Josieburden9, Home Buyer in 48063

bank owned "as is" home HELP!

Asked by Josieburden9, 48063 Tue Nov 8, 2011

me and my husband have looked at a bank owned "as is" home. all seemed well until the basement. There was a make-shift dry wall room in the basement. the dry wall was cut about 1 foot from the ground (guessing it flooded) and the dry wall was covered with mold. my husband brushed his hand acrossed it and it wiped right off . IF we put an offer on this home can we have a mold inspector come out to see what kind of mold we are dealing with and how to clean the mess up... and if we dont like what we hear to back out on our offer? or no because its an "AS IS" home? PLEASE HELP!

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Ron Thomas, Agent, Fresno, CA
Tue Nov 8, 2011
A lot of homeowners are angry at Investors becuase they are snapping up a lot of good possibles:

This would be a good example;
They would by this, for CASH, and AS-IS, realizing that they had to do MOLD work.

If you aren't ready to tackle this, then you probably aren't going to get it: The Bank will not play games with you over the repairs needed or repair Contingencies.

You need to decide.

Good luck and may God bless
0 votes
Don Tepper, Agent, Burke, VA
Tue Nov 8, 2011
What's your Realtor advising?

Beyond that, even a home that's being sold "as is" can have its purchase subject to a home inspection. Investors do that all the time. They'll offer to buy a home "as is" but then have it inspected. If the inspection turns up problems the investors hadn't seen, then the investors invoke the home inspection contingency to get out of the deal.

Recognize that any contingency weakens your offer. If the bank receives two offers--one yours and another one identical except that there's no inspection contingency--that other offer is likely to get the house.Still, in this case, you need a home inspection. You really should have one any time you buy a house.

And you really are facing two questions. The first is: What caused the flooding? Was it a one-time event (such as a burst pipe)? Or is it something that recurs? If it does happen periodically, is it an easy fix? (Maybe outside regrading. May a sump pump. Maybe a French drain.) Or is the fix difficult or impossible? A home inspector probably can answer those questions. If it's something structural--such as a crack in the foundation--then you'd probably need someone like a structural engineer. (And at that point, you might just want to terminate the transaction.)

The second question is: What will it cost to clean up the problem? How extensive will the mold remediation be?

Your Realtor probably has advised you to make an offer contingent on a home inspection. And to make the offer low enough to account for the remediation and repairs. That's what I'd suggest.

One bright spot: Mold scares off lots of buyers. But mold and its underlying cause can be addressed. You just have to know how much it'll cost, and factor that into your offer.

But the main point is: Yes, you can buy a home "as is" subject to a home inspection.

Hope that helps.
0 votes
Josieburden9, Home Buyer, 48063
Tue Nov 8, 2011
yes i am working with a realtor. I just wanted some others input. I am a first time home buyer things can get over whelming!
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BG, Home Buyer, Phoenix, AZ
Tue Nov 8, 2011
when in doubt , put the language in the contract , some thing like this "Buyers reserved the right to cancel contract for (whatever reasons concerned you) without incurring any costs and received a full refund of deposit 1 week after cancellation , with or without Seller release".

And let see what AGENTS have to say :)
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Sally Grenier, Agent, Boulder, CO
Tue Nov 8, 2011
First of all, are you working with a REALTOR? If not, you need to be. These transactions can be tricky, and you want someone working for you as a Buyer's Agent. If you are, then you should be contacting him/her with these questions and they can guide you through this process.

Just because it says "as-is" doesn't mean you can't back out of the contract. It just means that the bank isn't willing to do anything to fix the problems.
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