Having represented dozens of buyers purchasing short-sale and foreclosed properties and having the opportunity to review more than a hundred purchase and sale addendums offered by banks (take a look at my earlier blogs: Bank Trick #1, Bank Trick #2, Bank Trick #3, Bank Trick #4) I thought I had seen it all.
The newest issue of concern when buying foreclosures and purchasing a foreclosed property actually has nothing to do with the bank you're buying it from as much as it does dealing with the code enforcement department of the town the property is located in. For properties (single family/multi family) where the electrical service provider (ie. PSNH-Public Service of New Hampshire) has removed the electrical meter from the side of the home, THE NEW OWNER MUST BRING THE WIRING SYSTEM UP TO CODE before the town will re-issue a certificate of occupancy. This can be a very expensive cost to a buyer so make sure you check with the town before entering into a contract which might have a $3,000-$7,500 hidden "cost" after closing.
Buyers-make sure you are using an agent who has been through the process of representing a buyer purchasing a foreclosed property before. These transactions require a different skill set and an unprepared/uneducated agent can cost you money in the long run. As always, I'm always happy to answer any questions concerning this or other matters regarding real estate.
Wishing you all the best life has to offer,
Joshua Matthews, Licensed Realtor in NH & ME
Director, Strafford County Board of Realtors
Keller Williams Coastal Realty
Portsmouth, NH 03801
(603) 781-4030
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