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Foreclosures in Reno/Sparks NV |
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(4/20/2008) : Maybe you saw the article in the RGJ this weekend about the Dickson Foreclosure Bus Tour or have just read the Foreclosure Headlines in every national newspaper. There is certainly a lot of buzz around “Foreclosures” these days. It seems every day someone calls with an interest in taking a look at foreclosure homes – first-time buyers, investors…everybody.
It is true we have quite a few homes on the market that are Bank Owned, and some of these Bank Owned homes are a great deal. However, there are a few aspects of a buying a Bank Owned home that you should be aware of before getting to involved in the process. - These properties will almost always be offered in “as-is” condition. This means the bank will not be doing any repairs during the escrow period. Typically, when dealing with a seller on a resale home, there is a “repairs budget” incorporated into the Offer Contract. This budget usually covers most of the minor issues that are found while doing the Home Inspection (and there are always issues found!). When purchasing an “as-is” property – none of those defects will be repaired.
- Most banks will not furnish the buyer with a Sellers Real Property Disclosure or SRPD. This essentially is list of all systems and features of the home and disclosure as to whether the Seller is aware of any problems (past or present, repaired or not-repaired) with those systems or features. The SRPD is required by Nevada Law. Banks will typically require that a buyer waive their right to the SRPD…their reasoning is that they (the bank) have no knowledge of the homes past. Nevada law still protects a buyer if the bank doesn’t disclose a defect that they are aware of….but typically they will not be aware of much.
- Most (not all) bank owned properties are in rough shape. Lately, I have started to see some that are in good condition – meaning most people could move in and live right away. But still it seems that most of the Bank Owned homes – especially those that are aggressively priced - are beaten up.
- Just because it is Bank Owned – doesn’t necessarily mean it is a good deal. There are plenty of Bank REO’s that are overpriced. Eventually, the bank will get down the a market price – but it is common to see them hit the market at or above most of the other resale homes on the market.
If that hasn’t scared you off – and you are still interested in taking a look at some Bank Owned (Foreclosure) homes in the Reno/Sparks area. Give me a call or email. Thanks, Robert |
