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Get an inspection before signing the "As is". Don't sign an "As is" until you've had the isnpection because signing the "as is" is stating that You accept the property and all it's flaws and the bank/owner are not required to fix them prior to sale, it's going to be all on you. So you need to have the inspection to make sure there are no really serious issues that would make this a huge mistake, bad deal, whatever. If there are issues that you are not willing to accept, attempt to renegotiate. I've had several closings cancelled by the buyer after an inspection was done because the property turned out to be in worse shape than originally thought. I only handle properties that have major title issues, etc. and more than likely, the bank/seller has never set foot on the property they are selling. Do whats best for you, get it inspected before signing the "As is".
<---- REO Closing Agent
I think this is bad advice. Until you have an executed contract you have no rights to the property. You don't have the right to inspect the property without the seller's authorization which is why we have inspection clauses. I see no reason for a buyer to shell out $400 for a home inspection if they don't have the rights to buy the property. Let's say the inspection goes fine, but wait...someone else executes a contract with the bank in the meantime...your buyer just wasted $400. Why would anyone recommend that?
That is what the agent is for...to help the buyer deal with the consequences of the home inspection. It might be the buyer walk; it might be that we renegotiate the price to compensate; it might be that we try to negotiate a repair that will impact lending; or the buyer accepts it as-is.
I think this is bad advice. Until you have an executed contract you have no rights to the property. You don't have the right to inspect the property without the seller's authorization which is why we have inspection clauses. I see no reason for a buyer to shell out $400 for a home inspection if they don't have the rights to buy the property. Let's say the inspection goes fine, but wait...someone else executes a contract with the bank in the meantime...your buyer just wasted $400. Why would anyone recommend that?
That is what the agent is for...to help the buyer deal with the consequences of the home inspection. It might be the buyer walk; it might be that we renegotiate the price to compensate; it might be that we try to negotiate a repair that will impact lending; or the buyer accepts it as-is.
I made no such recommendation. My post was made with the assumption a purchase agreement was in place. Why would anyone in their right mind shell out money for an inspection if there was no contract in place? That's like buying new tires for a used car you are thinking about purchasing. The question was in regards to an "As Is" affidavit and inspection. You wouldn't sign an "As is" prior to having a contract in place, so the assumption was made that if there was one in place, you would most certainly get an inspection done prior to signing the "As is".
I made no such recommendation. My post was made with the assumption a purchase agreement was in place. Why would anyone in their right mind shell out money for an inspection if there was no contract in place? That's like buying new tires for a used car you are thinking about purchasing. The question was in regards to an "As Is" affidavit and inspection. You wouldn't sign an "As is" prior to having a contract in place, so the assumption was made that if there was one in place, you would most certainly get an inspection done prior to signing the "As is".
The as-is clause is part of the bank addendum. If you don't sign it you don't have an executed contract. My advice still stands. Your advice was erroneous. Buyers need to have a fully executed contract, which in the case of the bank, will have the as-is clause in the contract. I think it is bad advice to do a home inspection before having an executed contract.
I agree completely with Silverfall. An as-is clause is included in purchase contracts with bank sales. Most of these contracts also include the right to inspect and cancel during the inspection phase. Read the addendum carefully before signing as they vary from lender to lender.
As one who is involved in the review of REO offers, I can tell you that our motivation is to dispose of properties for as much as we can get, as quickly as we can. We need to practice "loss mitigation"
We receive many different types of offers, and consider them all.
As far as some repairs being negotiated, I have seen it happen with REO's, but usually as a reduction in price.
Yes... the listing agent in my case agreed to pay for the VERY necessary repairs .. My agent even mentioned he would pay if the listing agent did not.. the bank however - could care less.
That's ridiculous. "As is" is the bank's contract, it has nothing to do with you - get an inspection, asap . . . the banks tighten up the contingency periods but you have a right to get an inspection and you should.
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.. My agent even mentioned he would pay if the listing agent did not.. the bank however - could care less.
