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Updated over 7 years ago, 05/17/2017
Tips on house inspection before auction
I've identified a few houses to bid on during an upcoming auction, however, I wanted to hear some tips on how to inspect the house before the auction. Obviously you shouldn't break into the house and even stepping on the property can be considered trespassing, but are there any tips or recommendations on what to look for in the house or how to do a site visit. I plan to do the obvious, which is look for water damage, major cracks suggesting internal or foundation problems, termites, etc. but would love to hear what others have to say. Anyone have experience in hiring inviting a local inspector for lunch and cruising past the property?
#2 Real Estate Agent Contributor
- Real Estate Broker
- Coppell, TX
1. You're thinking all the homes are vacant and it is safe walking around?
2. Personally I like occupied vs vacant.....better chance it is livable...
3. I look at roof...how old...how does it compare to neighbors...will it last or will it need to be replaced.
4. Windows...broken or not, replaced or not, any alignment issues (foundation), do they lock?, can I keep them or will they need to be replaced. Again also looking at neighbors.
5. Electric meter....is it there, what's electric look like...new panel or old....is the power connected from utility pole?
6. Paint...will I need to paint and if so how much? Trim only? Entire wood house? How much prep is needed? Any rotted wood that needs to be replaced? Any squirrel or rat damage?
7. What's the neighborhood look like? Is this house better or worse? Are the neighbors happy you bought it and will fix it up? or do they see it as a chance to get new appliances and an outside HVAC unit at your expense? You can fix the house, but you can't fix the neighborhood.
8. How old or new is HVAC unit? Is there HVAC and window units. That can indicate it's not working.
9. Depending on the age of homes...or location...what kind of sewer...city or septic....if super old..have they replaced sewer lines to the street? Have the neighbors done it?
10. Who lives there? Owner or tenants?
11. Occasionally you can talk to owners, tenants, or neighbors. Neighbors usually tell you the most.
12. If you can get behind the house, like in the alley if it has one that is good too. Sometimes the front looks great, and the back of the house is gone.
This probably sounds mean, but I'm thinking if you think you need an inspector to go with you, you shouldn't be buying. You don't know the risk. You don't know the repairs. You don't know the costs. I'd be surprised if one goes with you for 1/2 day or day for price of lunch. You might flip it....ask if you can assist him for a day or every day for a week and you buy lunch. Then you see what they're looking for....and perhaps the differences in all these things..new roof vs old vs one that needs replacement...so you know what to look for. You can get a sample report, maybe they will help you guess at cost of repairs.
Be a Buffet.....buy what you know.....or be the best value investor out there to buy cheap enough to fix what you don't know.....price in risk....too many investors don't.
If you find a checklist somewhere, please let me know. If not maybe we can create one.
I have a contractor buddy and this is what we do on Sundays. Ride around and "check" out these properties. If it is abandoned most of the time it ain't secured very good anyway. Neighbors don't question people riding in work truck, in work clothes, with flashlights & clipboards. They automatically think that you have cause to be there.
@Alisha D. knows I'll pull my crowbar out anytime.
I have witnessed it firsthand. She is a master at that crowbar
Originally posted by @Bruce Lynn:
1. You're thinking all the homes are vacant and it is safe walking around?
2. Personally I like occupied vs vacant.....better chance it is livable...
3. I look at roof...how old...how does it compare to neighbors...will it last or will it need to be replaced.
4. Windows...broken or not, replaced or not, any alignment issues (foundation), do they lock?, can I keep them or will they need to be replaced. Again also looking at neighbors.
5. Electric meter....is it there, what's electric look like...new panel or old....is the power connected from utility pole?
6. Paint...will I need to paint and if so how much? Trim only? Entire wood house? How much prep is needed? Any rotted wood that needs to be replaced? Any squirrel or rat damage?
7. What's the neighborhood look like? Is this house better or worse? Are the neighbors happy you bought it and will fix it up? or do they see it as a chance to get new appliances and an outside HVAC unit at your expense? You can fix the house, but you can't fix the neighborhood.
8. How old or new is HVAC unit? Is there HVAC and window units. That can indicate it's not working.
9. Depending on the age of homes...or location...what kind of sewer...city or septic....if super old..have they replaced sewer lines to the street? Have the neighbors done it?
10. Who lives there? Owner or tenants?
11. Occasionally you can talk to owners, tenants, or neighbors. Neighbors usually tell you the most.
12. If you can get behind the house, like in the alley if it has one that is good too. Sometimes the front looks great, and the back of the house is gone.
This probably sounds mean, but I'm thinking if you think you need an inspector to go with you, you shouldn't be buying. You don't know the risk. You don't know the repairs. You don't know the costs. I'd be surprised if one goes with you for 1/2 day or day for price of lunch. You might flip it....ask if you can assist him for a day or every day for a week and you buy lunch. Then you see what they're looking for....and perhaps the differences in all these things..new roof vs old vs one that needs replacement...so you know what to look for. You can get a sample report, maybe they will help you guess at cost of repairs.
Be a Buffet.....buy what you know.....or be the best value investor out there to buy cheap enough to fix what you don't know.....price in risk....too many investors don't.
If you find a checklist somewhere, please let me know. If not maybe we can create one.
Thanks for the info. I don't think I need an inspector, I've fixed up places before, I was just curious to hear other people's stories and any one-off tips. I have some resources with my dad building a few houses from the ground up and 2 of my uncles being GC's, I can have one of them come with. Thanks!
#2 Real Estate Agent Contributor
- Real Estate Broker
- Coppell, TX
@Michael Lucero that's probably enough experience at the price point you want to buy. You want deals where some repairs don't matter as much. I think most of the times inspectors are for properties where you are paying top dollar....that's where it makes a difference. I don't know what you have to pay in CA for tax properties....if you have to pay close to market or not. I'm hoping you can get significant discounts.
@Michael Lucero , talk to the neighbors. Especially if it's a good neighborhood. They want someone to buy that house, and they will tell you all about how the last tenants ripped out the copper wire/pipe and cooked meth in the kitchen, or about how nice the tenants were and how sad they were to leave.
Originally posted by @Mindy Jensen:
@Michael Lucero , talk to the neighbors. Especially if it's a good neighborhood. They want someone to buy that house, and they will tell you all about how the last tenants ripped out the copper wire/pipe and cooked meth in the kitchen, or about how nice the tenants were and how sad they were to leave.
Thanks Mindy, definitely will talk to the neighbors!