Omaha Real Estate Contributed by David Matney with Alliance Real Estate
This is just a quick post on purchasing a home that is vacant. Most buyers will make an offer to purchase on a home and make the offer contingent on a home inspection. If the home is vacant and the utilities have been turned off be sure to make the offer contingent on the seller having the utilities on for the inspection. This is important so all the major systems can be adequately checked. It is important to specify this in the purchase contract so there are no misunderstandings. Not having the utilities on is like test driving a car by looking at it in a color brochure.
Thanks,
David Matney, CRS,GRI
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With the number of foreclosures on the market, there does appear to be an issue with the lenders keeping the utilities on. Some foreclosures in my area (Naples, Florida) do not have the utilities on. In some cases this is due to REO's not reimbursing real estate agents handling the property for the expenses for 3 or more months.
Are you finding the same thing in your area?
Great post David and very true. This is especially important for homes up north in the cold. You never know if any of those pipes are frozen if the water isn't on.
Sean Allen
Glenn, it really depends many times the buyer has to put the utilities in their name for a day or so. Thanks for the comment.
Sean, it is starting to get cold now and frozen pipes are no fun. Thanks for the comment.
David - this is a great posting. I work with a bank with their REO's and I actually told the bank when we get an offer I turn the utilities on for the buyers. I wish more agents would do that for the buyers without them asking. I did this on a deal last week and it cost me less than 100.00.
Great posting
Vincent, thanks for the comment and for stopping by.
This is great advice for something that often can get overlooked until it is too late.
Keisha, thanks for the comment and for stopping by.
Sean - in Florida, it is not the freezing pipes that we worry about - it is the build-up of humidity within a residence and its affects on the home. Mildew and mold. In addition, if a home has a pool and the pump (filtration system) not working - the pool turns green and the local county code requires the pool be covered with 2x6's and wire mesh attached. Because it is a code violation, there is a fine, daily penalties, late fees, and interest charged to the owner or in this case the lender.
Frankly, I don't understand why lenders are more concerned about the property's condition as it will affect other homes' values in the area, where they may have outstanding loans.
Vincent - I would think that the REO should be responsible for turning on the electricity as you are only the agent and not the owner of the property. Have you asked to be reimbursed for the expense?
In the winter, in areas like Omaha, if after turning the utilities on for the inspection the seller turns the utilities back off until closing, make sure that they have the plumbing winterized. If they don't then the buyer may find a basement full of water during the final walk through.
Troy Trumm - Alliance Real Estate, Omaha, NE
The Trumm Team
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