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Steve, Home Buyer in Massachusetts

A REO property I am interested in has had two offers to buy fall through during inspection. Is the listing?

Asked by Steve, Massachusetts Wed Feb 11, 2009

agent under any obligation to tell us why those deals were rescinded?

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Answers

5
Hello Steve,

There is a tendency in today’s market for buyers to walk out of a transaction and the home to go back on the market. There are many reasons why a buyer may choose to cancel a transaction. If you are concerned there was an issue with the inspections, you may ask the listing agent if he or she had knowledge of any issues. The listing agents should disclose any condition they have knowledge about.

With the bank-owned homes and short sales as- is sales, buyers are accepting properties that need cosmetic repairs. The best thing a buyer can do is have their own inspections to be aware of the condition of the home they are buying. Check with your financing because some loans require the home to be in repaired condition.

Thanks,
Carol Perdew
Prudential California Realty
(209) 239-7979 - Carol@PerdewHomes.com
http://www.CentralValleyHomes.com
DRE 985176
0 votes Thank Flag Link Mon Nov 7, 2011
Typically I am finding that the listing agent has no knowledge of the condition even after the inspection. If the buyer has there own agent, that agent would or should be there for the inspections and they are not obligated to share the inspection report with other potential buyers.

I hope this helps some. REO's can be tough, yet sometimes rewarding.
0 votes Thank Flag Link Mon Nov 7, 2011
Hello Steve- You're seeing more and more of this as more people are looking at and making offers on REO properties.
Keep in mind that if a home is not currently habitable, one of the only mortgages that will work to buy it is a FHA 203k mortgage. This is especially true if it is a HUD-owned home.
During the inspection, many buyers don't realize that the seller (bank, etc) will normally do NOTHING to help you or your inspector out. You will need to pay to dewinterize, and then rewinterize. You will also need to pay to turn on utilities so that all of that can be inspected as well. A lot of this doesn't get done and the inspector cannot inspect properly, and the buyer ends up backing out per an unsatisfactory/ incomplete inspection.
If you need any help with going thru this, especially with the financing end of things, please let me know.
Thanks, and good luck,
Ken L.
0 votes Thank Flag Link Fri Feb 13, 2009
An agent cannot knowingly hide a serious or structural defect.
0 votes Thank Flag Link Wed Feb 11, 2009
If there is a serious defect in the property, then yes they have to disclose the defect.
You can always ask about it, as it's a legitimate concern. They don't, however, have to show you the inspection report or specific details of the property, unless they consent from the seller.

hth
Erica
0 votes Thank Flag Link Wed Feb 11, 2009
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