Foreclosures may sometimes seem like a great deal, however, once you factor in all the cosmetic work and hidden repairs (that usually need to be done prior to occupancy), the price sometimes isn’t as good as it seems…not to mention hidden issues that can be costly. In most cases foreclosure homes are sold “as is” with no repairs – the occupant can do their own inspection prior to purchase risking the loss of the inspection cost (about $300-400), but that’s a small price to pay in comparison to finding a major issue after occupancy!
Don’t get me wrong, there are sometimes some exceptional deals with foreclosures. In my opinion the two main key factors are;
1) Have a quailified home inspector give the house a thorough inspection prior to purchasing so there are no unpleasant surprises, and
2) Prepare to have liquid cash up front to make the home liveable prior to occupancy, i.e. new carpet, paint, repairs, appliances, cleaning, etc. — Angela
Daily Real Estate News June 11, 2007
Buying a Foreclosed Home? Get Ready to Clean
Owners of houses in foreclosure often leave them in poor shape, including abandoning desperate pets and rotting garbage, say properly inspectors and real estate professionals.
“It’s almost every day now that we see a [foreclosed] house in awful condition,” says Scott Mitchell, president of National Property Inspections, a company that provides home inspections and assessments in the Las Vegas area. “They know they are going to lose their house, so they have no pride of ownership anymore.”
He says some home owners will leave the water on so there’s flooding and mold, or they’ll tear the chandelier or the ceiling fan out of the ceiling. He’s also seen doors and walls kicked in, making it easy for bugs, rodents, and other critters to take over the home.
Pets are often the real victims. In May, authorities found 23 abandoned animals in a house in Lake Carmel, N.Y.; three pigs trapped in an Oregon home; 20 birds in a Lorain, Ohio, house: 24 horses on a Bixby, Okla., property; and more than 60 cats in a house in Cincinnati. All of the properties were in foreclosure.
Source: BusinessWeek Online, Maya Roney (06/07/2007)
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