Home Buying in Marysville>Question Details

Laura, Home Buyer in Marysville, WA

Should we get an inspection in short sale, sold as is?

Asked by Laura, Marysville, WA Fri Apr 10, 2009

we would have to turn on elect and water to do, also our realtor says we have to buy a stove just for the appraisal not sure if this is accurate? have many questions but realtor doesn't know much to help us.

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24
Most of the time the utilities will work with you and turn them on for 24-48 hours so you can inspect. If they won't do it for free, I typically (as the broker) take that on.
You won't need the stove for the inspection but you will for the appraisal. You need a cooking surface for the home to be considered inhabitable. I do quite a few short sales mostly on the seller side but a fair amount of the buyer side and I am fairly close to your location. If I can answer any more questions, please feel free to contact me.
Web Reference: http://skagitshortsales.com
0 votes Thank Flag Link Wed Jul 27, 2011
Always get an inspection!
0 votes Thank Flag Link Wed Jul 27, 2011
Short answer is yes. Not only in a short sale but with very few exceptions get an inspection
Web Reference: http://skagitshortsales.com
0 votes Thank Flag Link Wed Jul 27, 2011
I think it is very important for the inspection. I thinking the broader question is if it is a short sale where the owner has moved out and turned off the utilities, who should pay to have them turned on for the inspection ? Some utility companys in our area will work with you to turn on the utilities for a short time for inspections , others want huge deposits. I feel it should ALWAYS be the sellers side to make sure the utilities are on so an inspection can be done. After all, the are the ones trying to sell the home.
0 votes Thank Flag Link Wed Jul 27, 2011
We do short sale home inspections all the time. It's important to always get a home inspection for every home transaction! Would you buy a used car without your mechanic checking it out? We have a facebook coupon...that would save you some money, but your realtor should be able to negotiate the utility connection fees.
0 votes Thank Flag Link Mon Apr 18, 2011
Always with out exception get a home inspection. The cost so small compared to the cost you may have to pay to fix/repair what you do not know about. I have been selling homes for more than 30 years and only once did I allow a sale to be done without an inspection and that client was a licensed contracor who gutted the house and replaced all electrical and plumbing. If you have that kind of knowledge and the license you would be OK without and inspection however your buyers agent would require you to write a letter reference this decision and provide the proper attachments to verify this specific knowledge.
0 votes Thank Flag Link Fri Apr 15, 2011
Undoubtedly Yes. With that said there are some item to take into consideration when purchasing a short sale and a home inspection. Short sales are a different beast to deal with because of the ambiguity of the transaction going through and the listing agent required items prior to submitting a package to the lien holder. When relating to your situation, have the listing agent take care of the utilities (that's what I do) and depending on current financing the missing stove could be a problem. A 203k rehab loan could be a solution to work in the costs of the stove if it doesn't pass the appraisal.
0 votes Thank Flag Link Thu Apr 14, 2011
If the house is vacant, the lender should be notified of this and may agree to have the electricity and water turned on once again. Talk with your agent about this. It is necessary to find out if there are any leaks etc. in the system. Good luck!
0 votes Thank Flag Link Mon Aug 31, 2009
Eash State has such different laws regarding what you have to do to buy a home but I would never let a client of mine buy a home without an inspection. Usually turning on the utilities for a one day time can be worked out with the utility companies and what that cost is, in so small compared to what you might find during an inspection that could cost you thousands of dollars. People do some very strange things to houses when they are losing them I've seen concrete poured down toilets, serious leaks in plumbing and roofs. An inspection is so very important to give you peace of mind you are buying a good solid house that will give you years of pleasure with your family and friends and not have repair bills that would eat you out of house and home. "CJ" Barnes" Las Vegas Nevada
0 votes Thank Flag Link Mon Aug 31, 2009
i ALWAYS RECOMMEND AN INSPECTION TO A BUYER. SOMETIMES THE LENDER DEMANDS ONE AND IF IT IS A CASH DEAL THEY STILL SHOULD HAVE ONE. IT IS FOR THEIR BENEFIT ALONE SO THAT THEY CAN BE PREPARED AS TO WHAT NEEDS TO BE DONE OTHER THEN A COSMETIC THING. THE ODD TIME THERE IS SOMETHING MAJOR THAT NEED REPAIRING AND THE BUYER MIGHT THINK IT IS TOO COSTLY AND DECIDES TO BACK OUT OF THE OFFER.
0 votes Thank Flag Link Sun Aug 30, 2009
An inspection is your only protection, you really need to know it there are problems with the home that would cost you to repair and if there is repairs what will they cost? With out this information you may be in for major repairs that you may not be able to afford. For instance a new roof? plumbing issues these can cost a bundle.
I will never advise a buyer purchase a home without an inspection if they are financing usually they don't have the cash to pay for repairs.

If someone is a licensed building contractor or other professional in that field and can repair items themselves there is a waiver form I ask them to sign if they do not get an home inspection. This would only be for cash buyers that have the means to do repairs themselves. "CJ"
0 votes Thank Flag Link Wed Aug 12, 2009
Laura;

Absolutely on an inspection! This is some of the best money that you will ever spend and you want to make sure that the inspector is qualified, takes photos , emails and has a great response time for your inspection contingency timelines. As for the utilities, there likely is not money for the Seller to have the utilities turned on, you can call the utility companies and let them know what your intent is, on getting an inspection and they usually will turn them on for a small fee, to conduct your inspection. When the water in turned off sometimes that will ruin the hot water tank, if not done properly , you will want to check the furnace and possibly invest in a good Home Warranty that will cover pre-existing conditions . For example: AHS has a good home warranty, for that . ( I usually purchase one for my Buyers as a gift. ) You are not only buying a home, you are making an investment and you should always know what you are getting into. There very well would be a need for a stove in the home, depending on your financing. Most of the time the lender will want one there and the appraiser may call for it. ( Depending on the type of financing ) There are also FHA programs that will allow for repairs like the 203k , that might be an option as well. I hope that this helps to answer your questions. Best to you ! Natalee Thurston
0 votes Thank Flag Link Tue Aug 11, 2009
Hi, Debbie,

This is a short sale, so there is certainly money available to turn on the utilities for a home inspection; and I stand by my answer.

Jean
0 votes Thank Flag Link Sat Apr 11, 2009
Jean, - Yes, it would be nice if the seller was to turn on the utilities for the inspection. But it isn't a requirement. Many times the sellers don't have the funds to do even that. They are walking away from their home after all and it is the buyers inspection. As I mentioned previously, it's not a huge expense for the buyers to have it turned on for a day. Ask the sellers if they can do it and if they can't the buyer can. I think it's important to give realistic answers on the forum and not negotiation answers, like - "the listing agent should absolutely turn on the utilities." That isn't always realistic in todays market.
0 votes Thank Flag Link Fri Apr 10, 2009
Hi, Laura,

As a clarification, the listing agent owes fairness to the buyer, no matter whether the seller OR the bank is calling the shots. On a short sale, the bank is the one approving the costs involved. On something so basic, the listing agent should absolutely make sure the utilities needed for a home inspection are turned on.

Thanks,
Jean Bradford
Associate Broker, ABR, GRI,CRS,CRB
0 votes Thank Flag Link Fri Apr 10, 2009
Laura,

Just to be clear.... Jean, the agent that responded mentioned that the listing agent on your short sale may be protecting the seller (BANK). Many agents are unclear on this. In a SHORT SALE, the seller is the homeowner. The bank has not foreclosed on the house yet. Therefore the seller is the homeowner. NOT the bank. Now, an REO porperty, is Real Estate Owned by the BANK. and they would be the seller.

Many agents are confused on this. The house you are purchasing is a short sale, per your description. The bank is approving the short sale because the homeowner owes them more than what they are selling it for. If the homeowner doesn't want to sell he doesn't have to and then the bank may foreclose on the property and the property becomes an REO property.

Debbie
0 votes Thank Flag Link Fri Apr 10, 2009
Hi, Laura,

Yes, you most certainly should get a home inspection, to be sure you know what you're buying. The listing agent should be responsible for turning on the electricity and water. Sometimes listing agents go overboard in protecting their "seller" (the bank) from their responsibilities. You need to be firm with your Realtor, and seek advise from his broker if you're not satisfied.

Also, there is no reason the appraiser would ask for a stove to be there at the time of his inspection. That is personal property. Even if, for some mysterious reason he requires it to be in by closing, you can always have it delivered at the time you sign closing papers.

Good Luck,
Jean Bradford
Associate Broker, ABR, GRI, CRS, CRB
0 votes Thank Flag Link Fri Apr 10, 2009
Laura: I will add my 2 cents worth into the answer to this question. I would always encourage a buyer to have an inspection no matter what the condition of the home is, especially resale homes. You still have the right to back out on the Purchase & Sale if you find things that may become too costly to repair.
As far as the stove in the home I agree with what all the others have said if we are talking about FHA and VA loans. But, again, that doesn't need to be done until after you receive bank approval and the sale is moving forward to closing. Good luck on your purchase
Morrie
0 votes Thank Flag Link Fri Apr 10, 2009
Laura,

I'm also an Agent in Marysville. I work just about all short sales. Yes, do the inspection. Just because it is a short sale does not mean it is a dump or that there are problems with the house. I short sale homes that are in top condition too. It is always a good idea to do a inspection. turning on the water and power is very inexpensive for the day. The inspector can give you really good information on how to take care of your new home as well as a multitude of other good iinformation. Buying a home is a big investment and the more you know before you buy the better. Ever buy a dress, didn't try it on first and found out it didin't fit? ! :) Knowledge is power.

As far as the stove. It sounds like you are going either VA or FHA on your purchase. The home does need to have a cooking surface in it. However, you don't need to run out and buy one today. After all the short sale hasn't been approved yet right? Is there a non working stove in it right now? There are ways around this obstacle.
Congrats on the house and good luck!

Debbie
0 votes Thank Flag Link Fri Apr 10, 2009
You most likely will need a cooking surface for the appraiser. I don't know of a circumstance that I would not recomend getting an inspection. I certainly would on a short sale even if the home is sold "as is, where is". You may find something that is so costly or to much work for you to take on. You should have an inspection contingency so you will have to pay for the inspection but shouldn't lose your earnest money if you decide to walk away.
Good luck!
Web Reference: http://www.edfinlan.com
0 votes Thank Flag Link Fri Apr 10, 2009
Are you going through a VA loan? I think VA requires you to have a stove. And yes, GET AN INSPECTION! Even if this is a great deal price wise... you may find huge problems that are not worth it to purchase!
0 votes Thank Flag Link Fri Apr 10, 2009
ABSOLUTELY have an inspection. It doesn't matter if you have an inspection contingency or not, there's a small chance you could find a problem so large that it's worth walking away from the transaction - even if it costs you money.

Most likely, you'll be satsified with the inspection and buy the home. The inspection will give you peace of mind, though. It's like an insurance policy, it's not fun to pay for it, but it protects you from larger losses.
Web Reference: http://SeattleHome.com
0 votes Thank Flag Link Fri Apr 10, 2009
It would be wise on your part to get a home inspection or at least a termite inspection - a termite inspection will give you alot of information about the house without putting out alot of money on an inspection. Most termite companies charge $120 - $150 for inspection. I don't think you need to have a stove for an appraisal. Perhaps you misunderstood your realtor.
0 votes Thank Flag Link Fri Apr 10, 2009
Hello Laura,

Check your contract and with your agent to make sure you have the option to cancel the deal if an inspection turns up something you do not care for. If you have that option I would most certainly recommend an inspection. Having utilities available is necessary to perform a complete inspection. Without the utilities there are just way too many unknowns and potential problems that can easily be missed. Have you checked on the cost of having utilities turned on and whether it can be performed during your option period in enough time to get it inspected?

If your contract does not have an inspection contingency in it then you may be forced to continue with the purchase whether an inspection is performed or not. In this case it may still be well worth having an inspection performed in the event the inspection uncovers something that was intentionally left off of any disclosure provided to you.

Have you pulled an insurance CLUE and/or A+ report on the home to see if there were any insurance claims on it in the last 5 years that may not have been repaired?

Good Luck!

Emmanuel J. Scanlan
PS Inspection & Property Services LLC
http://www.psinspection.com
214-418-4366 (cell)
TREC License # 7593
International Code Council, Residential Combination Inspector #5247015-R5 (Electrical, Mechanical, Plumbing and Building)
Certified Level I Thermographer (ASNT-TC1A Standards)
Texas Residential Construction Commission, Third Party Warranty Inspector #1593
Texas Residential Construction Commission, Inspector, County Inspection Program
Texas Department Of Insurance, VIP Inspector # 08507061016
Hayman Residential Engineering Services, Field Technician
CMC Energy - Certified Energy Auditor

Knowledge is power, but sharing knowledge brings peace!!
Web Reference: http://www.psinspection.com
0 votes Thank Flag Link Fri Apr 10, 2009
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