Nationwide, about 20 percent of all bank-owned properties are vacant. Why do so many foreclosures remain empty for many months, even years? The answer lies in the length of the home repossession process. Nationwide, it takes an average of 477 days to complete a foreclosure – in some states more than 700 days.
Vacant properties can add a layer of risk to the home buying process. Homes can suffer a variety of problems if the owners left quickly, unexpectedly or some time ago. In some cases, homes aren’t properly winterized, while in other cases time spent vacant can mean that small problems such as a water leak can turn into big issues. Also, if the water and electricity is turned off to a home, it can be difficult to detect a number of problems.
If you’re thinking about purchasing a bank-owned property, it’s imperative that you get a thorough home inspection due to the as-is nature of the sale. Consider it especially important if the home’s been vacant. And insist that the water and electricity be turned on before the home inspector arrives. Beyond a general home inspection, you may want to have a pest control company take a look, too. In homes that haven’t been lived in for quite a while, termites and other pests can set up shop and thrive.
A vacant home also can be a challenge on the insurance front. You’ll want to make a call to your homeowner’s insurance provider, providing them the address of the home you’re thinking about buying. Insuring a vacant home or one that is in poor condition could be more involved and costly than one that’s in good condition and lived-in.
For more information about buying a vacant home, read this informative story.