The Importance of Cheap Foreclosure Homes Inspection

For buyers who want to enjoy the profit potential of cheap foreclosure homes, be sure to have them inspected. It could spell the difference between success and failure in foreclosure investing.
| Wednesday, September 14, 2011

Buying cheap foreclosure homes is certainly one of the crazes these days. It is not even surprising considering how affordable these homes are, with many of them being sold for at half of what they are currently worth in the market.  If you think about it, you also get to enjoy instant equity. 

Of course, aside from the savings, buyers and investors choose these foreclosed properties because of their impressive return potential. There are plenty of investment opportunities you can explore such as flipping homes or buy-and-rent. Obviously, to guarantee your success in whatever business endeavor you choose, you need to do your homework - one of which is inspecting the property.

Without a doubt, ordering a professional home inspection before you close the deal on your foreclosure home purchase will mean saving money in the long run. Since foreclosed properties are sold in whatever condition they are currently in, you can expect them to be in need of some sort of repair. An inspection will unearth these problem areas in the home and will give the buyer an idea of what the property’s true physical condition is. 

What to Inspect 

Mold

If you happen to buy a bank foreclosure which has been abandoned and closed up for quite some time, there is a huge possibility there is mold infestation behind the walls. Other factors which can contribute to this problem include leaky faucets or humid climate, both of which create the perfect environment for mold growth. 

Leaks

Again it is common for a vacant home to fall into disrepair. You can expect the valves and other plumbing to rust and lead to leaks. Hoses can also dry up and become brittle. Meanwhile, tree roots can cause damage to old sewer lines so they should also be inspected since they too may be prone to leaks which can be a huge problem if undetected early.

HVAC

The problem with inspecting a bank foreclosure is the utilities are usually turned off. For certain, it would be a challenge to check the heating, ventilation and air conditioning system is there is no electricity. Your inspector can probably handle such challenge by checking the year or model the unit was built and look for maintenance records. Damage to the HVAC unit is also possible if it has been left in a cold environment and has not been turned on for some time.

Unwanted Guests

If the bank foreclosure you are buying has been vacant, it is likely to have attracted animals or even vandals. The animals would have chewed the walls and the wirings while vandals would likely be more interested in stealing whatever part of the home they can sell.

At the end of the day, you need to understand how important an inspection is when buying bank foreclosures for it allows you to be fully-aware of what you are paying for and enter the sales agreement with open eyes. You can even use the detailed inspection report to negotiate with the seller and ask for more discount since you be spending on repairs.

   
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