General Information about investment properties and what is usually involved in making an offer on these type of investment properties.
AS-IS - These type of properties are sold “as-is” and the seller will not make any repairs. They are exempt from disclosure and usually have never occupied the property. Most cases, no history is available on the property or prior owners. These properties are marketed/priced assuming repairs will be needed and seller is not responsible for structural defects, code violations, or lead-based paint, radon, termite damage, active termites or mold.
Inspections and Utilities - An offer can be made on these homes contingent on inspection results.
Winterization - Most properties are winterized during the fall/winter.
Financing for these type of properties - Seller will not accept offers contingent on sale/closing of another property.Note: Credit Lines, IRA's, Stocks are NOT CASH.Loan Commitment Letter – If financing, a loan commitment letter must be received within the timeframe specified in the offer to purchase. Failure to do so will result in buyer’s earnest money becoming non-refundable should the closing not occur due to failure to secure financing within the contract timelines.
Addendums - There will be special seller addendums to be filled out after an offer is accepted, these seller addendums pretty much read that the buyer is buying property in as-is condition and seller is not responsible for anything related to sale of the property once closed.
Per Diem - There will be a charge to the buyer for everyday that passes the original closing date. This can be reason connected to fault of the buyer or buyers agent or buyers lender or buyers closing attorney.
Multi-offers - If the seller receives more than one offer on the property, the seller MAY request Highest & Best offer from all buyers. In that situation, the seller still may reject, accept or counter the highest and best offers.
Sellers response to offer - Unfortunately, banks do not work on weekends or holidays. The banks will respond when they can (many are overwhelmed and understaffed) and it may take several days to receive a response.
Closings - Due to the fact that these properties were acquired through foreclosure, there may be closing and title problems, which sometimes do occur, and delay closings. So beware that just because there is a closing date, it does not mean the property will close on that date.....take into consideration when scheduling movers, contractors, etc. Buyers may not make alterations or occupy the property prior to closing - NO EXCEPTIONS.
