When buying a bank owned property, can we expect any negotiation on repairs?

Asked by oregon, 97526 Wed May 5, 2010

We're buying a property that has reverted to the lender. Do they always sell "as is", or can we hope for some negotiation re: repairs.

Help the community by answering this question:

+ web reference
Web reference:

Answers

9
Anna M Brocco, Agent, Williston Park, NY
Wed May 5, 2010
What is your agent advising--Unfortunately bank owned properties are generally always sold as is, and keep in mind that banks are looking to get as much money back as possible--are you aware of recently closed similar properties in the immediate area, if so what does the data suggest as to a fair price--is the property priced on target for today's market or slightly below--if so multiple bids may come to play--your agent can best advise you, if the repairs are extensive, you may give an offer that reflect those repairs, but if there are other players involved you may lose out to a stronger bid.
1 vote
Jose Smith Jr, Agent, Long Beach, CA
Wed Aug 25, 2010
There are quite a few banks that say "as is". However, there are rare moments when you can get them to do minimal repairs. Remember, all Real Estate is local. This is the norm in my area I serve.
0 votes
Kathleen Puc…, , Grants Pass, OR
Wed Aug 25, 2010
Dear Oregon bank owned properties have very little negotiating room for most things. They do however address items that are not to code, some lender required repairs and most items that are an issue with regard to health and safety, for example mold eradication. Your Broker should due their due diligence, review the historical docs on the property, and write an offer that requests health and safety issues, and code issues for you in your offer. Honestly the general repair catagory is a "crap-shoot" because of the property being sold as is. If you have additional questions I want to encourage you to please list your questions and ask your broker or his/her principal for more information. Best of luck!
0 votes
Sharon Vest, Agent, Grants Pass, OR
Sat Jun 26, 2010
Normally anything to do with health and safety issues are repaired and most "code compliant" issues too. REO's are negotiable in purchase price and terms just as any other property for sale but each bank has it's own policies. I suggest that buyers make their offer as simple as can be. If you are asking for seller concessions on an REO be specific and do it in terms such as "seller to pay $xxxx of buyer's closing costs" instead of "seller to pay xx% of buyer's closing" or "seller to pay $xxxx toward a new roof" instead of "Seller to replace roof". They want to look at the bottom line and the less figuring they have to do the better!

Beware of older homes, REO or others, that have that just painted and carpeted look because unless you know what is under that cosmetic redo you could be buying something with a covered up problem.
0 votes
Lana Lavenba…, Agent, Grants Pass, OR
Thu May 6, 2010
It never hurts to ask. The worst thing to so though is to write an offer that is low then to ask for buyers loan costs and repairs in the offer. If you want the bank to negotiate repairs - then you need to be realistic with your offer.
0 votes
Chris Barnett…, Agent, Grants Pass, OR
Thu May 6, 2010
Depends on how the offer is written. Cash is different than most buyers loans. Negotiations are always open and if we can bring buyer and seller to come to a compromise, we try to make that work always. The worst that could happen is the seller says no. We are here to help. Search all homes on our website.
0 votes
Larry Harbol…, , Grants Pass, OR
Thu May 6, 2010
I have found that some repairs are allowed if they are brought up in the appraisal. Typically having to do with termite and dry rot damages.
However, it depends on the bank/ lender that owns the property more then the repairs, in most cases.
Web Reference:  http://www.exitrtc.com
0 votes
The Stephen…, Agent, Portland, OR
Thu May 6, 2010
Usually no. I've found the only time they have been willing to do repairs is if they advertised the property as loanable and something comes up that is so bad on the property it makes it a cash deal - even then - sometimes they won't.
0 votes
Kenneth Will…, , Torrington, CT
Wed May 5, 2010
There is no always. There can be some, but not much. It doesn't hurt to ask, but I wouldn't get your hopes up. Have you considered a FHA 203K loan? It's a good alternative to help pay for the costs of repairs.
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more