Buying a bank-owned property can be a great way to get a good deal on your next home. But there’s one important thing to keep in mind about distressed properties: Even with a thorough inspection, you may not discover all of the property’s flaws until after you move in or start working on upgrades and renovations. Here are two things to keep in mind:
The bank didn’t live in the property. Property disclosures with bank-owned properties are tricky because banks often don’t have much information about the property’s condition. For example, it’s difficult to pinpoint issues with plumbing unless you’ve lived in the house and use the sinks and toilets regularly. A home inspector often can discover most problems, but there can be hidden issues.
Vacant properties can have more hidden problems. The more time a building is empty, the more likely it is that the house will need some extra care.
When buying a home with an unknown history, an inspection is important. But you should be prepared – financially and mentally – for the fact that you may discover some unanticipated issues after you sign the dotted line.