your cost for repairs, and acquisition to make sure it's a solid investment. The sales price should be much lower than comparably priced homes to offset your additional costs.
0 votes Thank Flag Link Sun Dec 16, 2012
The seller has stated explicitly they will not invest another nickle into this real estate for any reason.
In some instances, the utilities have been disconnected and the buyer will be required to make arrangements if wanting to complete an inspection. There are a significant number of homes for sale under this condition and with that verbiage. Furthermore, some homes listed in this situation will state that any offer must be free of ANY contingencies. Which means the inspection, if desired, must be competed before submitting the offer to purchase.
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This would not the the recommended situation for a first time home buyer.
An experienced buyer can find real value in such situations.
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Your 'kind of suspicious' feeling is unmerited. This is a valid solution to selling a property that is in a distressed situation. The seller may be broke, They buyer must be able to complete their due diligence. The pre-requisites, as you have read, makes ti real clear.
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Purchasing real estate under such circumstances is NOT SUITABLE FOR EVERYONE. An attempt to attach any additional costs, for whatever reason, to the buyer is highly likely.
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The professional you have hired to represent you will be able to explain in detail the requirements of each statement. Your professional will advise regarding implications if you are financing this purchase.

Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, Fl
727.420.4041
http://RealEstateMadeEZ.us
0 votes Thank Flag Link Sun Dec 16, 2012
I'm seeing a lot of sales where it is not a short sale and they are asking the buyer to get the Certificate of occupancy. If the price is discounted it does not cost much to the certificate of occcupany unless there are any major violation a home inspector or even your realtor can point out if any issues.
0 votes Thank Flag Link Sun Dec 16, 2012
It is likely that there may be issues that need to be dealt with in order to make the propert finance ready. You should ask the listing agent if there is anything he needs to disclose
0 votes Thank Flag Link Sat Dec 15, 2012
You should ask the listing agent. If I wrote something like that, it would be because the seller was not going to do anything to improve the property and if the buyer's lender required work orders, the seller wasn't going to do them.
0 votes Thank Flag Link Sat Dec 15, 2012
Hi BDunn,

There could be many reasons for listing the home this way but the agent has been instructed by the homeowner.
It could be as simple as: "If I put my home on the market for this low price you as my agent are suggesting I will not address inspection results"
Many times Estates are sold in this manner. Relatives of the deceased to not want to outlay cash nor do they want to bother with repairing item.
Maybe they know the furnace is 'on its last leg' and have price the home accordingly.
Have you seen the inside of the home? How long has the home been on market?


Good Luck,
Chris Gubb
0 votes Thank Flag Link Sat Dec 15, 2012
"As-is condition" means the seller will not make any repairs or improvements as a condition of sale.
The phrase that the buyer is responsible for all items in order to settle could mean quite a bit. I'd assume that it definitely included all inspections and included other fees that sellers normally pay at closing.

A Realtor would take such a listing because they believe they can help the homeowner/seller.

Realtors help people. I cannot emphasise that enough.

A Realtor can help you navigate this murky situation. If you are a serious buyer, I'd recommend finding a Realtor you are comfortable with to guide you through this process.

Good luck in your search for a Realtor and a house.
Web Reference: http://www.DiehlHomes.com
0 votes Thank Flag Link Sat Dec 15, 2012
Mr. Diehl,
Thank you for getting back to me on this.This property is part owned by my sister,and a family court judge appointed a court appointed power of attorney to list this property with ex husbands lawyer.The court ordered power of attorney signs off on everything in this real estate transaction and does not even consult with my sister,which I believe is unjust.The property is in foreclosure and Wells Fargo went out per my request and winterized and changed the locks on 12/05/12 only to have ex husband remove the locks and take down Wells Fargo's notices,which I think is a crime,but am unsure of that.
There is a foreclosure complaint filed in the Superior Court of N.J.. as of 11/20/12 but as of yet to be served upon my sister and her ex husband.Can a injunction be filed to stop the actors in this real estate transaction from continuing in this ?
Thanks,
Bill Dunn
201-666-3279
Flag Sat Dec 15, 2012
This is a common enough condition seen on listings especially short sales and foreclosures. . What it means is the owner will not pay for any repairs that are needed as a result of a home inspection. it does not mean the buyer has to continue with the purchase and he can step away from the contract if he considers the repairs to be too expensive.
. FYI all real estate transactions in New Jersey are conducted on an "As Is" basis except for new construction. In other words there is no legal obligation for the owner to fix things prior to sale.
The second part means that the buyer is required to obtain the certificate of continued occupancy that most towns require to be issued before the sale takes place. This normally the responsibility of the seller but if there are no funds available for payment - as in the case of a short sale, foreclosure or sometimes an estate sale - then they may stipulate that the buyer is responsible. This is a little trickier as there may have been work done on the house for which permits were not opened or permits that were not signed off on which is a violation of the building code.
However the potential buyer can approach the building department of the town and they will tell you if there are any possible violations
0 votes Thank Flag Link Sat Dec 15, 2012
Mr. Rogers,
Thank you for the reply back to this question.This property is part owned by my sister and the family court appointed a court ordered power of attorney to list this property with the ex husbands lawyer. The property is in foreclosure with no foreclosure sale date as of yet and the court appointed P.O.A. does all the signing on this real estate transaction without even consulting my sister,which is unjust in my opinion.Can I get and file an civil injunction against the actors in this real estate transaction to prevent the real estate deal like this from going on ?
Bill Dunn
201-666-3279
Flag Sat Dec 15, 2012
Is the property a short sale? In order to get an FHA loan, the property hs to meet FHA guidelines. If the property needs repairs and is a short sale,the home owner probably is not in a position to spend any money on the property to bring it up to FHA standards. Of course without knowing all the facts, I am mearly speculating but this senario is something I see on a daily basis, so. . . .

Fred Yancy, Broker
Crye-Leike Realtors
(678) 799-4663
0 votes Thank Flag Link Sat Dec 15, 2012
Mr. Yancy,
Thank You for your reply,I am inquiring about this situation on behalf of my sister,who in this matter is part owner of this condo but a family court judge ordered a court appointed power of attorney to list this property which now is in foreclosure status with no foreclosure sale date as of yet.Her ex husband's lawyer is running the show on this deal of which is unfair and the court ordered P.O.A. signs everything on behalf of my sister without consulting her.I would like to get an injunction to stop this P.O.A. from acting and stop this real estate transaction.Any ideas.Thank you for your time
Bill Dunn
201-666-3279
Flag Sat Dec 15, 2012
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