Foreclosure in Brockton>Question Details

Grace, Home Buyer in Brockton, MA

Submitting an offer on a foreclosed property

Asked by Grace, Brockton, MA Wed Apr 15, 2009

I am interested in a foreclosed property and recently submitted an offer. I have been advised that I should not go through with the purchase because it is an "as is" sale. What is the difference between an "as is" sale and a regular sale?

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"as is" means the bank will not fix or pay to fix or be liable for any issues with the home. If the house has been left in poor condition they will not hold any liabilities for the problems so you will have to buy it in the "As Is" condition. They will also not disclose any issues about the property because the bank never lived in the property so this means they are selling it to you in whatever condition you find it.You should do a lot of research online about buying foreclosed properties before you decide to purchase one. There is plenty of information available.
In a "regular" sale you are negotiating with the person(s) who lived in the property and often they will adjust the purchase prices based on or take liability for the condition of the property.

If you are being advised not to buy the property it may mean the condition isn't good which could make it impossible to get financing.

Good luck!
0 votes Thank Flag Link Thu Apr 16, 2009
In this state it basically means that all the liability for the property is passed over to the buyer. The home is being sold "as is" in whatever condition the property is in. Make sure you have the home inspected by a qualified & licenced home inspector, structural engineer, environmental testing company, contractors etc. to give you the best idea of the exact condition of the property.

This has become commonplace with bank owned property as well as short sale properties where the sellers may not have the funds to remedy any problems. This is typically why the properties are marketed at such attractive prices. There may be some problems which you might feel comfortable in repairing, others not. You could be potentially taking on a big job, or none at all. This is why a thorough home inspection is vital.

In these types of situations I usually recommend to have at least a home inspection prior to even making an offer so you can make the most informed offer you can. There may be no re-negotiations after an offer is accepted. Yes it will cost you several hundred dollars but can save you thousands if you discover major issues that may not be readily aparent to the untrained eye.

Good luck in your home search, check back and let us know how you make out, just proceed cautiously and seeking the advice of professionals is highly recommended.
0 votes Thank Flag Link Wed Apr 15, 2009
As is meaning in its current condition without any repairs. Did you do a home inspection on the property? There can be bad problems which are not always seen with the untrained eye.



Sean Dawes
Long and Foster Real Estate
Web Reference: http://www.SeanDawes.com
0 votes Thank Flag Link Wed Apr 15, 2009
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