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Buying & Selling Foreclosure Properties

Work the foreclosure, but don't forgo the inspection. With the increased rate of foreclosures nationally, a property inspection is extremely important to educate and protect buyers and REALTORS® alike.


House Under Foreclosure

Foreclosures are mostly sold "as-is" by the lender and do not always carry the disclosure obligation as the typical real estate transaction. Although it is sold "as is", it is important that you know the extent of defects and repair costs.

A thorough inspection of the property will not only identify material defects but will also educate you about the restoration of the property, helping you anticipate potentially thousands of dollars in unexpected repairs or replacement of components. 

From our experience of over two million inspections, here are just some of the issues most commonly found with foreclosures:

  • Conducive termite conditions 
  • Damage or removal of plumbing components
  • Damage or removal of pool mechanical equipment
  • Damage to AC condensing unit and/or removal of components
  • Damage to appliances
  • Damage to pool surface and screen enclosure
  • Faulty electrical systems and components
  • HVAC system problems
  • Water Penetration and Damage issues
  • Interior structural damage
  • Roof damage not immediately evident
  • Other hidden damage

The above conditions are particularly common in foreclosures because many of these properties endure an extended period of deferred maintenance, or in some cases, withstand damage from the homeowner (a foreclosure, after all, is not a happy time). For this reason, it is important to have an inspection to learn as much as you can about the property you are about to purchase.