Prepping for a Foreclosed / Vacation Home Inspection

A foreclosure home may offer a great investment opportunity for a home buyer/investor with the resources and knowledge to professionally renovate the property; however, it will present some unique challenges when the time comes to inspect the property. Typically, these homes have been vacant for long periods of time and are sold in “as is” condition. In many cases, the homes have been found to have deferred maintenance issues from the previous owner. The lack of physical resources to perform general maintenance on a home for an extended period of time can result in a significant amount of qualified deficiencies. Even the best of home inspectors can miss damage that is NOT apparent, but may be lurking behind walls and under floor coverings. Leaking water, vermin activity, and rot can occur in areas not visible to even the most thorough inspector without tearing out walls, etc. Additionally, we have seen acts of intentional sabotage; whereby, the previous owner carries a desire for revenge and a poor attitude of: “if I can’t have it, no one will”. All this being said, preparing for and performing the home inspection on these properties introduces some new challenges for the Realtor, buyer and the home inspector.

The main issues in preparing the home for the inspection are:

• Verification That The Utilities Are "ON" Inside The Home Since these homes have been vacant for an extended period of time, a bank will shut off all the utilities at the street and the home may be winterized. This means that the water has been turned off inside the home and the water pipes have been drained, toilets have been flushed, and antifreeze may have been poured into the sinks, tub/shower, toilet bowls and tanks. If the property has a hot water heater, this has also been completely drained. In order to perform a full inspection, all utilities must be operational inside the home. The utility companies should be notified and any unsettled disputes of monies owed may be the responsibility of the new owner. Once this is completed, the main shut-offs inside the home should be turned on by insured, qualified professionals (plumber/electrician, handyman etc.) It is strongly recommended that the buyer or Realtor do not accept this responsibility, as there is an exposure to liability in the event of a system failure. Finally, know that few inspectors are willing to take on the risk of being the one who “turned on” the trouble.
• Access to Locked Areas Be certain that prior to the inspection you can gain access to all locked storage areas, garages and out-buildings. Access to these areas is necessary to perform a complete inspection. At best, the inspector will report these areas as “inaccessible” or “not visible”, leaving the client hanging out to dry with regards to what surprises might be hidden.

Your client will be best served by careful planning and preparation in securing the ability to inspect the home properly… if that means a delay of a couple days, so be it … after all, fewer surprises, will generate future referrals. GOOD SELLING !!