Home buyers might think they know what they’re getting into with a short sale. But property that’s headed into foreclosure may have numerous problems. It’s a bargain. Maybe it’s even a steal. But foreclosures often have several strikes against them. As a certified home inspector, you can help temper customer enthusiasm with facts so they can make a better-informed buying decision.
Here’s why you should market your talent to every buyer who’s thinking about picking up real estate on the cheap.
Homeowners Threatened With Foreclosure Might Intentionally Damage the Property
It sounds like a rotten thing to do, and it is. But when faced with losing their home, some homeowners take it out on the property in the hopes of making the lender suffer. Unfortunately, a short sale buyer might reap more of what they sowed than the lender will ever know existed.
Lawyers.com explains that intentional damage is a common problem. Homeowners may destroy the house, damage fixtures or remove fixtures entirely. That includes anything from cabinets to HVAC units, and especially anything of value that can be sold.
According to Zillow, some damage is difficult to spot. Without a certified home inspector, buyers may not know until it’s too late that the previous owner poured concrete down the drains or left meat to spoil in the attic.
When Finances are Tight, Regular Maintenance Often Suffers
Not every homeowner in dire financial straits has a grudge against the lender and new owner. Some, probably many, don’t have the means to tackle regular maintenance and routine repairs. As a result, a short sale house might have numerous lurking issues that need attention right away.
Buyers who are excited about buying a cheap house might not worry about the roof, especially if the interior doesn’t show signs of a major leak. But in a year or two, that might change. A roof inspection can point out home systems that are teetering on the edge of major repairs.
That’s true for any of the major systems in a home. If the HVAC system conks out, the buyer will be stuck with replacement or repairs. Appliances aren’t cheap if they’re past their prime, and neither is a structural rot repair caused by inferior or non-existent gutters.
Short sale buyers should think of a home inspection as protection against flying blind into a bad investment.
Vacant Homes Could Have Vandalism Issues
Short sales are an option before foreclosure happens in earnest. In many cases, a short sale home will be occupied by the owner when it hits the market. But that’s not universally true. If the owner has moved out, someone or something else might have moved in.
Vacant homes are vandalism targets. Teenagers may break in and throw parties, which happened recently in Las Vegas. Or a squatter might move in and stay.
Vacant houses may also have a pest problem. If a window is broken, that’s an access point for birds, squirrels, raccoons and many other critters. Where there are pests, there are health hazards plus extermination and removal costs to think about.
A short sale house is often a terrific bargain for buyers. They help everyone involved. The homeowner avoids foreclosure, which saves their credit. The lender isn’t saddled with a non-paying owner and property to put on the market. And the buyer gets a house that might be worth a lot more than the asking price.
It’s an all-around win as long as buyers know what they’re getting into. With the help of a certified home inspector, buyers can go into a short-sale purchase knowing exactly what they’re paying for.
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