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Buying or Selling a Home/Inspection on a Foreclosed Home

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Expert: - 1/26/2008


Question
Greetings - before getting an inspector out to look at the property, what are key items to look for when inspecting a home that's foreclosed?  A lot of times these homes go fast and offers have to be made quickly, but I don't want to jump in if I don't know what I would be getting into.  How do you check for the quality of the roof, floor, a/c, water heater, and other major issues of the home before a detailed professional inspection is made?

Answer
Hey, Jennifer.

Your question requires an answer that is far too long and complicated for this forum, and determining "the quality of the roof, floor, a/c, water heater, and other major issues of the home" actually is the purpose of "a detailed professional inspection," so gaining that knowledge without the inspection is somewhat difficult for the average person.

I have done 33 home inspections in January 2008 so far, and 31 of them were foreclosures. Out of those, 28 were done before an offer was place on the property simply because they wanted to know about everything before they tied up earnest money with a purchase offer. If you're looking at a foreclosed property, you might consider doing the same. However, if you don't, typical purchase offers, including those on foreclosures, include a home inspection contingency that allow you to opt out of the purchase contract if there are too many problems, especially if there are problems that the bank doesn't want to deal with, or if it is an as-is sale. Consequently, the only thing that should be holding you back from making an offer on the home with an inspection contingency would be lack of credit and lack of a down payment.

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Russel Ray

Expertise

Through home inspections, I provide an education about real estate. I'm one of those rare home inspectors who has been involved in real estate in many different capacities: as a Realtor (in Texas), as a property investor/flipper, as a teacher, and as a marketing expert (for Realtors and home inspectors). I believe that my experience as a Realtor and property investor provides me with a different viewpoint about home inspections in that I work for my Clients, but when there are other people involved in helping my Clients, then I firmly believe in helping them, too. That includes Realtors (both the seller's and the buyer's), repair professionals (e.g., plumbers, electricians, etc.). If I can get all the players (seller, seller's Realtor, buyer, buyer's Realtor, and repair professionals) playing in the same sandbox together to accomplish goals as a TEAM (Together Everyone Accomplishes More), then I believe I have succeeded in my job as a home inspector. My profession is, in my opinion, much more than simply documenting the condition of a property and then take the money and run. I am also a rare breed in that I don't believe that one inspection fits the needs of all Clients, and I have led the industry in understanding that fact. For example, the goals of a property investor are far different than the goals of someone buying a property to live in. The goals of a seller (a pre-listing inspection) are far different than the goals of a buyer (a pre-purchase inspection). To that end, I offer 14 different types of inspections, e.g., STANDARD, LIST, RENTER, BASIC, MAINTENANCE, SPOT, and more. I believe in giving the benefit of the doubt to all professionals in whatever industry they represent until they prove me wrong.

Experience

Over 42 years in all aspects of real estate--building homes, renovating homes, inspecting homes, Realtor.

Organizations
National Association of Certified Home Inspector, Better Business Bureau of San Diego

Education/Credentials
Graduate of Texas A&M University; College Station, Texas

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