One of the Pitfalls of buying A Bank Owned Property…

Are we going to be able to buy this home or not? That is what my last buyer had to ask, after already spending $1000.00 on two appraisals…

In my previous experience, this only happened with FHA or other Government loans such as VA or also USDA loans…but, in this case, even my “Conventional” buyer that had more than 20% down-had some repairs called in the Appraisal-that caused her to have to walk away from the sale…that was because she was buyinig an “REO”, AKA Bank ownded Property.  In her case, she had already spent $1000 on Appraisal inspection-to be told by the Asset Manager-that the work was beyond the scope of their Contractor-and allowed costs…then re-listed the home as a Cash Only Purchase.  Well, so much for that…

Just when you think you have done your job, the buyer is Happy, and their offer was accepted…Wait-the appraiser calls out for work to be done, and the Underwriters Condition the loan.  In other words, no loan until those things have been remedied.

Guess who often gets to pay for that…especially in the case of a short sale, or Bank owned Proeprty…the buyer-sometimes, rendering the home no longer affordable.

Here is a picture of my client and I-scraping a Tool shed…not even attached to the house…though, if not done-and signed off on, by the appraiser…it would have been all over for that loan, buyer, and purchase.

Talk about a full service realtor!

Shed wasn’t even attached to the property!  What is the reason for this you ask?

Client and I-doing what we have to for an FHA loan

Bottomline, eventhough you thought you have bought a home-it could end up depending on what the appraiser says.  This sometimes happens, because you often do not get the disclosures in a Short Sale or Bank Sale, that you would have otherwise received in an equity sale.  Other times, the Bank did not properly inspect the home, prior to placing it on the market.  For more information on how to avoid losing money in the Contingency Phase of a sale, email or call Wendi-Mae Davis, CRS, GRI, Broker Associate, Connect Realty.com, Inc. License # 1061046.  Toll Free 866-333-6333.  email:  wendimae@wendimae.com or check out my personal website, at HTTP://www.wendimae.com    

Author: Wendi-Mae Davis

I love what I do, and truly feel it matters-which is why and how I can be and am so passionate about becoming a partner to my client-when start to finish, of the process to buy or sell their home. There simply isn’t anything better than a smile on the face of a satisfied client…it is what I work for. True satisfaction and peace of mind for each and every person I work with, and for.

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