Another example of “collateral damage” in the current Real Estate mess----that most of the country finds itself----is that more and more home inspectors are becoming un-intentional “deal killers”----including this Seattle Home Inspector. Nowadays it seems, with so many distressed properties for sale, there are a great many more issues that come up that justify more caution on the part of buyers----especially first time buyers without the cash reserves to fix the additional issues found at these properties. The result is that more buyers walk away after the inspection----and it is more likely that there are not going to be ten people waiting in the wings----and that the house is not going to be sold in a timely fashion. The odds are stacked against a house having been properly maintained----if the owner was not able to pay the mortgage in the first place. Add to this that some of these homes get vandalized by unhappy owners being forced to leave, or that homes are trashed by being winterized and we end up with the “perfect storm” for the home inspector to “write a book” about. Many of these places look like they have been hit by a tornado ----followed by a hurricane to “smooth things over.” Please remember (for the most part) inspectors are not “deal killers.” Each house has a “story”----we merely write that story down. For many of these properties, it would be splitting hairs to say that it might be possible for the home inspector to write the report in such-and-such a manner so as to negate the tornado and the hurricane. It is up to the agent to sort out how these storms have compromised the deal. It likely had nothing to do with the agents or the home inspectors. Charles Buell
Before the bubble burst, it was much less common for a home inspector to kill a deal in such a way that the house might not sell in a timely fashion. This was because if one buyer walked away there might be 10 others waiting in the wings. Previously, while a home inspector might nix the deal for a particular agent involved, the sale at least would likely happen even if it was for some other agent----and in a timely fashion.
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"The odds are stacked against a house having been properly maintained----if the owner was not able to pay the mortgage in the first place."
Absolutely because if they cannot pay the mortgage...they cannot afford keep the home up at ALL!
I will be writing later today about a shipwreck foreclosed property that some rehabber got ahold of...
Helping you help others live their American dream...
Charles.....I think there's so much more liability involved in a foreclosure sale.....we stay away from them.....new construction and resale properties that are not bank owned are what we focus on.
Hi Charles, it is important for inspectors to do their job without reservation or consideration. As agents, we should insist on full disclosure. Anything less is asking for trouble for everyone. Yes, it is a tough market, and buyers often get remorse and sometimes an inspection is a convenient excuse to walk away, even if a repair can be negotiated, because maybe they found something else they like. In the end, we need inspectors to do their job well. Thank you for your conscientious work.
It's an unfortunate reality that many of these homes have significant issues because nobody wants to take the responsibility of maintaining them. And you are right. The inspector does not kill the deal the house does.
Charles - The issue you describe is a serious concern which will only grow as foreclosures continue. I've recently wondered just how much home value may have been lost due to damage and theft following foreclosure. I suspect the number would be staggering. That's the reason buyers must hire a professional inspector to look at any home, especially foreclosres.
This is such an eye opener Charles!
Thank you for your post!
Paul
True! I caution buyers who want a "deal" to stay clear of REO's (bank owned) because a lot of them have a lot wrong with them.
Charles - many of these homes should be walked away from....unless the banks are willing to do the repairs needed and I might add with a licensed contractor. Personally I am glad inspectors like you point out every little item whether it's BIG or small. The latest one that came across my desk this week was a freaking nitemare - and somehow the agent didn't think it was a big deal as it was. Can you say HELLO? It was so bad the inspector took me aside at another meeting and told me all about the problems. Why a buyer would pursue this kind of mess is beyond me............my take is they need to walk away or sign off on it from my broker point of view.
Charlie,
That is true. Many of those places just are not ordinary houses needing a bit of maintenance. Some are disasters.
Charlie,
PS..if you are contacted by your buddy Nutsy, let him know that unless he contacts me soon he will miss the plane connections.
Charles, so many of those type homes around here. They get stripped bare by angry onwers. They are a disaster on the outside I find it hard to understand why anyone would want to go inside no matter what the price.
Many of these lenders do nothing at all to maintain even the minimum upkeep or protect them either. Who's the real bad guys?
Ana
Isn't it the truth? And yet often times, someone wants to shoot the messenger...
Debi
Russell---too often the case it would appear
Michael---ouch:)
Barbara, it does seem risky
Frank, thanks for the kind words.
Vince, it is interesting that banks get interested when homeowners don't take care of their properties but seem to care less when they own them
Paul, thanks
Carla, Deal and Foreclosure is an oxymoron it would seem:)
Anna, anyone that isn't capable of doing the work on these places in a qualified manner probably should stay away from them in my opinion---unless they are rich. And if they are rich why are they interested----unless it is the lot they are buying:)
Steven, for sure
Steve---mum is the word
Ana, hard to find a "victim" bank:)
Debi, I know it comes with the territory---but.......:)
Charles, it is a terrible situation. Around here, you know that a house that has sat through the humid summer without A/C will be LOADED with mold... without any of the awful things angry or desperate ex-homeowners have done to the property.
The same thing here! Every now and then I get a call from an agent asking that something be worded a bit differently. Sometimes what I write may be a bit clunky, but it is hard to put moldy, wet basement walls or damp, sparking circuit breakers in a good light...
Charles,
My ace home inspector find a pipe that suggested an in-ground oil tank in an otherwise fabulous foreclosure. Local building department had NO records, old listings indicated propane heat. Scan found a tank...
We're trying to work with the bank on the issue. In any case, that sharp inspector saved my buyer's hide by spotting this!
Shoshana, no matter what climate---house that are left unheated and un-ventilated can develop problems
Jay, sometimes I have agents ask me to word things more harshly too:)
Irene, oil tanks are for sure a good thing to identify
Charles, I couldn't agree with you more. In my neck of the woods I estimate about two out of three houses I inspect right now are foreclosures or short sales. As you mentioned, some prior owners beat up these houses pretty good before leaving. I have seen everything from cabinets, doors, and light fixtures stripped out of the house to rotting fish in the attic. Just the other day I inspected a house where the gas generator had been "removed" without turning the gas off or capping the gas line. Needless to say, you could smell the gas from fifteen or so feet away. Spooky!
On a similar note, I recently read an article in the Seattle Times that stated "about one in five pending sales contingent on inspection falls through now... Not long ago... the ratio was more like 1 in 20." The article can be found here: http://seattletimes.nwsource.com/html/businesstechnology/2010896889_homes27.html.
Ultimately, I think it is worth noting that home inspections are only one of many things that could kill a deal. If anything, the inspection report could be the final nail in the coffin for some folks only after having lending issues, buyers remorse, finding another house they like better, and so on.
As agents we need to prep our clients before the inspection. I tell them right up front if the inspector does not find problems the inspector is not doing a good job. I tell them to stay focused on safety issues and hidden issues with a big price tag.
Jason, seems like we just have to grin and bear it sometimes:)
Gene, a lot of these forclosure buyers could use considerable education when getting involved with these purchases.
Charles,
I like the way you explain an inspectors role to write the story of a home. Folks have asked me many times if I would ever spend $400-$500 on a home inspection? I say any day of the week, I would run and be thankful I only lost that much.
A lot of emotion goes into buying a home for buyers. A home inspection is a good opportunity to take a non-emotional look at the house and what state it is in. It's a guidebook if you will.
All the best, Michelle
PS I think this PERFECT storm will be around for quite awhile:-)
Michelle, thanks----the story we write down about some houses is War and Peace---others are more like the Little Prince:)
I see my share of these stormed properties. You are right on all counts and it all boils down to lack of maintenance.
yes they look so nice but Foreclosures are such tough on to stomach.