Why Distressed Properties Require As-Is Cash Buyers

Do you own a distressed property in Pittsburgh that you would like to sell? Then you need to read this post. Having this information is important because it will save you a lot of time, stress, and money!

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As-is cash buyers do not have to play by the rules of banks. They are not forced to order appraisals, inspections, or have contingencies. There are no property condition requirements that must be met for them to buy the home. Working with a cash buyer allows for creative arrangements as well, such as sale-leaseback, seller financing, letting the seller choose the closing date, and permitting the seller to leave items behind of any size.

The biggest reason why an as-is cash buyer is needed for a distressed property is because banks now have strict lending rules. Let’s take a look at property condition requirements for the most common types of loans to compare against CASH:

FHA loan minimum property condition standards:

  • Safety: The home should protect the health and safety of the occupants.
  • Security: The home should protect the security of the property (as explained in the previous section).
  • Soundness: The property should not have physical deficiencies or conditions affecting its structural integrity.

VA loan minimum property condition standards:

  • Safe: safe mechanical system, stable porch/deck, stairways with handrail, deck with guardrail, no peeling paint on a pre-1979 home, no exposed electrical wires, no overloaded fuse box
  • Sound: no crumbling or cracked foundations, no large holes in floors, walls or ceilings, no exposed exterior wood, no dry rot, roofs generally need to have at least five viable years remaining with no leaks or damage, no moisture in basements or crawl spaces, properly working gutters/downspout, good ventilation, good lot drainage
  • Sanitary: safe sewage disposal, no termite/pest infestation, no mold, clean water supply

Conventional loan minimum property condition standards:

  • No cracks or settlement in the foundation,
  • no water seepage or active roof leaks, no curled or cupped roof shingles, missing shingles or tiles
  • no evidence of mold contamination, no inadequate electrical service or plumbing leaks
  • no evidence of termite infestation
  • no chipped or peeling exterior paint

 

PGH Property Buyer pays cash for distressed Pittsburgh properties and buys as-is. If you think that you could benefit from selling a distressed property to us, please contact us today. We would be happy to help you! Contact Liz: Liz@pghpropertybuyer.com or 412-530-5510. Feel free to use our contact form: CLICK HERE.

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