Buyer purchasing a bank owned repo

If you were buying a repo, or bank owned property in Las Vegas today, the following requirements would be expected of you, the Buyer, after receiving a verbal acceptance from the seller:

1. Paying for a home inspection
2. Order and paying for the CIC package (upfront)
3. You will waive your rights to an SRPD
4. You will waive your rights concerning any property defects and you must accept the property in its present condition with no repairs
5. You know nothing about any community problems (HOA issue, soils problems, etc)
6. You often have to wait for one or more of the utilities to be turned on
7. Should the condition of the home deteriorate during the escrow, you still buy it "as-is"
8. You may be required to pay half or all the NV transfer tax
9. You most likely will have to pay for your own home protection plan if you want one

All this is usually done without a signed contract by the seller! Why? It is common practice for listing brokers of these properties to contact the Buyers agent and tell them their offer has been accepted, and then present them a counter offer drafted by the seller (bank) with no seller’s signature on it. Some banks can take two weeks to actually sign your contract

Buyer purchasing a seller occupied short sale

1. You have a signed contract BEFORE you do anything!
2. You get an SRPD (Sellers Real Property Disclosure) signed by the seller disclosing any defects concerning the property that are known by the owner delivered to you during your due diligence period
3. You are allowed a due diligence period whereby the CIC package (package of homeowners association documents) has to be provided to you for approval (no surprises at the end)
4. You order a home inspection with the seller present (if not present he is available by phone to answer any questions) again no surprises!
5. You are the sole buyer and have all rights to hold this property in escrow for the allotted escrow period.
6. You are buying a home that is typically being maintained; the grass is being watered, the property is typically occupied and the owners many times have upgraded the property well beyond that of a basic home
7. All utilities are on
8. On an FHA loan, you may want to order an appraisal upfront (preferably during diligence) and split the cost of that appraisal with the seller. The property is assigned a case # and that appraisal is good for 6 months! Now the negotiators on the short sale are given the appraisal at the outset and no surprises or adjusting sales price at the end.
9. The down side: time required to wait for a short sale acceptance