Bank Owned and Flip Houses
What a great time to buy a house! Deals are everywhere, and people are getting great prices on the home of their dreams. Whether you are buying that home from a bank directly, at auction, or a short sale, most of these houses will be sold as-is. That means that you get what you get and the seller, the bank, will not do any repairs. So why should you get an inspection? The bank won’t fix anything anyway, right?
Well, it is true that you may not be able to use the inspection report as leverage to lower the price or get certain items repaired. But you should know what you are getting into. Will the house cost you a fortune right after you move in? Will it be safe for your family to occupy the house? Can you afford the repairs after paying a downpayment, closing costs, appraisals, etc. ? A new furnace can be $5,000 or more. A new water heater can be $1,000. A new roof is $5,000-$20,000. And what about the cast iron drain pipes in that charming bungalow? Replacing those can be $7,000. Yikes!
A thorough inspection can answer these questions. The inspector can confirm that the furnace works, The roof is serviceable, the water heater has some life left, etc. While drain line inspections are not part of a standard home inspection, The Real Estate Inspection Company offers drain line video inspections as an optional service. If it turns out that these items require replacement, it may be better to pass on the house instead of running the risk of loosing it to the bank due to insurmountable repair bills.