Just Because It's As Is Does Not Mean You Don't Do An Inspection
September 16, 2008
Phoenix REO properties and due dilligence.
The large supply of lender owned or REO homes are priced--in most cases--to sell. Lenders don't know much about a home so don't expect a seller property disclosure statement (SPDS) and DO expect to be buying the home "AS IS", WHERE IS".
That means that the lender is very unlikely to do any sort of repairs for you. Still, this should not stop you from doing an inspection. In fact, you should do an inspection because it is a non-owner occupied and lender owned home.
These homes are usually in need of some repairs and often lots of
repairs. Although there are an increasing number of home where the
lenders have put in money to make them move in ready. But, there are
additional threats to homes that sit vacant.
You don't hear much about the copper theft any more but it still happens. These may be water pipes but increasingly electrical cables are being stolen from homes. I don't mean a few wires here and there. There are thieves that take out the entire electrical cables leaving only small stubs. This is an extremely complicated and costly repair. Often home that are going into foreclosure are no longer cared for so you don't know what is missing.
Even if the lender will do no repair work you want to know what is and what isn't there. Some deals are really good but that deal can quickly turn into an overpriced purchase once make some repairs you didn't catch.
So as is where is does not mean don't do an inspection. Spend the few hundred dollar. Inspector don't catch everything but at lease you'll know what you're getting into and it does not matter if this is an older home or a newer 1 or 2 year old REO property.
