Thread: Tim M Barr

How does everyone handle a house that has no utilities on? I have been getting forclosed homes that the banks do not want to turn on the ulitities. They( the banks) tell the buyer ,you are buying it as is

Tell your client to run! It may be being sold as is but your client has the right to know what that "as is" is. If the client is hell bent on moving forward warn them of the consequences and disclaim in your report all you could not inspect and why.

Just heard back from one of my clients Bank turned power on. They must want to sell it

People amaze me.

They will go out and look at a car their buying more so than a home their buying. If the car starts and the radio, A/C works it must be in good shape.

Oh, there's a little dent on the hood so I'll need to put it in the shop and spend 500+ to get that fixed.

But on a house, most persons largest investment they'll skimp on a home inspection or put out a few bucks to get the utilities on.

I have a investor client that went ahead and bought one that had no electricity, gas or water on at the inspection. We will not inspect a home that has no utilities on, plain and simple.

Don't want the headaches after they have moved in and found all the problems.

This guy bought this place and so far has replaced (2) complete HVAC systems, a water heater, dishwasher, a garage door opener, several leaks, the pool equipment and numerous sprinkler heads. He called me about it and said he wished he'd listened.

I said, Yeah but remember you got such a great deal on the place.

Two things I always ask:
1) Is the home occupied or vacant?
If occupied, you can make the assumption that all utilities will be on.
If not they say, "vacant" that will always prompt another question, "Will all the utilities be on for the inspection, because we will require everything to be on, otherwise... those that aren't will be noted as "not inspected" and become a part of the finished report".

2) Has the listing agent been notified yet of the inspection date/ time?
If not, you might want to check and see if they will have all of the utilities on by this time frame, otherwise... it will behoove you/us to conduct the inspection when everything can be inspected.

These questions (asked everytime a scheduling takes place) eliminates one heck of alot of problems.

With that said, I just showed up to a 4300 sq ft condo-repo in Frisco that had no water and no electricity.... so it's not a fail-proof thingy.

Rich

I just did one that supposedly had all the utilities on.
When I got there, the house had been winterized, two attic water heaters drained, no propane in the tank.
When the realtor show up (out-of town client) She begins giving me grief when I explain I don't dewinterize...
"But all the other inspectors just turn on the water and if there is any damage, the bank is still liable"
I told her I will be happy to come back once the property is ready to be inspected, but "I" don't assume the liability for damage to the house.

This is a 3700' house that is two years old, still new that the builder must have lost to the bank, but they can't afford enough propane to keep it from freezing
In my book, winterizing in this area is a dumb idea that creates as many problems as it solves.

Originally Posted by Timothy M. Barr

How does everyone handle a house that has no utilities on? I have been getting forclosed homes that the banks do not want to turn on the ulitities. They( the banks) tell the buyer ,you are buying it as is

Have your client tell the bank:

Okie dokie, the house is $350,000 ... less $35,000 for re-plumbing ... less $35,000 for re-wiring ... less $15,000 for HVAC system ... less for ... the bank will get the picture by then.

Did a house yesterday. Bank still owns it Client walked when he was told the septic system needs replaced. $35000 to replace