Check it, jot it down now or run the risk of being blamed later!

With so many of the escrow transactions being foreclosed properties that are sold as is - where is - and if you the buyer is lucky there are some minimum repairs that the seller agreed to do.  As agents we have to be right on top of our responsibilities and inspect and make notations that will be in the records at the time of the transaction as well as for later on - when we get that call of complaint about something not functioning in house!  Department of Real Estate has a form that you need to fill out for this protection - use it!

This is the inspection you take the buyer with you and you "walk thru the property" and jot down what you see.  It doesn't take that much time and can be so valuable for you to have on file.  You complete the report and give it to the buyer to sign off on it.  Or you can rest assured you will hear from this buyer again!

New construction walk thru is much different from a foreclosure (as is - where is) transaction. Foreclosed you expect it to not in next to mint condition, however, a new construction you expect it to be damage free and all fixtures and structure to be in complete working condition, with nothing missing.

Sometimes escrows can get so drawn out that we just want the transaction to close and may think that it is OK to skip the final inspection because you have been out to the property so many times and you know what condition it is in.  NO good!  Put it on paper! Protect yourself. You must continue your agent buyer - protection all the way to the end of the transaction (or you may find yourself being blamed for something that does not work.... Or something that you forgot to Walk Thru with the buyer and check prior to close).

This is why the rules are set in place to do a Final Walk Thru on all escrow transactions.  Make a list of items that you will need to take a look at and make notation of the condition.

This applies even if there were no repairs done on the property and it was indeed sold as is, where is.  Final Walk thru is still a part of the transaction.

Questions to know

Were there any repairs that the seller agreed to repair?   You, the agent should have checked these where they were completed and yes, you will need to re-check with your buyer just prior to close of escrow.

Is there anything missing or damaged that was not there during first walk thru?  With all the vandalism going on around the country - check to see if someone came in and took any items since your buyer did the first inspection.  If yes, you will need to note the missing item - with the foreclosures if something is missing it is probably not the seller that took it.  Vandalism of some nature is probably to blame. Police report is required if vandalism is involved.

Once you confirm these items are intact, you should jot down all that you notice in the house.  Buyers sometimes will see you making these notations or hear you mention something and will want to revisit that item. 

Remember to keep your inspection simple if you are selling as is and the item of concern is not something that agreed upon to be repaired and it is not a safety issue.  Buyers want to get as much done as they can (understandable) - and if you know you will not be able to get the seller to do the repair or fix, please don't make promises to that buyer.  Repeat the Sold as is to them, but just make notation of the item of concern.

Start out in the front yard, back yard and do a complete walk thru the house.  Check doors, windows, locks, floors, walls, fixtures, AC, Heater, outlets, garage door opener, toilets, lights, trash out (this includes trash from side of the house), check the pool to be sure the pump works.  New homes structures: would include making sure it was built as promised, options are included, floors are meeting the walls correctly and all other items are in complete working order.  In a new building you will need to count the outlets too!

Note: New constructions you may have a better chance of negotiations with the seller, but be sure you get any agreement to make it right BEFORE close of escrow. If it is a foreclosure and there was no agreed upon repairs, it might a little hard to negotiate this late in the transaction, but it never hurts to ask and always be sure to write down the issue - document, document. And always document.

Happy Final Walk-thru and happy closing.

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