Short Sales house : Why to look for interms of disclosures ?

Asked by Andy, Santa Clara, CA Wed Apr 9, 2008

How do I make sure that the disclosures does have a major issue that has not been fixed. 1) Should we have a house inspector inspect the house before we write in the offer 2 ) Should would also inspect for Pest/Mould etc before we write in the offer ? or does these two things happen after we the bank accept the offer.

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Meena Gujral, Agent, Pleasanton, CA
Wed Apr 9, 2008
Hi Andy,

You should give an offer first. After the offer has been accepted (which could take 30-60 days for lenders to respond), you then have time to get inspections done. So in other words the timeline starts after the lenders acceptance of your offer.

If you get inspections done before writing the offer, you may not even get an offer accepted by the lender and you will be spending money on a home that you will not be buying. so wait to hear and then proceed.

If I can help in any way, please call me at 510-279-9580

Meena Gujral
Help-U-Sell Achievers Realty
40083 Miision Blvd
Fremont, CA 94539
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Andrea Davis, , Fremont, CA
Wed Apr 9, 2008

Great questions, but it doesn't sound as though you are working with a Realtor to help you through the process.

There is a lot of information and due diligence which needs to go into buying either a Short Sale or REO (bank owned property). On Short Sale, you need to know if the NOD has been filed and when? You need to know who the Mortgages are with - which lender will be involved in approval. Has the Short Sale package by the seller been submitted and approved?

Assuming you have all these questions answered, and that you still have an interest in the property you would then structure your offer to reflect not only what you would hope to pay for the home but after a thorough evaluation of the Comps in the area. Once your offer is submitted, and based upon if there are any other offers also being looked at you might want to give some consideration to inspections.

Inspections are ALWAYS at the discretion of the Buyer. And in a Short Sale or REO property you will likely be the person paying for them regardless if you buy the house or not. Given the fact the seller is upside down on the loan the chances they will or can pay for inspections isn't likely.

And NO pest and mold are not over lapping or necessarily evident on one repor, however PEST should never be over looked and for many buyers they would also same the same of Mold. In any case it should by the buyers decision and following an informative conversation with your Realtor.

Andy, I realize many people feel as though Realtors are over paid for what they do, but in truth in a market where Declining Values, Short Sales and REO's are mainstream a buyer would be ill advised to not work closely with an Agent.

I hope you will give me a call, but in any case I wish you the very best and success with your Home Shopping.

Andrea Davis
(925) 824-4801
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