I was asked this last week by two different
clients why so many of the REO properties that they have been looking at appear
at first glance to be in good condition by turn out to be crap. Great question I think and I tend to agree
with what they are saying. I also have a
theory and here it is.
During
the early part of this decade when it seemed that everyone was buying and
flipping around properties at an amazingly fast rate, no one really seemed to
care what they were doing or what their skill level was. No one watched what was going on or
cared. They put lip stick on any old
house they could find and put it up for sale.
The people buying these houses paid way too much for them and didn’t
find the issues till around the time they could no longer afford them and no
longer cared about them. Now they have
been abandoned, stripped for parts and put on the market by the banks that
started the practice in the first place.
These
houses are now back on the market and still have the same issues that no one
wants to pay to fix. If you are going to
shop for these REO properties make sure you hire a reputable inspection firm to
come out and go through it for you before you buy. Permits were rarely pulled for these homes
and we find all kinds of interesting issues and hazardous conditions.
It
might be a good deal or it might be someone else’s problem. While I always agree that everything in a
house is fixable, it always comes with a price and as was always true it should
be a price you are prepared to pay not a surprise. Check out the pictures below. The owner of this “remodeled home” now is
selling and had no idea what was over her head for the last seven years. It came as quite a shock to her (no pun
intended). She was sure permits had been
pulled for her home because that is what the seller told her. Not the case here. Check it out.
Sincerely,
Matt Sorensen…..
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The owner of this house claimed that all proper permits
had been pulled and all work completed by a licensed contractor. I’m guessing she never looked up in the
attic. Properly re-wired is not how
I would describe this one. Watch out
when house shopping. This could be
you.
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WestCoast
Home Inspection Phone: 253-380-2922
