Buying a Foreclosed Home in Sumter, SC Part 4
Inspections with Electrical Power….. Please Connect the Utilities
Many times it is the responsibility of the purchaser to have the utilities turned on at a Foreclosed property in Sumter SC and many other areas of the country for inspection purposes. If you have been following my series, you are aware that I am purchasing this foreclosed property for an income property. So I am the one in the hot seat. When I completed the offer, I had a 10 Business Day Due Diligence. When everything was agreed upon, the addendum from Fannie Mae said 10 calendar days for inspections. I was still thinking this was no problem until it took me until Tuesday afternoon to get the approval for the power to be turned on.
Then the stumbling block came up in the email from the Listing agent. The property had not had power in over a year and would require an inspection and a permit from Sumter County to have the electric hooked up. Since the property is not in my name yet, I have to have a licensed electrician inspect the property, apply for a permit, have the county inspect the property and THEN Duke Power will accept the application to have the electrical power restored to the house. The whole inspection process will eat up three days! Well, I have figured it out and by the time I am able to apply for the power to be turned on, I will be past my due diligence period.
It is my personal decision to go forth as the wiring underneath the house in the crawl space is intact. I also talked with the County Codes and unless there is a code violation, I will not have to have the exterior meter base and interior breaker panel replaced as I had been told I would. Phew. That was an expense I didn’t want. As I said, this is a personal decision, I would tell any of my clients to have an electrician go through with the inspection prior to closing and have the power turned on. I understand the risks involved with not having the power turned on and I am willing to accept these risks and move forward with the contract.
But, I have learned a lesson for the next foreclosed property. We will negotiate a longer Due Diligence period or make sure it doesn’t fall when two weekends eat up four out of the 10 days! In the meantime, we will continue on. Please continue to follow this journey with the series of posts I am writing.
Buying a Foreclosed Home in Sumter, SC is an ongoing series of posts, where I am purchasing a foreclosed property to turn into a rental income property. Follow the posts below to experience the entire process with me.