This would be my 3rd real estate purchase, however 1st that is a REO/Bank owned variety. The property sits in a desirable neighborhood (B rated) with good schools and new commercial real estate all around (shopping centers, new hospital etc). My agent I am working with said he has worked with the listing agent on another transaction earlier this year, and mentioned the asset manager who has this property will likely not budge much. My agent shared the property was listed fairly competitive (200K vs. homes in the neighborhood via MLS selling for 210-215 move-in ready) although no appliances convey, the flooring throughout would need to be replaced before move-in, and most importantly, my inspection revealed the HVAC and AC (both original at 14 yrs) are on their legit last legs.
I was present for the inspection, and asked point blank to the inspector what his thoughts were about the home. He said if I was purchasing from another person, I would likely have more negotiating power on the price, however it's a guessing game whether an asset manager will provide a credit to replace an AC Unit ($4-5K).
My two questions are:
- Assuming the appraisal comes in at or above the offer price of 200, knowing I will have to spend 5K within the first 30 days to replace the AC, do I walk if the seller (asset manager) balks at our request for a credit?
- How would I be able to know how long the property has been vacant? I have heard some banks are much more flexible if the property is on their books longer than others. To put a little color behind how I had my offer accepted in the first place, the property was listed for 197K, and there were multiple offers. We came in 3k above ask (financed) and were accepted. My agent believes there were at least 2 cash offers that were lower that they passed on.
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source https://www.reddit.com/r/RealEstate/comments/ehfcjt/buying_banked_owned_reo_for_primary_residence/
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