Hi everyone
I live in Ontario, canada and been facing problems in buying Power of Sale properties from banks for rehab. The reasons are typically that the prices they anticipate (so my RE agent say) for those run-down properties tend to be closer to their Listed Price ( if not sometimes higher) than what most of US-based RE investors would suggest in their literature (i.e Purchase Price must either be at least 20% less than Listed Price or to be calculated based on the after-rehab value of the same house). There are also other reasons presented which include that banks usually do not look on any offer that would be conditional especially to Inspection and/or financing. Some banks have certain criteria which they require the buyer to sign with the standard Purchase Agreement. In these criteria they rid themselves of any responsibility for any faults in the house.This also contradicts what I have learnt (i.e. put conditions on financing and inspection as exit strategy). If this is true in Canada then it is a pure gambling to buy as-is houses.
Could anyone please advise me if this is the case here or is it that my RE agent is trying to talk me into making offers without conditions to his benefit. He mentioned that I should be bringing in Inspectors prior to making an offer as a sloution.
Thanks alot,
Sam