Inspecting a Foreclosure Property

Post date: Apr 03, 2016 7:43:23 PM

"You should always get a home inspection before buying a property, especially when you’re buying a bank-owned foreclosure. In such cases, it may be impossible to find out how well the home was cared for, or whether major damage was done right before the past owners left the property. Ask the bank how much time you have after your initial offer to have an inspection performed, and schedule one immediately. If it goes well, you’ll enter into the deal with peace of mind and a better idea of what repairs you’ll have to deal with. That alone is worth the price of an inspection. If the inspection reveals a costly disaster, you can back out of the deal and save tens or even hundreds of thousands of dollars."

Source: The International Society of Certified Home Inspectors website

Foreclosures are tricky, but an inspection is even more important on these properties, considering the amount of time the house has gone without maintenance and upkeep.

Some things to consider; most foreclosures have been "winterized" by the bank, this means the electric, gas/propane an water have been shut off. The Inspector can look at the Hot Water tank, Electric Panel and Furnace/Boiler but he will not be able to check the color of the flames for good heat exchanges,hot water and pressure, the light switches, reverse polarity etc. A good inspector will write this up in the report and should not disclaim the entire system. Also the inspector should charge you anywhere from 100 to 200 dollars less.

For the long term, a foreclosure property can be a big value, without an inspection, buyer beware.