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There is 1 property that has been vacant for over a year. It was built a year ago, inside looks fine, and it has neve been occupied. What are the pitfalls of purchasing such properties? I am especially concerned about
(a) the builder's warranty
(b) other things (water leaks etc) that we may not know about
(c) if the a/c heat still works on a real hot/cold day
We can hire inspectors but will they cover all the bases?
Thoughts?
Last edited by calmdude; 02-12-2008 at 02:06 PM..
Reason: spelling
If it's a new build, the builder's warranty probrably still applies, but it's deffinately something you need to ask about before making an offer.
Deffinately hire an inspector. They should be able to check that heat and A/C are working, outlets and switches are working, hot/cold water and diswasher is working. There's always a chance they could miss something, but I wouldn't buy a house without an inspection...
Yep, GET THE INSPECTION! If there is a water leak since no one has lived in the home it should be noticeable. Look for ANY discoloration in the plaster on the walls and ceilings. Check the attic for any signs of moisture, etc. Since no one "was home" to catch a leak it would have gone undetected and left signs of such. Even if there is a leak and the builder simply paints over it it will still "bleed thru" so look for that. They should have cut the wet drywall out and replaced it.
An inspector will run the ac and heat along w/ all plumbing and built in appliances for a certain length of time to determine if they are working properly.
As for the builders warranty........... did the builder get foreclosed on since the home was never lived in? If that is the case then you probably will not have a builders warranty.
I'd walk around the perimeter of the home looking at the foundation and the brick. Check to make sure there are no signs of foundation problems since no one has lived in the home to "water" the foundation. Look for cracks in the brick and mortar, pulling away around the eaves and facia, etc. On the inside check all of the doors and windows to make sure they open and close easily (might be stuck at first simply by sitting for so long when it comes to the windows but after 1 try it should be easier if there are no problems). Look for cracks on the inside as well.
I also think if the house/property has ANY liens against it you will also assume those when you purchase the property. I would recommend using a agent that does this on a regular basis so you will not have any financial surprises.
I also think if the house/property has ANY liens against it you will also assume those when you purchase the property. I would recommend using a agent that does this on a regular basis so you will not have any financial surprises.
Good suggestion.
It is the bank that has the lien and is the one selling. Dont know of others. I need an attorney to put in language that says the seller has the right to sell and that no other monies are owed.
Yep, GET THE INSPECTION! If there is a water leak since no one has lived in the home it should be noticeable. Look for ANY ......
As for the builders warranty........... did the builder get foreclosed on since the home was never lived in? If that is the case then you probably will not have a builders warranty.
...it should be easier if there are no problems). Look for cracks on the inside as well.
I will get 2 inspectors from different compaies- it is worthwhile.
The builder did not get foreclosed on - it was the first buyer from the builder. The home is now owned by a bank. I think the home warranty still usually applies - correct? The agent thinks it does and is checking.
I will get 2 inspectors from different compaies- it is worthwhile.
The builder did not get foreclosed on - it was the first buyer from the builder. The home is now owned by a bank. I think the home warranty still usually applies - correct? The agent thinks it does and is checking.
It should. Check w/ the builder to make sure that the original owner did not have any warranty issues and settled which would make any warranty void. You should be able to contact the builders warranty dept and give them the address.
I'm curious...who was the builder? The title company will do a title search. If it is a regular foreclosure by the lender, the lenders/bank(servicing company) will pay all taxes, HOA fees & liens. If the home was foreclosured by a Home Owners Assoc. or for city & county taxes..the homeowners have an opportunity to buy back. Again, have a realtor represent your interests..the sellers pay their fees.
***Ask the listing agent which title company is handling the foreclosed homes title search.
***First- Hire an inspector. Contact the listing agent & make sure utilities are turned on for a thorough inspection. A good general inspector will detect any water movement if there is a line leak, they will check all HVAC systems, plumbing, elect & roof. Then, they will tell you if you need addition plumbers & further evaluations. Banks will pay for Home Warranties & some repairs to sell.
**A Structural Engineers inspection is highly recommended for foundation.
***All builders are now required to purchase a Texas 2/10 Builder warranty, however, if the home was foreclosed before completion-the builder may not have purchased prior to Certificate of Occupancy.
**Google Texas Builder Warranty or the HBA to get the phone number. When you call then-all they need is the original owner & address.
*Again, utilize a professional Realtor-ABR.
In terms of ac / heat, how does one check for ac on a winter day (or heat in a summer day)? Also, some leaks / malfunctions may be small and the hour or two an inspector spends in the house may not uncover the leak / problem. Thoughts (I am uneducated in this area)?
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Foreclosures
