One of the main problems that we run into with clients who are in the market for short sale and foreclosure homes is the utilities. At the time of the appraisal inspection, it is required that the utilities be on in the property so that the inspector can make sure the home is safe, sound, and habitable.
Also, remember that when making an offer on a home that’s been occupied by the seller, the owner has to provide a seller’s disclosure. This report will give you a summary of the property’s condition from the seller’s standpoint. A foreclosed home will not have a seller’s disclosure statement, since the bank that owns it has never occupied the property. You won’t get any inside information about the condition of the home you’re buying.
Sometimes repairs are needed on short sale and foreclosure homes. Banks don’t usually want to spend more money to make those repairs, so you might have to pay for them yourself.
There are a few ways you can get around some of these barriers, but it’s important to consider these points if you’re thinking of purchasing a foreclosed or short sale home. Even still, buying one could be a great way to get a property for well under market value, whether it be for your primary residence or investment property.
If you have any questions, don’t hesitate to reach out to us. We’d love to help you.