In Part I of the series Inspecting Foreclosures, I talked about the importance of conducting the inspection and in Part II of Inspecting Foreclosures, I touched on the subject of lack of maintenance.
Mechanical issues surrounding the heating and cooling systems, water heaters and kitchen appliances are a huge concern for many potential buyers. If the property is less than 12 years old, one can generally make the assumption that the major appliances will be about that same age. The home inspector will take a look at the serial numbers and guesstimate the age of the units based on the manufacturers data. Generally speaking, most kitchen appliances and HVAC systems are at or are approaching the end of their service lives when they reach 12 years. Professional servicing and budgeting for age related replacement is a must. Generally speaking, replacement of these systems will cost anywhere from $1500 - $2500 per ton of unit.
Water heaters have a very short 6-8 year life expectancy. Most manufacurers will have a warranty of 6 or 8 years on the glass lining. When the water heater has surpassed that time limit, the water heater is living on borrowed time. Another issue with water heaters I find is rust or bacteria build-up.
When a water heater has been setting unused for some time, bacteria can build up in the pressure vessle giving that "rotten egg" odor when you open the hot water tap. Rust from the tank can leech into the storage area due to deterioration of the glass lining. If either of these issues are present, a new water heater is in order. Depending upon the manufacturer, size and type these can run from $600 to $1500 to replace.
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Michael, inspections are so important on any home, but especially on foreclosures. Terrific series!
You bring up a good point with bank owned properties, everything in the home sits unused. That in and of itself can cause thousands of dollars of damage.
Thank you for the great series Michael!
Hope you have a great day!
Paul
Hi Michael
Informative post on the inspection process.
Good luck and success.
Lou Ludwig
Hi Michael-This series is very good and a good reminder to have an inspector that is thorough and knowlegeable. It is a necessity. Have a great day. :-)
Hi Michael.,, wonderful and useful information ..great series..thank you
HELPFULHANNAH
I look forward to each part of this series...good stuff! Educational for sure!
I love this series. I learn something interesting everytime I read your post. Thanks!
Michael - You make very good points. Not only is general age an issue, but the deferred maintenance is a biggie. When owners know they're leaving they are not going to go out and get an air filter for the cold air return...Who knows how much neglect shortens the life of a mechanical system. I bet you do! :-)
Michael-Great informative post.
I am so adamant about my clients getting a home inspection.
This series and many of your other inspector related posts only confirms why I insist on getting a home inspection.
Michael,
We inspectors see way too much duct tape in our lives, of that I am certain.
Michael - What did folks do before the invention of duct tape. Replacement of the hot water heater is essential when it has been unused for any length of time. Most - not all - of these foreclosures will take some money to get them back to where they should be. I've seen some that have been almost totally destroyed.