Whether you are a buyer or buyer’s agent there are some important considerations you will need to understand before you decide to move forward with an offer.
The Property. Know what you are buying.
Banks assign local listings to qualified/vetted real estate brokers. Most often the property is vacant but in some instances the property is occupied. In either case the property is being sold as-is, where-is. This means banks, with few exceptions, will not make any repairs or price adjustments based on inspections, open permits, or certificate of occupancy. These all fall on the purchaser. It is highly recommended that every buyer do their due diligence as to the character or quality of the property or it’s use. Additionally, please do not ask the broker any questions about the property, it’s character or condition. We cannot and will not answer. Utilities may or may not be turned on for showings, inspections, and appraisals!
Most foreclosed properties are sold for cash. It is possible to obtain a mortgage albeit a difficult process. First consideration is does the property have heat, hot water, and a working kitchen and bathroom. FHA financing is more difficult as the FHA appraiser makes an inspection as well. One of the more popular financing method it the 203k mortgage. Consult with a qualified mortgage lender to discuss your options.
Making The Offer. It may take up to 10 days for a response.
Offers are very specific. Try to get as close to asking price as possible. Many Foreclosures sell for over full asking price. Make sure your real estate agent reads the notes we provide in the listing and follow them exactly! Your offer will be rejected if any requirements are NOT met. We see all too many times a buyer has lost a property because their agent did not follow instructions. In New Jersey all contracts prepared by agents are subject to a 3 Day Attorney Review. This means once your contract is fully executed by both buyer and seller you may have an attorney review your contract and associated docs. NOTE: Most banks will not allow any changes to theses docs. Once a contract is accepted NO CHANGES in buyer name, price, closing date, and terms.
What you and your agent will need to make an offer:
- Proof of Funds if Paying Cash or Mortgage Pre-qualification
NOTE: Must be in buyers name and no more
than 30 days old.
- NJ REALTOR contract
- Bank Addendum and Required Docs
- If Corporation or LLC you will need formation and resolution for authorized signer
The information contained herein is not meant to be the exact procedures rather its a basic guideline in which to follow. The MLS printout will be more specific as to the bank requirements as each bank has different requirements and procedures.
For more information please contact:
Albert S. Veltri
Broker of Record
Veltri & Associates, Realtors
1.866.483.5874 – Ext. 401