Just this week, I had a sale fall apart due to buyers with unrealistic expectations about the home they were purchasing. When you are buying a foreclosure, your standards about the condition need to be more relaxed than on a traditional sale. Bank owned properties come with deferred maintenance issues… period. Even move-in ready, seemingly perfect houses can have troubles. Many of these homes have been vacant for months, or had former owners that didn't have the money to maintain them.Items of a cosmetic nature…scratches in the wood floor, stains in the carpet, trim missing in the living room, bedroom light fixtures needing bulbs, etc. I personally don't think they belong in an inspection report… especially on an REO property. A lot of these homes have taken a beating, and it's typically evident when you walked in the door. These types of items are irrelevant to the bank (they usually already know about them from the pictures the listing agent takes prior to putting on the market) and they should be to the buyer. If it was visible at the time you wrote the offer, and you signed the addendum stating the property is being sold "as-is"… what you see it what you get.
Purchasing in the Pacific Northwestbrings about another set of issues, due to the amount of precipitation we receive and our weather patterns. Homes in the Camas/Washougal area, and the Columbia River Gorge get a lot of wind and heavy rain in the winter. The extra harsh conditions are tough on a home's exterior and require maintenance more often.Some of these items are a simple fix; some can turn into major repairs. Either way, I see one or more on this list in 75% of the reports that come across my desk:
- Water in the crawlspace
- Furnace needs to be serviced and air filter changed
- Dry rot near tubs, toilets, and decks
- Broken window seals
- Roof failure, leaks, missing shingles and/or flashing
- Broken pipes due to freezing
- Missing appliances, fixtures, disposals, copper piping
- Gutters need to be cleaned
- Missing downspouts
Chimney needs cleaning
Please remember when buying a foreclosure… it is highly likely that the home inspector will find a few common issues associated with deferred maintenance and/or abandonment. You need to be prepared to deal with those matters BEFORE you make an offer, just in case the bank will not fix anything. 11 out of 12 of the financial institutions I work for have taken into account what needs to be done and the home has been priced accordingly... please know what you are getting in to, so you aren't disappointed over and over again by having unrealistic expectations!
I would love to hear from agents in other parts of the country….
What are typical/common repair items in your market area?
