REO inspections matter more than most

A home is a big expenditure for everyone. In an REO transaction there is enough uncertainty around finance, appraisals, bank communications and other issues to make the escrow period nerve wracking. If you have to add uncetainty about inspections into the mix you can end up with chaos that benefits nobody.

I receieved a great set of tips about REO inspections from one of my local inspectors who has just joined ActiveRain. I want to welcome Peter Crawford to the site by reprinting his REO Advice.

Banks are infamous for dragging out the negotiation process at their own tedious pace and then demanding that your buyers get all of their inspections done within seven days. This puts a great deal of pressure not only on the buyer, but on you the agent. Here are a few tips to help you make your REO inspection go more smoothly:

REO Inspection Tips:

1. Make sure the utilities are all on. The last ting you want is to arrive to your inspection only to discover that the inspection cannot be performed because there is no electricity, water or gas service. This happens regularly with REO properties due to the fact that more often than not, utilities have been shut off due to non-payment of bills by the previous (foreclosed) owners. Don't wait until your offer is accepted to ask whether the utilities are on or not. Let the listing agent know that all utilities must be on by day one of your inspection contingency period.

2. Don't forget the pilot lights. Usually, there is at least one or two pilot lights that must be lit if gas service has been interrupted. Make sure that any pilot lights (water heater and furnace are the most common) are lit before the inspection.

3. Book your inspection right away. With the market heating back up, my schedule (and those of other good inspectors) have started to fill early.

For those in Sonoma County who are local enough to use Peter, here's some extra advice. With me you have the added advantage of booking online. This means that the moment you enter escrow you can go online, fill in the property specifics (address, age, square footage) and then choose a date for your inspection. Of course, you can always call me, but the online scheduler is available all the time - even nights and weekends! If the scheduler says there are no appointments in the time frame you specified that means that all my regular slots are full. In that case, just call. I can usually fit you in late in the day, outside regular hours if the standard appointment slots are full.

Peter Crawford, CCI

A1 Inspection

Phone: (707) 874-9557
Email: peter@a1homeinspector.com
Web: www.a1homeinspector.com