The foreclosure market has been very active and will probably stay active for some time. There are a lot good deals on the market IF you're willing to take the risk. Foreclosure sales are generally SOLD AS IS transactions. The mortgage holders generally aren't willing to bargain on price or repairs. But there are times when they might. Especially environmental issues like Mold, Radon, or Asbestos. They may add the cost to the sales price but the expense will be amortized over the life of the mortgage and not have to come out of your pocket in one large payment.
Unfortunately, some Real Estate Agents don't see the need for a home inspection on a foreclosure. They either never mention an inspection or they may say something like, "You don't need one. You'd just be wasting your money because it's an AS IS sale". On the other hand, there are many more realistic agents who take the opposite approach and advise you not to buy without an inspection because there may be expensive-to-fix problems that would be disclosed by a thorough home inspection, like one performed by Virginia Inspection Service, LLC.
My experience with foreclosures is this: If the owners couldn't make the payments, then it is unlikely they could maintain the house either. Whether the house is a Million-dollar custom home a $75K 50-year old bungalow, there will be fix-it issues and sometimes major deficiencies. My clients typically are aware that work will be needed but they wanted to know what they were getting into. Are there any problems that would make the house unlivable if they moved in?; Is there a chance the heat pump would last a few more years? Will it need a new roof soon? Is it basically safe to occupy?
A lot of the foreclosures I have inspected were owned by big-time Do-It-Your-Selfers who created real messes in the house. It is not unusual to find dangerous electrical problems, really messed up plumbing, and improperly modified heating and cooling systems. And of course, really poor construction techniques. The DYI problems were on top of the normal things a good inspector finds in a house like poor original construction practices, lack of proper code inspection, poor or no maintenance, water/moisture, and drainage. BUT, I have run across a few "Cream-puffs" that are fairly new, were well taken care of, kept clean, and when the owner had to leave, they went with as much dignity as possible.
Most repair issues found a foreclosure are also found in a standard Real Estate transactions. They are what I call "Fix-Its". There may be just a few or there may be literally pages of them. A Fix-it is not a major repair or replacement item like a bad heat pump, furnace, or roof. Some Fix-its may best be handled by a professional but many can be fixed by the buyer. Some people are pretty handy around the house and fully capable of making minor repairs. Others may not be really sure of the difference between a wrench and a screwdriver and prefer to let professionals take care of everything. So, how does this effect you and the purchase of a foreclosure. It comes down to the number and type of fix-it items, what you are comfortable with doing or not doing about them, what the costs would be, and how that would effect your bottom line.
Virginia Inspection Service performs a thorough home inspection and separates the major issues from the normal fix-up things. While we cannot guarantee things like a heat pump won't die a month from now, or the roof won't develop a leak, we will give you a detailed snapshot of the condition of the house and its systems at the time of the inspection so you'll have a very good idea of what you will be getting for your money. The Bottom Line - A few dollars spent now on a thorough home inspection by Virginia Inspection Service could save you a really big headache and thousands of unexpected dollars later.
This DIYer screwed up the HVAC system. Sucking in hot air from the attic (above) and blowing air out of the main furnace return
Fire just waiting to happen in the Attic
DIYer, wanted to vent cooking hood to the outside through the roof. Roof Truss was in the way. He just cut and removed the offending part. There was a 6-inch sag in the roof surface.
