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…..

 

 

                       

 

 

 

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.

 

WestCoast Home Inspection                                                                                    Phone:           253-380-2922

903 291^st Street                                                                                                        Scheduling:         253-380-5949

Roy, WA 98580                                                                                                                     Fax:        253-843-1807