May 1, 2009 11:16 pm US/Central
Inspectors Spot Costly Problems In Foreclosures
COTTAGE GROVE, Minn. (WCCO) ―
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Water damage, mold and wiring problems are just a few of the common discoveries when inspectors dig into foreclosed homes that are listed in as-is condition.
CBS
There are a lot of foreclosures out there, and some are very good deals. But some have hidden flaws that can end up costing the unsuspecting buyer a load in repairs.
Water damage, mold and wiring problems are just a few of the common discoveries when inspectors dig into foreclosed homes that are listed in as-is condition.
A house in Cottage Grove looked great at first. The buyer was ready to sign, but the realtor recommended an inspection just to be sure.
"Inspections are not for the obvious stuff, they're for the things you can't see," said Coldwell Banker Realtor Mick Ramey.
So the utilities were turned on a couple days before the inspection. That inspection saved the prospective buyer from some big hidden expenses because when the water was turned on, a pipe burst. Not only did it burst, but the house was left unattended, so the main level and basement were flooded by the time everyone returned for inspection day.
"This house had a foot and 1/2 of water on it. You'll see it was right up to here, you can even see the electrical outlet, there's rusting in the electrical outlet from the moisture," said Housemaster Inspector Dave Sroga. "If the utilities aren't on in these homes, and I've done some with no power, no water, you don't know what you're getting. There's no way to know if the fixtures even work."
Now the paneling and sheetrock have been stripped, the water damage mitigated and repairs will be made. But that would have been a nasty surprise had the buyers skipped the inspection.
"We're schooled on what to look for. If you're having an electrician come over to look at it, yes they can spot all the electrical problems, but what's their background in heating and air conditioning, framing, roofing," said Sroga.
While he lost this commission, the realtor is glad his client learned the truth about this house before making the big investment.
"We actually gain his confidence by showing him 'hey, maybe this house needed too much work. You're better off buying something else,'" said Ramey.
When choosing a home inspector, look for a company that is fully insured carrying liability and errors and omissions insurance. Some inspectors might be cheaper, but, if there's a problem, you might only be able to hold them liable for the cost of the inspection.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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