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u r right. I m more concerned with price of the house. I definitely do not want to over pay for the house. Before the inspection, I wasn't sure and now I m certain it is mold problem. I was hoping selling bank would put that into consideration when asked to lower the price little bit for the fix. I think bank is betting someone who has no clue about buying house to over pay it.
The banks are trying to limit their tremendous loses by having little negotiation flexibility on their foreclosed properties.
However, these properties are usually priced well below the market value.
Check your appraisal report: has the appraiser used foreclosed properties for comparable sales?
If so, you are probably getting a good deal.
That is something I would recommend you walk away if the seller is not willing to budge. That normally means it could be something they are trying to hide. Especially with something like mold which could either be in a small section of the house or possibly the whole thing. What you should do is have the spot actually inspected to see the damage and then agree to take that out of the selling price or see if the seller is able to come to a reasonable deal. Good luck with that.
That is something I would recommend you walk away if the seller is not willing to budge. That normally means it could be something they are trying to hide. Especially with something like mold which could either be in a small section of the house or possibly the whole thing. What you should do is have the spot actually inspected to see the damage and then agree to take that out of the selling price or see if the seller is able to come to a reasonable deal. Good luck with that.
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Cindy, dear, the seller is a bank that has never actually had possession of the house.
The bank is not trying to hide anything, it's just trying to download this property off their liabilities sheets and sell it at the best price for a property in its condition in the current market.
Snorky's choice is to buy it AS IS or to walk away and maybe lose a bargain...
The banks are trying to limit their tremendous loses by having little negotiation flexibility on their foreclosed properties.
However, these properties are usually priced well below the market value. Check your appraisal report: has the appraiser used foreclosed properties for comparable sales?
If so, you are probably getting a good deal.
Congratulations!
the appraiser priced it 150k above the house sold as foreclosure that is three houses by this house.
I am not sure if I can get my money back from this appraiser since I don't think this appraiser knows what she/he is doing. This aPpraiser did not use any foreclosed. House and houses so much better than this house. I would buy other houses at that price compared to this house at the siar price.
the appraiser priced it 150k above the house sold as foreclosure that is three houses by this house.
I am not sure if I can get my money back from this appraiser since I don't think this appraiser knows what she/he is doing. This appraiser did not use any foreclosed. House and houses so much better than this house. I would buy other houses at that price compared to this house at the siar price.
Hmm, I am sorry to hear that, snorky.
Does this mean that you are out of the transaction now?
If this property is a REO in a neighborhood with recent foreclosed property, the appraiser is supposed to use foreclosed properties as comparable sales.
I do have to admit that appraisers are not always right.
Of course, I don't know if this appraiser is in any way unethical.
However, appraisers get business from banks, and sometimes there might be a conflict of interest there.
Why don't you call the appraiser and ask nicely why recent foreclosed properties in the subject's proximity were not used as comparable sales?
I am not sure if he/she would even take your call, but the worst that can happen is for this appraiser to not return your call or plainly refuse to discuss the appraisal with you.
I have serious doubts that you will be reimbursed for the appraisal fee, don't even waste your time trying to get it.
Good luck, snorky, and don't be discouraged, this is still a buyers' market, the ball is in your court.
If this property is a REO in a neighborhood with recent foreclosed property, the appraiser is supposed to use foreclosed properties as comparable sales.
It depends. If there are 20 recent sales in a neighborhood and only 2 are foreclosures or short sales, than the latter is NOT necessarily the market.
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However, appraisers get business from banks, and sometimes there might be a conflict of interest there.
This should never happen. Any appraiser who cannot be objective and independent should return his/her license to the state.
Is this a as is/where is sale common with foreclosed properties?
What does your contract say about resolution of home inspection findings?
Typically, home inspection issues are negotiated, unless the contract specified as is/where is. The seller is not required to make any repairs. The buyer is free to withdraw from the contract. Most contracts have deadlines for the home inspection/negotiation period.
Do you have an agent or attorney representing your interests? Your contract governs your rights.
Your a professional, i was only a assistant to realtors, but this is also what i was thinking, if this is a foreclosed property, most cases are as is. And the seller absoutely does not have to make any repairs, unless it was negotiated in the contract. The seller obviously knows about the mold issue, depending on how bad the mold issue is, it could cost hundreds, or more. The agent should be representing there buyer with sound advice.
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