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How to Identify the Property Condition Correctly (9)

identify9 300x160 How to Identify the Property Condition Correctly (9)

It almost seemed as though the people who were foreclosed on said to themselves, “If I can’t have this house, then neither can anyone else!” Your repair costs may equal or exceed the purchase price. This is not a recommended situation for someone who is new at purchasing foreclosures. Preparing a bid sheet is difficult when you cannot determine your repair expenses, and a mistaken “guesstimate” can cost thousands of dollars.

Most lenders will not approve a mortgage loan if the bank appraiser is unable to get access to the inside of the premises to check that the plumbing, heating, and electric systems are in good working order, or if there are major structural repairs that need to be completed. Buying a property that you cannot inspect first is like buying a car without looking under the hood.

Unless you are very handy and can afford to make repairs at minimum costs, or plan to knock the structure down completely and rebuild from scratch, avoid foreclosures that are vacant and inaccessible. Move on and look for a different property where you can get inside to inspect.

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