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QuestionArt
"What makes buying a foreclosed property risky? Select two.
A. The title fee is set later and can’t be negotiated.
B. They’re usually sold ""as is.""
C. Usually, you can’t inspect the home in advance.
D. You must use an adjustable-rate loan for purchase."
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Answer
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Step 1: Understand the question and the options given.
The question asks for two reasons why buying a foreclosed property can be risky.
Step 2: Identify the risky aspects of buying a foreclosed property from the options.
Option B: They’re usually sold "as is." This means that the buyer assumes all the risks associated with the property's condition and does not have the opportunity to request repairs or improvements. This can lead to unexpected repair or maintenance costs. Option C: Usually, you can’t inspect the home in advance. This lack of transparency makes it difficult for the buyer to assess the property's condition, leading to potential repair or maintenance costs.
Final Answer
1. Foreclosed properties are typically sold "as is," making the buyer responsible for any necessary repairs or improvements. 2. Buyers often cannot inspect the home in advance, increasing the risk of unforeseen repair or maintenance costs and the discovery of serious issues.
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