Bank-owned properties are often attractive to buyers because of their low sale prices when compared to homes sold by traditional sellers. Along with the lower price come challenges unique to the purchase of a bank-owned home. Inspecting the home is critical, as many banks attempt to sell homes "as-is" and refuse to respond to repair requests from buyers. Ideally, a licensed home inspector will conduct a thorough examination of the home before the purchase is complete, but a potential home buyer should look over the home for major repairs before an offer is written.
Instructions
1. Examine the condition of the roof, gutters, foundation and siding. Look for evidence of water damage or pest infestation such as peeling siding or hollow or soft spots in the wood, leaky gutters and gaps where they don't belong. It is generally not advisable for potential home buyers to climb onto a roof of unknown condition, but a visual assessment might indicate whether it has missing shingles or is overgrown with moss. "This Old House" recommends examining the foundation for cracks and bulges.
2. Examine the interior of the home for signs of plumbing problems. Extensive water damage on walls where pipes run, signs of corrosion, leaky toilets and cracked tiles all might be signs of necessary plumbing repairs. Most banks will have the listing agent perform winterization on the home, meaning the water is turned off and sinks and toilets are not functional. This limits initially inspecting the plumbing fixtures, but once an offer is accepted, the bank might allow the water back on for the inspection contingency period.
3. Check the heating system by turning up the thermostat and checking the response, advises an article on the "Mortgage Daily News." If the home has central air conditioning, it might be more difficult to check in colder months using this method.
4. Turn on the appliances to see whether they are functional. Many bank-owned properties lack any appliances or light fixtures, so this might add additional costs to the potential buyer's budget.
5. Locate the main electrical panel to initially assess the condition of the electrical system. "This Old House" suggests looking for scorch marks around breakers or fuses in the box and around individual outlets. A licensed inspector will check for the presence of aluminum wiring and the number of switches and outlets, among other electrical hazards.
6. Look over the baseboards at ground level, especially in the basement if the home has one, for any evidence of water damage from flooding. Sagging, discoloration on the walls and peeling paint might indicate previous water problems in the home.
Tags: water damage, evidence water, evidence water damage, inspector will, might indicate, potential home
