Comments on: Buying REO’s – Should you ask for Repairs? http://gwsellshomes.com/2009/04/18/buying-reos-should-you-ask-for-repairs/ Realty World - Preferred Properties Tue, 07 Sep 2010 12:14:57 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Gary Wuestenberg http://gwsellshomes.com/2009/04/18/buying-reos-should-you-ask-for-repairs/comment-page-1/#comment-141 Gary Wuestenberg Mon, 19 Apr 2010 23:58:31 +0000 http://realtyworldpp.com/?p=4#comment-141 Steve, what has changed with regards to "As-IS" sales right now is the lack of inventory. We are currently in a Sellers Market since there are more buyers than sellers. So the sellers feel they have the upper hand and will tell you that they will sell it to the next individual that comes along. So you are kind of in a bind. One thing the banks really want though is someone that will close the deal. If you can convince the seller that you are not going to keep asking for more concessions you might be able to get them to help you with the roof. Have your realtor discuss this with the listing agent and see where it goes. You have another option with the type of financing that you choose to use. The bigger banks are rolling out "Renovation" loans that will allow you to roll the cost of the repairs into the loan. The same rates apply and the loan is good for up to 110% of the improved value. I hope this helps. Good luck! Steve, what has changed with regards to “As-IS” sales right now is the lack of inventory. We are currently in a Sellers Market since there are more buyers than sellers. So the sellers feel they have the upper hand and will tell you that they will sell it to the next individual that comes along. So you are kind of in a bind. One thing the banks really want though is someone that will close the deal. If you can convince the seller that you are not going to keep asking for more concessions you might be able to get them to help you with the roof. Have your realtor discuss this with the listing agent and see where it goes.

You have another option with the type of financing that you choose to use. The bigger banks are rolling out “Renovation” loans that will allow you to roll the cost of the repairs into the loan. The same rates apply and the loan is good for up to 110% of the improved value.

I hope this helps. Good luck!

]]> By: Steve Owens http://gwsellshomes.com/2009/04/18/buying-reos-should-you-ask-for-repairs/comment-page-1/#comment-127 Steve Owens Tue, 23 Mar 2010 05:13:07 +0000 http://realtyworldpp.com/?p=4#comment-127 I wish I knew what to do with an REO I am looking at now. It is a small duplex and seems to be very fairly priced at $180,000 (valuations nearby are $220K and up). We have only been able to negotiate it down to $173,500 and then we found quite a bit of dry rot along the peak of the roof, mostly just on one side. So, it looks like it needs a new roof, which makes it somewhat less of a good deal. It hasn't been on the market too long and I think I can make it work as a rental (i.e. positive cash flow), but my suggestions that the roof get fixed first (or else compensated or split or anything) are all rebuffed with the standard "as is" argument. I wish I knew what to do with an REO I am looking at now. It is a small duplex and seems to be very fairly priced at $180,000 (valuations nearby are $220K and up). We have only been able to negotiate it down to $173,500 and then we found quite a bit of dry rot along the peak of the roof, mostly just on one side. So, it looks like it needs a new roof, which makes it somewhat less of a good deal. It hasn’t been on the market too long and I think I can make it work as a rental (i.e. positive cash flow), but my suggestions that the roof get fixed first (or else compensated or split or anything) are all rebuffed with the standard “as is” argument.

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