The Beck and Pitel Team - Inside the Phoenix Real Estate Market

Here are a few points to consider if buying an “As Is” Property in Arizona:

• A property being sold “As Is,” does not mean an owner is released from the legal obligation to disclose known material latent defects. But, many properties being sold “As Is” are bank or corporate owned and these owners have never lived in the property and therefore have limited knowledge of the home or its history.
• You are still allowed to conduct any inspections you would like on the home. Conduct inspections within the time frame outlined in the purchase contract. The seller is not obligated to correct defects discovered by the buyer during inspections. If you discover defects during an inspection, you may choose to cancel the contract and you should get your earnest money back if the cancellation is made in writing and in accordance with the inspection period requirements of the contract.
• Sometimes utilities are not turned on at the property and you may have to connect them at your own expense in order to conduct inspections.
• In addition to turning the water on for the inspection, you may have to fill a drained pool.
• Consider asking for a longer inspection period so you have time to get estimates for repairs/improvements. While “As Is” properties are often priced below market, if defects discovered are extensive, the amount invested to make the property habitable, or just to your liking, could end up totaling more than the home's fair market value.

When it comes to buying a home being sold “As Is,” it is essential to get professional guidance starting with a knowledgeable REALTOR®. Agents help you understand the contract, addendums, and disclosures. They guide you through every step of a purchase through closing and can help you find the resources you need for the services they don't provide such as title companies, home inspectors, attorneys, lenders and so on.

Every property and situation is unique. If you are interested in a bank-owned home or have additional questions about the process, give us a call at (623) 362-3074 or email us at info@valleyrealestatepros.com.

Often priced under the current market value, short sales and bank-owned homes may be a great buy - depending on the condition of the home.  There are pros and cons to both.  We are hearing about and witnessing serious damage to plumbing and electrical systems and/or cabinets, sinks, appliances, etc. being removed.

While priced “higher” than bank-owned or short sales, owner occupied homes where there is some equity could be the better value in the end.  The advantage with these homes is they are more likely to have been maintained and you are generally dealing directly with the seller, not a remote employee of a bank or banks.

But, if you have the time and the patience (as it can take several days to even a couple of months to get a response from the bank on a short-sale listing), short sale or bank-owned properties may be just what you are looking for.

If you, or someone you know, is looking to purchase a bank-owned or short sale home for an investment property, a first home, or looking to upsize or downsize in the Phoenix area, we would be happy to sit down and review available listings with you, types of current financing available, as well as some issues to watch for when buying “as-is” properties!  Some things to be aware of before starting your search is:

• You will need a Loan Status Report (LSR) and/or proof of funds before making an offer
• You may have to turn the utilities on in your name to do any inspections
• Depending on the type of financing you are using, the condition of some homes (appliances missing, drained pools, etc.) may preclude some financing options

In the end, we are asking you to consider all homes on the market for sale, as there are many homes not owned by banks or in a short sale situation that are as good of a value.