Don't buy a distressed property without this....

With all of the distressed real estate available out in the marketplace(REO's, Short sales, etc) one might find it very tempting to jump in and try to snap up some bargain properties. Whether you are a seasoned real estate investor, or a newcomer to the field, caution must be taken when evaluating the property. Unless your intention is to completely tear down what you are buying, a complete home inspection is a requirement.

Many of these REO's and Short sales are advertised "As-Is". With this in mind you may say to yourself that there is no negotiating with the bank, so why bother with a home inspection. The answer is very simple. First off, a home inspection is not really meant to be a tool for negotiations on the property. It is indeed less of a negotiating tool with a foreclosure property. A home inspection will give the buyer a complete picture and understanding of the true condition of the property. For example, with today's conditions, many foreclosures sit empty for many, many months, sometimes even years. With the lack of maintenance on that home, numerous issues may certainly arise. Some common trouble spots found are:

Moisture intrusion and mold 

Termite damage in main beam

Non functioning mechanical system

Cracked or burst water pipes

Missing piping due to vandalism (cooper mainly)

Electrical issues

Structural damage

A recent foreclosure we inspected revealed a main bean that had been severely compromised due to termite damage and definitely needed to be replaced.

The bottom line is that just because a home is being sold "As Is", and the bank won't negotiate on its already low low price, doesn't mean that it is a bargain. Many of the foreclosed homes we walk into, have so much damage and repairs needed, that the buyers ultimately realize that its a project that will be to big, and much more costly than they could have even imagined. Buyer beware...do no forgo a home inspection...it may cost you much more that the inspection fee.

How's My House Home Inspections serves your full inspection needs for distressed properties. We work with out of state investors and serve as eyes and ears for those transaction.