The good news for the Los Angeles area (and much of Southern California), is the current housing boom. Though there has been a wide array of projected statistics, we do know that housing prices have increased at least 5% this year, with some estimates up to 28%. But don’t let that fool you. Though foreclosure activity has dropped considerably this year, there are still some very good “bargains” around.
If you are interested in a foreclosed property, or if you’re looking at buying a short sale, be sure to have the home thoroughly inspected. Short sales and foreclosures are usually done because the homeowner is unable to pay the mortgage anymore. Now that is sad news for homeowner, but potentially great news for the house hunter.
Some properties are being sold “as is”, (like that section in Ikea, where damaged furniture is sold at huge discounts). You know when you see those words there is most likely damage to the property, or it is very outdated. It may be obvious – holes in walls or floors, old appliances and fixtures, but there may be things that are not visable to the potential buyer and can only be discovered through a home inspection.
Does the property have a newer piping system? Old pipes can cost a homeowner a lot of money and annoyance down the road with plumbing problems such as leaks from corrosion. The leakage from corroded pipes can contaminate the water and make it unfit for drinking, cooking or even bathing.
What about the roof? Chances are a homeowner who has fallen into financial difficulties has not been able to keep the roof in good condition.
Of course there are many, many other items an inspector looks at. But you get the idea. Your bargain home may not be such a bargain. Be sure to get it inspected before making a decision on whether to purchase the property or not.