After all its being sold as is.....
There is a reason why these homes are referred to as "distressed" properties. Many owners that go into foreclosure have been struggling financially, which usually means that the house has not received needed repairs or general maintenance for a while. Some homeowners who lose their property to a lender frequently damage the property. After the owners leave the property frequently we see the homes have been neglected or poorly winterized. Winterization was especially important during the December freeze we had. We have inspected homes that claimed to have been winterized and found freeze damage.
Bank-owned foreclosure homes are usually sold "as is," which means that the 10 to 30% you just saved on the purchase price can easily be eaten up by unforeseen repairs — frequently many of those issuesat not apparent to the buyers when they walk through the home. However "as-is" does not refer to the price the buyer is paying. It is important to understand that he bank's pricing of the home reflects the "assumed condition" of the property.
The savvy buyer will want to gather all the information on the home. Initially that can be the documented history of the home. Tax records and building permits are a good start. A CLUE report will give you the insurance history of the home. Many insurance agents will provide that free of charge. If neighbors are available they are great source of information on the neighborhood and the home. Lastly, a detailed home inspection will complete the picture as to what the home is and issues that will need to be addressed.
So the quick answer is YES. Also we are seeing many lenders require a copy of the home inspection as part of the underwriting process. The inspection report can also be used as a tool to justify the offer price or negotiate concessions.
//Rick
Rick Bunzel, CRI
Pacific Crest Inspections
NAHI Member of the Year 2008
NPSAR Affiliate of the Year 2006-2007
WWW.PacCrestInspections.com
360-588-6956
Fax 360-588-6965
Toll Free 866-618-7764
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