The Need for an Inspection Contingency when Purchasing Short Sales and Foreclosures

By
Real Estate Agent with Keller Williams Heritage Realty

Regardless of whether you purchase a brand new home from a builder, a re-sale home from a traditional seller, a short sale or a bank-owned property (a foreclosure), one of the most important steps in the buying process is to have the property inspected by a certified, licensed and insured Home/Building Inspector.

While you may elect to hire a licensed roofer, plumber, electrician and HVAC contractor to individually inspect these four main components (considered a Four Point Inspection), there are many certified Home/Building Inspectors who can & do provide a comprehensive inspection of the property by evaluating the below componets & more:

  • Roof
  • Plumbing
  • Electrical
  • HVAC (Air & Heat)                                      
  • Water Intrusion                      
  • Pool Equipment
  • Operational status of the appliances            
  • Structural issues                     
  • Cosmetic issues

Many properties that are being marketed as short sales or foreclosures are being sold "as-is" with a "right to inspect," which typically means that a Buyer is assuming all of the risk when purchasing the property and that the Seller is not willing to make any repairs or give financial concessions for such repairs...which is all the more reason why a Buyer should know what "issues" the house has and how much money will be needed to correct those "issues."

More importantly, many lenders will not loan money on a property with wood rot or termites, roof leaks, active water intrusion, faulty plumbing or electrical wiring, structural issues, etc. because those properties are considered higher risk (especially if the Buyer is purchasing via a FHA or VA loan program).

With that being said, Buyers should make sure that their Contract for Sale and Purchase includes an "Inspection Contingency"which allows for them to have a specific amount of time to conduct any inspection they want, to secure estimates for any repair that might be needed and to withdraw from the Contract if they are not satisfied with the inspection results or the costs associated rectifying those repairs.

If you are a Buyer who wants to purchase a home in Seminole or Orange County, Florida and would like more information on how a "Inspection Contingency" can protect you, call/text me at (321) 377-0157 or email me at LaShawn@LaShawnNorden.com

LaShawn Norden, PA, REALTOR, Advocate for Buyers & Sellers in Orange & Seminole County,             (321) 377-0157, RE/MAX Central Realty, LaShawn@LaShawnNorden.com, www.LaShawnNorden.com

Posted by

 

Direct: (321) 377-0157, LaShawn@YourHomeOurPriority.com Certified Distressed Property Expert (CDPE), Accredited Luxury Home Specialist (ALHS)  & THREE-YEAR Five Star "Best In Client Satisfaction" Award Winner! Click HERE to visit MY WEBSITE!  

Priority One Homes Team @ Keller Williams Heritage, Offices in Lake Mary, Longwood & Downtown Orlando, Florida

SEARCH MLS HERE for CENTRAL FLORIDA Resales, Foreclosures, Short Sales, New Homes, Condos, Townhomes & More.

Should you or someone you know be interested in buying or selling Real Estate in Central Florida, I'd love to earn the business! I am never too busy for referrals!

 

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Buying
Location:
Florida Seminole County
Groups:
RE/MAX Active Rain Bloggers
Short Sale REALTORS®
Seminole County Florida
Local Expert
Club Chaos
Tags:
orange county
asis
home inspections
foreclosure
short sales
seminole county
lashawn norden
inspection contingencies

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Ambassador
342,345
Paddy (Patricia) Pizappi
Better Homes and Gardens Rand Realty - Pine Bush, NY
Real Estate Associate Broker Hudson Valley NY

Inspections are absolutely vital even on "as is" sales.  I always write for buyer information only on those types of listings but I insist that the buyers have the opportunity to take a professional closer look at things if they choose to.  Some don't and I insist they acknowledge my recommendation so that I can CMA.  Good post LaShawn

Mar 16, 2009 12:05 AM #1
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
91,655

LaShawn Norden

REALTOR, (321) 377-0157, Your Real Estate Advocate in Central FL
Ask me a question
*
*
*
*
Spam prevention

Additional Information