k2bdeutmeyer Posted July 22, 2011 Share Posted July 22, 2011 DH and I are (or were) not looking to buy a house. We're pretty strapped financially and just can't afford to upgrade homes right now, but we still look for fun :) Well, we came across a listing for what appears to be a new construction home that is $25,000 less than what our 50+yr old home is worth and about $50,000 less than comparable homes. But, here's the "catch". The listing (on a reputable realty site - Skogman) says - sorry for the all caps, I just copied and pasted: "CORP NO SELLER PROP DISC. SOLD AS IS. BUYERS MUST PROVIDE BANK LETTER FOR CASH OR LOAN. UP TO 2 DAYS FOR OFFER RESPONSE. NO SUBJECT TO SALE OF HOMES. **SEE ATTACHMENTS ON MLS TO GET ANY AND ALL DOCS** BUYERS TO PAY FOR ALL WIRE FEES OREXPENSES TO WIRE PROCEEDS TO SELLER @ CLOSE. EGRESS WINDOW IN BASEMENT, BUYERS MUST PAY TO REKEY ALL LOCKS WITHIN 4 DAYS OF CLOSING AND FEE WILL BE PUT ON HUD AS BUYERS EXPENCE INVESTOR OFFERS CAN BE SUBMITTED AFTER THE 15TH DAY OF LISTING http://WWW.HOMEPATH.COM MORTG AVAIL UP TO 3.5%CC FOR OWNER OCC ONLY 1200 SELLING GAENT BONUS OWNER OCC ONLY MUST CLOSE BY 10-31-11 MUST WRITE IN OFFER TO GET BONUS" What does all that mean? DH thought maybe it's company owned (as in maybe the builder) and the company is going under, so they have to sell. The wire transfer thing really makes me wonder. Anybody have an insight? Thanks! Quote Link to comment Share on other sites More sharing options...
newbie Posted July 22, 2011 Share Posted July 22, 2011 50k under comps is not enough for a as is home. Stay away, w/all that jibber jabber, sound like trouble. We just bought a home as is,but we did it to get on our feet and stay out of rental mkt. I am worried as a chihuahua in a thunderstorm. Quote Link to comment Share on other sites More sharing options...
H.S. Burrow Posted July 22, 2011 Share Posted July 22, 2011 I believe that in listing foreclosed properties the realtor must list exactly what the mortgage company sends them. That is probably the reason for the mention of the wire transfer fees. Typically when you go to escrow the funds are wired to the title company/bank. Those wire fees are part of escrow and sometime the buyer pays those; in some cases the seller will. I think the mortgage company is just being up front that if wire transfer fees are involved, they will not pay nor waive them. The "as is" may mean that the home is not complete. Quote Link to comment Share on other sites More sharing options...
k2bdeutmeyer Posted July 22, 2011 Author Share Posted July 22, 2011 50k under comps is not enough for a as is home. Stay away, w/all that jibber jabber, sound like trouble. We just bought a home as is,but we did it to get on our feet and stay out of rental mkt. I am worried as a chihuahua in a thunderstorm. DH was joking about offering them $30,000 under asking last night, lol. Quote Link to comment Share on other sites More sharing options...
sbgrace Posted July 22, 2011 Share Posted July 22, 2011 What I'm sure of is that the stuff at the end and link about HomePath indicates this can be financed through Fannie Mae. Around here that means repossessions that Fannie Mae now owns. That will significantly drop the price all on it's own. These homes, though, may have been empty for a long time (hard on a home) or damaged before they were put on the market. It's possible this is available through them for another reason that I don't know exists. But the Fannie Mae financing is because they are trying to move a home for some reason. I'm not sure on the corp owned because I would have assumed this is govt/Fannie Mae owned and our Fannie Mae stuff doesn't read the same. Sold as is around here usually comes with further information--buyer should pay for professional inspection, title and land survey, utility confirmation, etc. You would need to do your homework, essentially, to make sure you know all that is wrong and are willing to take it on. Quote Link to comment Share on other sites More sharing options...
k2bdeutmeyer Posted July 22, 2011 Author Share Posted July 22, 2011 Great info, thanks!! The "as is" portion of that disclaimer I'm comfortable that we can handle. Meaning, I think DH and FIL are very good at assessing that sort of thing and would know when to walk away. Quote Link to comment Share on other sites More sharing options...
AuntieM Posted July 22, 2011 Share Posted July 22, 2011 I agree, my first thought also was that the builder was going under. Not unusual in these times. I would stay away. If you buy a new construction home, you want new construction follow-up. I'd think you're not going to get it here. The "as-is" reflects that the seller is not going to respond to any repair requests (and by agreeing to buy as-is, you forgo your privilege to make such requests). *If* you were ready to buy a house, and *if* you had a real-estate-savvy nearby personal acquaintance, the property might bear further investigation. Have you done a drive-by of the home? There is a neighborhood in my city that is full of new, beautiful, big homes. They are not selling - you wouldn't believe the low prices on these. But when you actually drive by, you get a clue: the houses are positioned on the lots in the most ridiculous ways, and the lots themselves are often small and virtually unusable. I'll take my best shot at interpreting some of this, but real estate professionals on this site, please correct my wrong guesses! "CORP NO SELLER PROP DISC. SOLD AS IS. When you list a home for sale, you must typically include a disclosure form stating all known problems with the house (ie, prior flooding, electrical items not to code, foundation problems, etc). Sounds like there is no disclosure statement available? Thus the "as-is" condition - what you see is what you get. BUYERS MUST PROVIDE BANK LETTER FOR CASH OR LOAN. You need a preapproval letter from your lender saying you are eligible for credit. This is not an unusual request. UP TO 2 DAYS FOR OFFER RESPONSE. They have 2 days (48 hrs) to decide how to respond to any offer you make. NO SUBJECT TO SALE OF HOMES. You cannot write a contract with a contingency clause, ie, make an offer to purchase on the condition that your current house sells. You have to be free to buy the house now. **SEE ATTACHMENTS ON MLS TO GET ANY AND ALL DOCS** This probably varies by your area? Don't know what it all is, unless they have a standard real estate contract (as many builders do) and want you to submit a contract in their format rather than any other format your realtor might typically use. BUYERS TO PAY FOR ALL WIRE FEES OREXPENSES TO WIRE PROCEEDS TO SELLER @ CLOSE. This is the seller's acceptable method of payment - he wants funds wired to his account at closing. No cash, no personal check, no cashier's check. This is not unusual. He adds that the transfer fees are the buyer's expense, that's just assigning that particular closing cost to the buyer. EGRESS WINDOW IN BASEMENT, Seems odd to mention that here, maybe it has something to do with the local building code requiring such windows? BUYERS MUST PAY TO REKEY ALL LOCKS WITHIN 4 DAYS OF CLOSING AND FEE WILL BE PUT ON HUD AS BUYERS EXPENCE This is weird. I guess that the rekey demand would protect any accusations against the builder or any of his crew members for entering your property after the sale? Several new builders we've bought from install a type of lock that automatically rekeys the first time a new owner uses a new key (a real locksmith can give you a better explanation!). I'm guessing this builder might have ordinarily done the same. But now he is cutting his losses, making the buyer responsible for this expense. Just guessing... INVESTOR OFFERS CAN BE SUBMITTED AFTER THE 15TH DAY OF LISTING WWW.HOMEPATH.COM Parties wishing to buy this as investment property (not owner occupied) can only make offers 15 days after the initial listing. MORTG AVAIL UP TO 3.5%CC FOR OWNER OCC ONLY Perhaps this builder is also in the loan business or has a partner who does loans, and they are offering a special rate if the home is to be owner occupied (and not bought by someone who's going to make it a rental). 1200 SELLING GAENT BONUS OWNER OCC ONLY The real estate agent who brings a buyer to this home will get a $1200 bonus, paid by the seller, when this deal closes, only if it is to be owner occupied. MUST CLOSE BY 10-31-11 MUST WRITE IN OFFER TO GET BONUS" Apparently two stipulations that must be met for the selling agent to earn that $1200 bonus Hope this helps! Quote Link to comment Share on other sites More sharing options...
k2bdeutmeyer Posted July 22, 2011 Author Share Posted July 22, 2011 Thanks so much! I was comfortable and familiar with all the terms except the re-keying and the wire transfer portions. I've looked into Homepath & this home is listed on homepath.com, so it is definitely Fannie Mae owned. They have an "incentive" listed on the listing which explains the "bonus". We are familiar with the neighborhood, but haven't driven by as of yet. We did contact an agent to walk through it just to see what kind of shape it's in. DH and FIL are very house/real estate savvy, so I'm comfortable that their assessment of the situation will be accurate. We certainly aren't going to jump into anything without checking into EVERYTHING first - especially since we weren't really planning on moving anyway. Quote Link to comment Share on other sites More sharing options...
k2bdeutmeyer Posted July 22, 2011 Author Share Posted July 22, 2011 Also wanted to add that I think the egress window was mentioned because the basement is unfinished, but that would allow a 4th conforming bedroom if you the buyer wanted. Quote Link to comment Share on other sites More sharing options...
AuntieM Posted July 22, 2011 Share Posted July 22, 2011 Oh, just to say that you seemed concerned that he's asking for a wire transfer - I consider that nothing to worry about. It is the most efficient form of payment these days - sort of like having your paycheck direct-deposited into your bank account. I won't be a total nay-sayer on the house itself. Who knows, it could be a mess but it could be a total gem. This builder could be going under, the house could be unfinished, or, it could be the last house in his inventory in this particular neighborhood and he just wants his crews to be able to move on to a new tract of development. You can't say for sure until you investigate the house. How's the market for new home construction in your area, generally speaking? You state that you are cash-strapped and aren't really ready to buy/move. Well, you'd first have to sell your current house to be free to make an offer. If you're not free to make an offer, the rest really doesn't matter... Quote Link to comment Share on other sites More sharing options...
AuntieM Posted July 22, 2011 Share Posted July 22, 2011 Also wanted to add that I think the egress window was mentioned because the basement is unfinished, but that would allow a 4th conforming bedroom if you the buyer wanted. Of course, that makes perfect sense. Quote Link to comment Share on other sites More sharing options...
k2bdeutmeyer Posted July 22, 2011 Author Share Posted July 22, 2011 The market is pretty good around here - the worst of it never really hit here. It'll be interesting to at least check it out. As far as making an offer. It just so happens that FIL could pretty much pay cash for it right now if we wanted to do it. He's always looking for investments (he's a business owner), so we would work something out with him if we wanted to jump on it. Quote Link to comment Share on other sites More sharing options...
AuntieM Posted July 22, 2011 Share Posted July 22, 2011 The market is pretty good around here - the worst of it never really hit here. It'll be interesting to at least check it out. As far as making an offer. It just so happens that FIL could pretty much pay cash for it right now if we wanted to do it. He's always looking for investments (he's a business owner), so we would work something out with him if we wanted to jump on it. Wow, that is a *nice* position to be in! I'd have to go look, too! Quote Link to comment Share on other sites More sharing options...
k2bdeutmeyer Posted July 22, 2011 Author Share Posted July 22, 2011 Yeah, I dream of being where the IL's are someday. I'm not sure it'll ever happen though, LOL!! To be honest, I'm not thinking we'll really go for it, but I do think it's worth at least looking at. Quote Link to comment Share on other sites More sharing options...
SonshineLearner Posted July 22, 2011 Share Posted July 22, 2011 If you do it, a reputable home inspector would be your best friend!!!!!! Don't do it without serious seeing if it's ok. Your expenses could be way more than the cost of the house if you're not careful. If it's a good deal, then great! ;) Quote Link to comment Share on other sites More sharing options...
k2bdeutmeyer Posted July 22, 2011 Author Share Posted July 22, 2011 If you do it, a reputable home inspector would be your best friend!!!!!! Don't do it without serious seeing if it's ok. Your expenses could be way more than the cost of the house if you're not careful. If it's a good deal, then great! ;) For sure!!! Thankfully DH and FIL are very savvy about this sort of thing and I'm sure they would take all precautions and necessary steps to make sure we didn't get stuck with something we couldn't (or don't want to) handle. Quote Link to comment Share on other sites More sharing options...
k2bdeutmeyer Posted July 22, 2011 Author Share Posted July 22, 2011 The other thing about this house is that (assuming it is structurally sound and in fact a good deal) if we were able to pick it up for the listing price (or less), we could have the same mortgage payment as our current one (the house is for sale for the same amount as our current mortgage) AND have a good chunk of equity as we could likely sell our home for $35,000 (roughly) over what we owe on it. Obviously, we couldn't use the $35,000 for a down payment as our house isn't even for sale and they aren't taking any contingencies, but we could certainly dump it into the new mortgage once the house sold. Quote Link to comment Share on other sites More sharing options...
momofkhm Posted July 22, 2011 Share Posted July 22, 2011 DH and I are (or were) not looking to buy a house. We're pretty strapped financially and just can't afford to upgrade homes right now, but we still look for fun :) I can't help with the rest, and it looks like others have provided the info anyway. But I just wanted to say I'm glad I'm not the only one. :) There is a house here that first I wondered what was wrong with it as there were no pictures of the inside of the house. Now I've seen inside pictures. It might be worth a look. But I know dh wouldn't even think about it at it's current price. But they seem to drop the price a lot. It's been on the market about 50 days and they've dropped the price twice already. Maybe only 3-5K, but still. Makes me wonder again, what is wrong with this house? If it gets to be under $300K, I may have tell dh. :) Quote Link to comment Share on other sites More sharing options...
k2bdeutmeyer Posted July 22, 2011 Author Share Posted July 22, 2011 Cheryl - I totally get it!! We wouldn't even be THINKING about this if the price wasn't so low. If we sold our house for what we owe and bought this one for the listing price, we would literally be doing an even trade (money wise). Only we'd be getting a much newer and more updated house! That being said, I know we can sell our house for at least $25,000 more than we owe, probably more like $35,000. Quote Link to comment Share on other sites More sharing options...
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