Some Of The Pitfalls Of Buying Foreclosures
As a Real Estate Broker, one of the biggest mistakes I see people making when buying real estate foreclosures here in Salt Lake City, Utah from banks or mortgage companies is not having a thorough home inspection done on the property.
Sometimes buyers feel that getting a home inspection is not necessary on a newer home. What could possibly be wrong with a foreclosed home that is only one or two years old? Well, there are a lot of hidden problems that could have gone unrepaired by the owners because of their financial situation.
One notable issue could be stucco. There could actually be wood rotting underneath because of stucco that was improperly applied to the house. A visual inspection of the home will not even show the problem.
So now let’s talk about home inspections and utility service. In order to protect your interests as a home buyer, you must do a thorough inspection on the home.
Home inspections in the Salt Lake City area cost about $ 250 for an average size home. This is money well spent, especially when dealing with foreclosed properties.
Before you do your inspection, you will want to make sure the utilities are turned on. If they are not on, you will need to get permission from the bank to have them temporarily turned on.
Once you have permission from the bank, then you need to contact the appropriate utility companies and tell them you want temporary service at the subject address in your name. This will be at your expense. So be prepared to give any financial information the utility companies may require. Remember from their perspective, you are like any other client asking to put service in your name.
Having the utilities turned on is a necessity in order for the home inspector to do a thorough examination of the property. Without gas, power and water the inspector is not able to check the furnace, water heater, plumbing, lighting fixtures, cooling system, electrical outlets or any other major appliances. So you can see that to pay for a home inspection without making sure the utilities are on would be a total waste of money.
A good real estate agent will be able to recommend several reliable home inspectors for you to choose from. They will be able to walk you through this whole process of getting permission from the bank, scheduling the inspection, etc.
Dont make a big mistake thinking that because the house looks good from a visual perspective, that a thorough home inspection is not necessary.
This will be one of the biggest investments of your life. Dont go into it blind. Paying the price for a proper home inspection and the cost of the utilities during the inspection process is well worth it to protect your investment.