R1980 Asked: Real Estate: Open Permits on Foreclosure?

Looked at a foreclosure for 40k (values in the area around 30).We want to offer 20; is this reasonable considering the following (also, what's involved in fixing these)?

Paperwork says
– Sewer Inspection needed
– Electric final
– Finalized Permit
– Drywall rough box
– Conduit Wall
– Lighting rough
– Rough in alarm
– Final coast lighting
– 2nd flyer is a permit nubmer that says "Job not complete"

Also, floors buckled (think it's a busted pipe under house (concrete block home)

** Is 20 a reasonable offer -and- any idea in whats involved to bring this up to code?**


loanmasterone Answered:
Your best bet prior to the making an offer on this property is to obtain the services of at least 2-3 general construction companies, to obtain an estimation of the cost to repair the items you have mentioned. Once you have obtained these estimates, make them a part of your offer as to the cost to repair this damage.

Cross check these estimates with electricians and plumbers, roofers and others that specialize, not that of a general contractor.

You might also want to check with the city housing permit and inspection department to find out what has been approved and not completed in order for the property to be inhabited. This is public information and may copies might be obtained with a small fee to the city housing department.

You would want to make these permits and inspection reports as part of your offer also. Make sure you have sufficient photos of the property to submit with your offer.

It might be that once you have obtained the estimates to repair the property you would want to make a smaller offer or no offer at all. It might be that to repair this property would exceed the property value.

Do your home work and cross check all information you obtain. A mistake could be devastating to you financially.Unfounded damage after you make the purchase is your responsibility.

I hope this has been of some benefit to you, good luck.


real estate guy Answered:
you need to talk with the permit office and see how they handle this.In my area, the permits would be closed since you were not the original party that applied for the permits.

as for the value of this property.Its impossible to say.

Got a better answer? Share it below!

Tagged with:

Filed under: Home Security Questions

Like this post? Subscribe to my RSS feed and get loads more!