Home Buying in Branford>Question Details

Rowena Feliz, Home Buyer in 06525

When a foreclosure / bank-owned property is offered on "AS IS, WHERE IS" basis, can offer still include a provision that it is subject to?

Asked by Rowena Feliz, 06525 Wed Apr 21, 2010

inspection? Should I have the property inspected first before I make an offer? Is a contractor who will estimate cost of renovation in a position to know the structural issues to the property?

Help the community by answering this question:


Different banks, like any homeowner, will have different criteria when deciding on an offer. In general, the banks want as easy a transaction as possible - they want the most money, but also the least amount of problems. Ideally, a bank will get a quick closing with no contingencies for problems found during the home inspection. Some banks would prefer no home inspection were done - there is a reason banks sell homes at a discount compared with a traditional sale from one homeowner to another for a comparable property.

I'm a real estate agent on the shoreline and I am very familiar with the foreclosure process. I worked in bankruptcy and foreclosure law before I started selling homes. My own home is a foreclosure we purchased last year. We DID have an inspection, but we knew at the time that the inspection was only for our own information - the bank made it clear they were not fixing anything before we purchased the home.

If you have an agent, you should be discussing these matters with them ASAP:
-What is your budget?
-Is this your first home?
-Do you have experience doing major repairs?
-Do you have finances to cover major problems that may come up such as replacing a furnace or tiling a roof?
*What is the worst that can happen here?

Be very careful - what may seem like a good deal today may end up costing you more out of pocket if you purchase a home that needs more repairs than you can afford to fix.

So, if the house seems like a good value, write up an offer that works for you. Before you write that offer, you need to estimate repairs, review your budget and savings, and be confident in your decision. If you have any questions, I'm happy to help.


Shoreline Property Partners
Page Taft Real Estate
203-815-9118 (mobile)
0 votes Thank Flag Link Wed Apr 21, 2010
I would not spend the money on the inspection until I knew my offer was accepted. So put the offer in and if accepted do the inspection and if you don't like the findings you can cancel.
0 votes Thank Flag Link Wed Apr 21, 2010
Of course, you can make your Offer "subject To satisfactory inspection". The Bank however will seldom make any allowances for defects you and your inspector(s) uncover as a result. If you suspect structural issues, you should arrange for an appropriate "structural professional" to view the property in addition to a competent home inspector. Good luck with your search for a great buy!
Web Reference: http://Tom.MiHomesNow.com
0 votes Thank Flag Link Wed Apr 21, 2010
Make sure the real estate contracts are subject to inspections, and go over the time frame of how long you have to do the inpections. Check and see also that your depost if fully refundable for any reason during the inspection period. This should all be spelled out in the contracts. A realtor can help you navigate these waters. Depending on what type of contractor you hire will determine if the contractors are qualifed to give structural advise. And most contractors will give the estimated cost but can never be certain until they "tear" into the job. Often we will get several bids inorder to get an accurate picture of what it potentially could cost.
Hope that helps,
Laura Reilly- Foreclosure “INVEST”igator USA
“I have a problem with too much money. I can't reinvest it fast enough” Robert Kiyosaki
0 votes Thank Flag Link Wed Apr 21, 2010
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