A potential buyer must look at comparable properties in the area, and what they sold for, within the past six months. In addition, the buyer must identify the cost of any needed repairs by having an inspection done and obtaining quotes from professional contractors.
Lenders usually sell REOs “as-is,” which makes the buyer's inspection even more important. If the inspection uncovers unanticipated damages, which the institution will not repair, the buyer can cancel the transaction. The buyer must be sure the disclosures contain a statement to this effect, before signing any documents. |
