"As is" property questions

[Chris V.]

We're looking at a bank owned property that is listed at a great price for the size and neighborhood, being sold as is. We're interested, but concerned since we don't know a lot about the condition. Any experience on this? Are there ways we can do to protect ourselves and still make an offer? Does "as is" mean we can't get an inspection or back out if there are major problems with the property? We're new investors and don't want to make a big mistake on this. Thanks!

[Linda S.]

@Chris V.,

You can get an inspection, and if you are concerned, I would highly recommend it! You will be responsible for the inspection cost, as the bank won't pay anything to fix anything. I don't think you can do anything to "protect" yourself as the as-is REO are sold as-is, the bank won't pay to fix or do anything, so it's strictly-- what you see is what you get.

The way I look at it, with heavily discounted houses or REO, you aren't getting a "deal" you're getting a cheaper price because the bank knows how much it will cost to fix it up. If you're new, I'd get one, specifically check the roof, HVAC, structure and if there's any mold, those are normally the biggies! Good luck!