U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 04-13-2009, 11:59 AM
 
Location: Nassau, Long Island, NY
16,408 posts, read 30,375,729 times
Reputation: 7283

Advertisements

I know a couple that is looking to buy their first home. They are naturally looking for a starter and since the husband is very handy, they are willing to put in more sweat equity than most people can in order to buy at a reasonable price. On a listing that interests them the following phrases appear:

This Property Is Corporate Owned And Sold In Current Condition. No Repairs, Warranties, Disclosures Or Inspections Provided By The Seller. Your Proof Of Funds Or A Prequalification Letter Must Accompany All Offers. A Special Addendum Will Be Made A Part Of The Final Contracts. Buyer To Pay Transfer Tax.

Now does this mean what I think it does? That they buyer cannot inspect the property? Also regarding "no disclosures" it is the law (in this state anyway) that the seller fill out a form making disclosures or give the buyer a credit. I am sure the place is a wreck and I am sure the husband can handle it, but only if the place is actually safe to live in and hasn't been condemned or something. He is not looking for a teardown by any means!

Regarding a "Special Addendum" as part of the final contract, do any of you know what kind of special addendum they are talking about?

And finally, does anyone have experience purchasing a home this way? Would you recommend this type of transaction or pass on it?

TIA!
Rate this post positively Reply With Quote Quick reply to this message

 
Old 04-13-2009, 12:17 PM
 
982 posts, read 935,930 times
Reputation: 249
I am only going to comment on one thing. You can always get an inspection and pay for it as the buyer. I read that as THEY (the seller) aren't going to provide you with one and if you have one and it finds X, Y, and Z that they aren't going to fix it anyway.

But you'd still want one just so you know what you're buying. It will let you know if the roof is bad, the foundation is cracked, etc. By having the inspection, you can pretty much figure out how much it's going to cost you to get it to the condition you consider is acceptable.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-13-2009, 12:46 PM
 
Location: Martinsville, NJ
6,162 posts, read 11,851,613 times
Reputation: 3971
Quote:
Originally Posted by I_Love_LI_but View Post
I know a couple that is looking to buy their first home. They are naturally looking for a starter and since the husband is very handy, they are willing to put in more sweat equity than most people can in order to buy at a reasonable price. On a listing that interests them the following phrases appear:

This Property Is Corporate Owned And Sold In Current Condition. No Repairs, Warranties, Disclosures Or Inspections Provided By The Seller. Your Proof Of Funds Or A Prequalification Letter Must Accompany All Offers. A Special Addendum Will Be Made A Part Of The Final Contracts. Buyer To Pay Transfer Tax.

Now does this mean what I think it does? That they buyer cannot inspect the property? Also regarding "no disclosures" it is the law (in this state anyway) that the seller fill out a form making disclosures or give the buyer a credit. I am sure the place is a wreck and I am sure the husband can handle it, but only if the place is actually safe to live in and hasn't been condemned or something. He is not looking for a teardown by any means!

Regarding a "Special Addendum" as part of the final contract, do any of you know what kind of special addendum they are talking about?

And finally, does anyone have experience purchasing a home this way? Would you recommend this type of transaction or pass on it?

TIA!
The property is probably owned by either a rrelocation company or a lender which foreclosed. They have never lived in, may have never even seen, and certainly know little or nothing about, the house and as such are unwilling to provide any sort of disclosure information. In most cases (though I guess you will need to confirm with the listing agent) buyers will have all the same abilities to have inspections done at their own cost as they would with any other home. Once you do the inspections, if you find things that are in need of repair, you will have to decide whether you want to proceed, and if so, how. In this case, the listing points out that the owner has no intention to perform or pay for any repair, update or modification. Perhaps they believe they have built all those things into the price. That's up to the buyer to decide. I wouldn't be afraid of a transaction like this, and have helped several buyers to purchase such properties. Be very careful about all the inspections and about the estimates on any necessary repairs or updates. That's where most people err. They believe something will cost $100 to fix, and it ends up costing $150, $175, or even $200. That can lead to trouble when it's on the larger scale of a house.
On the upside, most of these corporate owners, because they have never lived in & have no emotional attachment to the house, are more realistic about price negotiations & market conditions.
As to the special addendum; many of these companies use such addneda to the standard contracts, as a way of ensuring that everyone understands that they didn't promise anything or take responsibility for the condition of what you are buying. Again, as long as it's being reviewed by soneone who knows what they are doing, like a good local real estate attorney, it's not a big deal.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-13-2009, 12:58 PM
 
Location: Barrington
56,564 posts, read 38,952,757 times
Reputation: 18291
I have never seen a relocation company-owned home advertized this way.

More than likely this is a bank -owned home that was forclosed.

The current owner has not lived in the home and therefore is not in a position to make representations /warranties.

This does not preclude your friends from making an offer contingent upon a home inspection.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-13-2009, 01:14 PM
 
Location: Martinsville, NJ
6,162 posts, read 11,851,613 times
Reputation: 3971
Quote:
Originally Posted by middle-aged mom View Post
I have never seen a relocation company-owned home advertized this way.
Here in Central NJ it's not uncommon at all. I've seen it fairly frequently in the 8 years I've been selling homes here.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-13-2009, 04:34 PM
 
Location: Central Florida
800 posts, read 2,904,342 times
Reputation: 309
Most likely, it's a relocation sale or a foreclosure. There are usually no seller disclosures other than that the seller never lived in the home.

You can always get a home inspection. Even as-is properties permit that. Just have your agent write it into the contract. Set repair limits. I've even had banks who paid for repairs for roofing, A/C, and other structural issues, even in an as-is contract.
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate

All times are GMT -6.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top