Follow Me On Pinterest
Todays Real Estate Question is asked by a First Time Home Buyer living in Virginia not Sacramento.
I am posting the home buyer comment here in Ask Gena your Real Estate question since there might be other home buyers here in California that may have the same real estate question.
My answers will be accordance with CA Real Estate.
I will answer the home buyers question in red. So, lets get straight to the question.
First Time Home Buyer Real Estate Question:
In a short sale will the property be in the condition of say a foreclosed or as is where is sale? Every foreclosure house for sale (referred to as a REO or Bank Owned), is different. Some are as is and some homes the bank is willing to fork over the cost of a few repairs. However, when you are dealing with a home for sale that is a short sale, the home buyer is already in trouble and typically cannot afford any additional costs for repair. Thats why the seller is in short sale.
For example, from watching shows like flip this house, some flippers purchase homes sight unseen from banks and when they get there they find either huge messes or a stripped home (copper wiring etc missing). That is NOT the way to buy a house or an investment property. My suggestion is to not believe everything you see on flip this house. That is one of the many reasons we have the problems in todays real estate foreclosures.
Not to say this is a big problem but I will be purchasing my first home here in the very near future and dont want to end up with a $500k Hunk-o-Junk. Congratulations, you are making wise decision as long as you get pre-approved, ask for a good faith estimate from the Lender and get an experienced Realtor to help you. In fact, Lenn is the best in VA that I know. Just give me a call or email and Ill hook you up so that you dont make any mistakes and end up with a hunk-o-Junk.
Does one run the risk of this type of problem on a short sale? Not if you pay for a home inspection. You should know what you are getting within the disclosure period. This is the time line according to the agreed upon purchase contract where all disclosures are obtained and as the home buyer you perform any inspections that you decide necessary. However, if you are purchasing a Foreclosure, the seller is the BANK and the bank is not obligated to disclose anything. Remember, the bank never lived at the house. Only homeowners, that are sellers are obligated in CA under the law to disclose IF they lived on the property.
Also, are they allowed to have their own inspector (paid for by the prospective buyer) to come by and check the home out before signing papers? In CA the home inspection is performed within the agreed upon disclosure period, typically within the first 17 days and is usually paid for by the home buyer. The seller has 7 days to provide all of the disclosures. No one should ever sign any papers before thoroughly and completely satisfying all details of the home for sale under contract.
If there is some measure of accountability there, then Ill include short sale homes in my search (currently I am looking for new construction within the past 8 years). You should frankly ask the experienced Realtor that you have about new construction and short sales. Realtors in the areas know if banks are even accepting short sales and if builders are going out of business in a new area being built leaving the home buyer high and dry with half finished neighborhoods and possible liens if going bankrupt. As you can see, it is essential that you have someone working with you that has the experience, the expertise and knowledge so that you are not caught unaware.
Also, if asked, are realtors obligated to disclose deaths (and the nature of the death if asked) in a home? The Seller in CA fills out what is called the Supplemental Statutory and Contractual Disclosure. The Seller is obligated to disclose if there has been a death upon the property within the last 3 years and if so, asked to explain. Frankly, I always instruct my home sellers to disclose even if a death occurred more than 3 years previous. The more a house seller discloses the better for everyone. However, I dont know VA law so that is something that your experienced Realtor can answer. Again, this does NOT apply if you are dealing with a foreclosure.
I dont care how a person passed, I prefer not to live in a home someone died in.
As a side-note, as the years go by, home buyers will find that more people will be dying in their homes. Hospitals are sending folks home to die so it is not unusual and wont be unusual in the years ahead.
I am sure it varies by state and as I live in VA I expect you may not have an exact answer but a ball-park answer is sufficient. Thanks!
Yes, laws are local and VA will have its own laws that govern Real Estate. I believe that in VA if Im not mistaken, atttorneys get involved with all real estate transactions.
Good luck and give me a jingle if you want the best Realtor in VA. Hope my answers helped you as well as other home buyers and First home buyers in CA and other States, as well.
If you have a Real Estate question, check out 
and read what other home buyers and home sellers have asked.
Feel free to ask your Real Estate question by email.
If you like what you read here on Sacramento Real Estate Voice simply click and subscribe 
to get the latest articles sent to your email.
Other Ask Real Estate Questions:
I have a offer in on a short sale. Have been waiting for over a month. Dont know if its time to walk away. We offered 252000, home owner owes 263000. We already had an expection done the septic failed and needs 16000 to repayer. The new offer going to short sale is we now may 263000 to the bank, bank has septic repaired 16000 at close the septic guy will get payed. Will the bank accept this or do you think we should walk away, we really love the house and havent seen another to compare.
Bella,
Most short sales are not even being accepted. Based on what you said above, it doesn’t sound as though the bank has accepted your offer yet. I assume that you are in the disclosure time line where you are paying for your inspections.
I hope you are being represented by a professional Realtor. You want to make sure that the Realtor has provided you with a detailed market analysis of the property.
You will need to counsel with your Realtor and see how the value of the property adds up to your offer.
Without being privy to all of the information, I can only counsel you to talk to your Realtor for advice.
I wish you the best.