Buying a Dump
Buying a house for practically nothing seems to be all the rage these days. I cruised through my MLS earlier finding foreclosed, bank-owned, and HUD-owned homes for a buyer. I was absolutely shocked that probably 90 percent of the houses I saw were distress sales - I’m talking about homes valued under $120,000 in my market. So the deals are easy to find, but there are things you’ll need to know:
- If you’re in a hurry, stay away from short-sales. There’s no guarantee that they’ll close in 30 to 45 days. In some cases, it could take up to a year! Short sales are perfect for peole who DON’T CARE how long it takes and for those who DON’T CARE if they have to walk away from the house.
- If you buy something AS-IS, go ahead and hold on to your right to an inspection. Make sure there are no major systems that need to be replaced - an surprise huge expense.
- If an AS-IS home is on septic, get the septic inspected both for capacity and that it works.
- Get the water tested if it’s not city water. There are plenty of places out in the country that still have well water. Don’t think for a second that e-coli or other contaminants can’t have gotten in if it’s covered. You don’t want to spend your new home time in the bathroom - or hospital!
- Be prepared to replace carpet, fixtures, and paint.
- Be prepared to replace the broken heat/air unit.
- Be prepared to buy a new roof, new windows.
- Check the age of the home - if it’s older you may also be replacing the old plumbing pipes.
Buckle up and hold on because it could be a bumpy road. It’s a road that you could maneuver but expect plenty of surprises. And maybe in the end, someone’s trash can be your castle.
