I've always been reminded to "keep things in perspective", and in looking at REO properties, it is important to do the same thing by all parties involved.

As an inspector, my job is to accurately transfer knowledge to the client about the condition of the property. I'm not there to "find things wrong", and not there to "make sure the deal isn't jeopardized", rather to paint an accurate picture of conditions noted at the time of the inspection.

I'm often asked what makes a perfect inspection in my eyes, and my answer is "EVERYTHING is disclosed, AND the deal goes through".

Look, I KNOW I am there to serve the client, but I also know I am there to serve the Realtor. Why? Because, In choosing to work with only professional Realtors, I know that many times they know better than the client themselves what is best for them.

Huh?

You heard me right! Sometimes the Realtors knows what is better for the client, than the client does themselves. Its really no different than a parent knowing what is best for their child. Its not about actually being better, or being smarter, or anything else that translates into a comparison of intelligence.

Its simply that Realtors are much more experienced when it comes to homes, and clients many times let their emotions get in the way of doing what is best for themsleves.

A Realtor will tell you the three rules of real estate are location, location, location. Any competent inspector will tell you the three rules of home inspections are quality, quality, quality.

Quality is the one thing that best stands the test of time. In supporting professional Realtors who help their clients find a potential home in a good "location", I can be assured that having made that decision, it is now my job to help the client determine whether they have bought a "quality" home.

It is this combination of "location" and "quality" that yields a happy client, and we all know what that means in terms of building business relationships ... REFERRALS!

So, what does this all have to do with REO properties?

REO properties require thinking outside the box in deciding whether a house is a "quality" home. Why? Because there are simply more variables involved, namely the fact that the seller is no longer a human being, but rather a faceless asset manager who very likely has no clue of the actual goings on in the community. They set prices based on quantitative data, and that many times leads to skewed valuation.

Sometimes they overprice homes ... and sometimes they underpriced quality homes in great locations :)

My job is to help put the quality factor in perspective for the client. If they are buying in a great location, the house needs $2,500 in work, but is priced $25,000 under market, its my job to make sure they keep things in perspective.

A pure inspection would stop at the point of explaining what is wrong, and that for about $2,500 the house should be safe to live in. That in a vacuum might be enough to have a client walk away from the property, because they are afraid of tackling $2,500 in repairs.

But, if explaining to them that the $2,500 really equates to spending about $50/week for a year, and putting in some hard work towards their new home, then many times the client is able to look at the bigger picture, and imagaine the point in time a year later where they are settled into their new home, content in the fact they didn't let immediate facts upset a long-term decision.

Realtors need to make sure their inspectors are doing their part to accurately paint a picture of the condition of the home for their cleints. I work very hard with my Realtors clients to ensure that I do, because the cleint deserves that. I also choose to pick the Realtors I want to work with, because I don't want my name invloved with any less than honest commitment to the client.

Make sure when doing home inspections on REO properties, the cleint remains focused on the big picture. I'm three years into the "big picture" on my own personal home, and it STILL needs a lot of work. But I know one day I will be done, and I will have made the right decision!

Find me on the web at http://www.inspect.net/

Regards, Jeff Bond
"Serving Those Who Serve"

Sometimes I get questions about matching stucco color coating with a similar paint color.

Here is California, one of the major producers of color coated stucco is a company called La Habra. That information can come in very handy when trying to exactly match a paint to an existing stucco color.

A few examples of why you would want to do this are:
1. You need to re-paint just one wall, and don't want the paint to conflict with the existing stucco color coat
2. You want to paint over all the stucco with the same color, to seal the walls against moisture penetration
3. You want to paint over all the stucco with the same color, to eliminate permanent staining of the color coat
4. You're anal, and you just don't like to look at water saturated color coated stucco (there i am :)

Here's a few thoughts to consider if you are ever in this position of deciding how to handle this situation:

1. Get the color code directly from the builder (very do-able if the are still building homes in the development, then it becomes nearly impossible).

2. Assume the stucco is manufactured by La Habra (very possible, they are very commonly used out here in California), and see if you can match the color to their color charts
 
ref: http://www.lahabrastucco.com/color_chips.htm

If you know the year the house was built, you can also probably get color chips for that specific year, in case the color is no longer being produced.

3. Flake off some of the stucco, take it to a paint store, or home improvement store paint department, and computer color match it.

Using options 1 or 2, you would then have the color code, which could probably be used to exactly match a paint to the stucco color.
 
Using option 3, you would have a paint color that very closely resembles the color of the stucco.

In the end, all three options will provide good results, so in terms of best bang for the buck, i would choose option 2, then option 3, and forget about option 1 (too difficult, and not enough benefit for the work involved).

If you are in it for the long haul, consider using an elastomeric paint (more expensive, but much better coverage, much better at sealing the stucco, and much better at resisting cracks from re-opening in the future).

Best wishes, let me know if i can be of any assistance.

Find me on the web at http://www.inspect.net

Regards, Jeff Bond
"Serving Those Who Serve"

One of the biggest obstacles I'm coming across in the inspection process is a home that is not prepared to be inspected.

Some of the biggest problems are:
1. No power to property
2. No water to property
3. Physical damage to the property (including vandalism)

What can Realtors(R) do to help minimize this?
1. Call the listing agent to confirm services are on
2. Call the City to re-confirm water service is on
3. Call the utility company to re-confirm electric service is on

One service that is preferred to be on, but can be worked around is gas service. If the gas is off, you can always call the utility service provider, and request the gas service be turned back on. For liability purposes, they will always do an evaluation of the gas devices to ensure they are in good working order. The key is to make sure you do this before the close of escrow, so if there is a problem, you can do something about it before the deal closes.

Physical damage is hard to prevent, and comes in several flavors:
1. Copper wiring cut from house preventing operation of electrical systems
2. House plumbing fixtures & pipes vandalized preventing operation of plumbing systems

Without water or electricity, its like trying to check out how well a car runs without gas ...

The biggest reason I can provide for doing just a little extra legwork by confirming services are on is that you only have a limited amount of time to perform all your due diligence inspections. Especially with bank owned properties, that period can be especially short, so there is little to no margin for error in the process.

Of course, the other school of thought is "who cares, its an as-is deal anyways?"

That argument holds up well in the short run, but quickly loses value when angry cleints call you after the deal has closed saying "I know it was an as-is deal, but I dind't know THAT was wrong, otherwise I NEVER would have bought the home"

Think this doesn't happen? Simply ask any professional Realtor(R) who has been in the business for any period of time, and they can usually personally testify to how often this happens.

Inspections are part of the process because they allow clients to negeotiate with all the facts laid out in front of them. Imagine having to pick your spouse having only some of the facts, its not quite that drastic, but you'd be surprised just how unhappy a client can become if they feel they were not provided complete disclosure before making the final purchase decision.

Here's to your business success, committed to serving you and your clients with the utmost of integrity.

Regards, Jeff Bond