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Termite Reports & Surveys - http://www.dealmakerscafe.com Forums

Original message

JWL Properties

"Termite Reports & Surveys" , Sun 28 Jan 23:56

I was reviewing my FSBO course today by Ron LeGrand and he mentions in one of the tapes that when we can create owner financing we have minimal closing costs, because there are NO SURVEYS, NO TERMITE REPORTS OR ANY OF THAT CRAP THAT YOU DO WITH BANK FINANCING !

I thought that we should ALWAYS get a termite report before we buy.

What have I missed in that message?

Is there anytime other than buying wholesale (ALL CASH) that we can pass on the termite report?

Thanx,

JLaVerdi {Phx_Az}

Replies:

Lynn
Moderator

"Re(1):Termite Reports & Surveys" , Mon 29 Jan 06:46

The reason LeGrand says that is that you are not "required" to get a termite report when buying, and you are not "required" to give one when selling on owner financing. Some people, especially real estate agents, believe that the "law" requires a termite report when actually it is the lenders that require it.

You have to make the call yourself to determine whether it is worth the expense. We only pay $40 for a termite inspection, so it is worth it to us.

We don't get surveys unless there is a real good reason that justifys it.

Happy Investing!
Lynn

Knowledge is important but all the knowledge in the world is worthless without action! How many offers did "you" make today?

arlie

"Re(2):Termite Reports & Surveys" , Mon 29 Jan 09:43

Which brings up a question. What about appraisals? I have noticed Cafe Users are putting the appraisal value of the home on their posts. I have also noticed when I go to the court house the appraisal value is way off because the only info they have on record is the appraisal value when the house was sold to the current owner.

I am confused as to when we need to obtain an appraisal. Is it after we have "acquired the deed" and we are currently doing our due diligence? Do we also need to do an appraisal before we make a decision as to whether or not to buy the property? Wrong question. Get the Deed First, Ask Questions Later Right?
Please clarify.

Keep Smilin'
http://arlieanderson.homes.com

will

"Re(3):Termite Reports & Surveys" , Mon 29 Jan 10:19:

Arlie
the asessed value in the county records is not accurate and cannot substitute an appraisal .it's only a number used for tax evaluation and it's usually lower than the real value .in my county they update only once in 3-4 years (or when a property is sold , they automatically set the sales price as the asessed value)
initially you don't need appraisals but accurate comps.they should give you a good indication if it's worth pursuing the deal or not , before even going out and see the house .
you need appraisals when you sell to a conventional buyer and you need to avoid surprises .if you establish a good relation with an appraiser , he will tell you in advance how high he can go , and you can decide if/how you gonna help the buyer w/getting the mortgage.
just make sure you pick a bank w/your appraiser on their list.

[this message was edited by will on Mon 29 Jan 10:24]

BenTN

"Re(1):Termite Reports & Surveys" , Mon 29 Jan 00:17

Hello,

You should always do your home work aka: termite/title work, the expenses are alot less when you order and not some bank. I only do termite on the older homes. Usually the last closing if recent will have a report. You can also ask the home owner for his inspection report. This may show when last certified or treated.

LeGrand is famous for leaving ya hanging. Still has alot of info, just doesn't lead ya down the path far enough.

Hillbilly Real Estate Entre-manuer

Ben