7/30/2009 8:41:00 PM Column: Inspection of foreclosed homes can be
a life-saver
By RANDY WEST Courier Columnist
I'm not an economist, but I'm a little worried about our economy. Last week I bought a toaster oven and they gave me a free bank.
I've had some questions recently about bank-owned properties, which I'll call "foreclosures" because that's easier to type than "bank-owned properties." These are sold "as is," so potential buyers are asking me if they should get a home inspection. I always say, "Of course!" I'm not sure what other answer they expected from a home inspector.
A lot of buyers are getting inspections on foreclosures: More than 80 percent of my inspections this year have been on foreclosures. If you're thinking of buying a foreclosure, here are some good reasons to get a home inspection.
• The bank has never lived in the home. They don't know anything about the physical condition of the home. If they supply a seller's disclosure about the condition, it likely states "unknown" about everything. Without a seller's disclosure you have no idea what you're buying. Even if you know the home is "as is," and you are willing to fix everything yourself, you need to know what to fix before you can actually fix it.
• You may need to know if you have some really major expenses coming up in the short term. Some sellers really pillage a home before they lose it to foreclosure. I'm not sure of the logic of this, but I've seen many homes where the sellers took the ceiling fans, light fixtures, doorknobs and sometimes the doors. I've inspected some homes where they took the water heater, furnace or air conditioner. In one home (I was told this had been a builder's home), the previous owner took the furnace, air conditioner, water heater, all the interior hardware, every light fixture and fan in the home, and some of the plumbing fixtures (a toilet, sink and whirlpool bathtub). The clients bought the home, but put less money down on the home so they had enough to make the home livable.
I've seen conditions that could cause damage to a home. I've seen quite a few homes where a water softener or a filter under a sink was removed, leaving uncapped water lines that would cause damage when the water was turned on. In one home the previous owners took their (presumably newer) dishwasher and shoved a 37-year-old Avocado dishwasher under the counter. They didn't connect the drain line. If someone operated the dishwasher, they would have flooded the kitchen cabinets and floor.
I've seen wires hanging out of walls and ceilings where light fixtures or fans were removed. These are safety concerns, of course, but are visible. I've also seen some hidden safety issues. In one home the previous owner changed out the water heater. The vent pipe didn't come low enough for the new water heater, so they pulled it down. This pulled the vent pipe apart in the attic, and it fell over against some paper-backed insulation. This would fill the attic with carbon monoxide and was a major fire hazard.
In another home, the previous owner actually removed both toilets, poured concrete into the drain lines, and reinstalled the toilets. After running water in each bath for a couple minutes, I had water backing up into the shower stalls. This was a very expensive repair - the plumbers had to remove the floor coverings and cut into the concrete floor to access the obstructed pipes. Imagine if those buyers had not invested in a home inspection! They would have moved in only to find they couldn't use any plumbing fixtures until they had plumbers come in and make a huge mess replacing the clogged pipes.
Please keep in mind these are just a couple dozen homes out of hundreds of foreclosures that I've inspected in the last year. Most foreclosures are in typical condition for their age, and most of them have been very good values. You should not be afraid to buy a foreclosure, or any "as-is" property. But a home inspection may be very important on these properties, even more important than when you buy an occupied home directly from the seller.
If a home inspection discovers a major expense, such as a hail-damaged roof that needs replacing right away (or concrete in the drain lines - what's wrong with those people?), you should not be afraid to ask the bank for repairs. The worst they can say is no. I have not heard of a bank fixing the nickel-and-dime stuff, but I know of one instance where the bank replaced a hail-damaged roof. Perhaps with a major expense item, the bank realizes this is now a disclosure item. If they don't fix it for the current buyer, they will likely have to fix it for the next buyer. Or they will have to disclose it, and the next buyer will offer less on the property.
Randy West owns Professional Building Consultants in Prescott. He is a state-certified home inspector and has performed almost 5,000 home inspections in the Prescott area. West is past president of the Arizona Chapter of the American Society of Home Inspectors (ASHI), and currently serves on the Home Inspector Rules and Standards Committee for the Arizona Board of Technical Registration. Contact him at randy@inspectprescott.com.
Reader Comments
Posted: Tuesday, August 25, 2009
Article comment by:
Mona
I just came in to the Daily courier site today. I have not been able to let it go. I have kept it on my computr all day. I keep returning to it. I have been wanting to move to the area for over a year. This is making it seem a possible reality instead of just a dream. It's giving me direction and hope. I am a Veteran (VietNam Era) and have not used my GI Bill for home buying.
