WHAT IS THE PURPOSE OF A FORECLOSURE INSPECTION?
Foreclosure Assessments are for both the private individual looking for an affordable home and for Banks / Mortgage holders. It has been our experience that many foreclosures have been damaged, sometimes this damage is hidden to the extent that the Lender nor the Real Estate Company (listing agency or buyers agency) do not realize that such damage can be very costly.
For the private individual to put a contract on a home, have an inspection done only to find out that 1.) there are damages and 2.) those damages exceed the value of the home can be costly. While we are in business to make money for providing inspections......... to see a client spend over $1000.00 in inspection fees over the course of trying to find a home they can afford is disheartening. It also sheds a bad light upon the Real Estate Agent who are often do not have the experience in recognizing a unprofitable foreclosure from one that is a good deal, it is for this reason that many agents to not like to show these type of homes.......and many home inspectors do not like to inspect such because of the time frame it takes to inspect a foreclosure plus the construction knowledge it takes to properly evaluate a foreclosure.
For the Lender who holds the deed to these type of homes they need to be able to properly evaluate these properties to determine a course of action prior to listing the home or simply putting it up for auction. We have seen foreclosure homes that would have gone for more money if the lender would have simply made a few minor repairs prior to listing the home or during a transaction.
HOW THIS INSPECTION DIFFERS FROM A REGULAR INSPECTION
These inspections differ in that other than for the Lender who often has their own report format that we can utilize, we simply are using our contractor's knowledge in helping our client determine if the home is a good deal. There is no need to spend $130,000 on a foreclosure with a tax value of $150,000 when their are over $30,000 in repairs. The overwhelming majority of home inspectors can not give you an estimate for such homes because as we have indicated on our website that most home inspectors have very little working knowledge in the construction field.......in essence you are simply wasting your money on hiring them.