In order to save money some people have considered buying properties from an auction or a bank or lender. Sometimes these types of homes can save you a significant amount of money because you're not going up against the general public to buy these homes. Most of the time when you're buying from a direct lender or an auction, they require you to have all the cash out front which means that most people are not able to buy these types of properties because most people don't have that much cash laying around.

If you're interested in buying a home from a bank or an auction these are some things you might want to consider. Are there any reports available on this home? When was the last time there was a home inspection done on this particular property? Does the home show signs of neglect or vandalism?

Most often these types of homes that are approached by Banks or lenders do have to be repaired or renovated in one way or another. It's important to assess all the risks before making such a big financial investment. It's important to hire a home inspector license by the state of California. These home inspectors have been trained and educated to look out for issues that could be present in these types of homes. Important to understand the history of the home and what issues it had before you make this type of purchase. A listing agent or your own broker sometimes doesn't have all the facts associated with the property. If the property has been vacant for several years and nobody knows who the last owner was, sometimes it's very hard to find out the history of the home. When was the last time that the sewer line drain was repaired? Is the current electrical box up to code? When was the last time the roof was replaced? When was the last time any maintenance was done on the property? What happens when there's a significant storm does the water drain out properly or does the home have a drainage issue? These are just some of the questions that could arise when buying a vacant property.

 Bank-owned homes sometimes tend to have numerous issues. Could be simple fixes or they could be major fixes that will cost lots of money to remedy the situation. It's very common that these types of homes have been neglected and that they don't have their utilities turned on. The home inspector can only do so much when there's no running water or power. They will not be able to do a full home inspection when the electrical panel is not powered up. Nor will they be able to check if the home has a water leak. If you have the capability it is recommended that all of the services be turned on so that a home inspector can do a full and thorough home inspection.

It's very important to walk the property yourself both on the inside of the home and on the outside of the property. Do you smell any mold or mildew? Does the ceiling show any sign of water damage? Are all the doors and windows intact? All the components of this home intact has anyone removed any of the appliances, toilets, light fixtures or do they all work?

Another potential pitfall of vacant homes is there's no one to ask if there is a settlement issue on the property?

No matter what type of home you're buying whether it's from a bank or lender or from a homeowner who is present we always highly recommend that you do many types of inspections before you make such a big purchase. These types of inspections include but are not limited to: general home inspection, roof, drain line. If the property is on a slope or on a hillside we also recommend you do a geological and soil inspection.

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Home auctions can present an exciting opportunity for the right buyer.

There are, of course, pros and cons. It's important to assess all the risk before making such a big financial investment. Hire a home inspector licensed by the state of California, who has been trained and educated to look out for issues that could be present. Bank owned homes can present numerous issues, both small and large. It's very common that these types of homes have been neglected and that they don't have their utilities turned on. The home inspector can only do so much when there's no running water or power. They will not be able to do a full home inspection when the electrical panel is not powered up. Nor will they be able to check if the home has a water leak. If you have the capability it is recommended that all of the services be turned on so that a home inspector can do a full and thorough home inspection. Check the history of the home, as well as past inspections. It's very important to walk the property yourself both on the inside of the home and on the outside of the property. No matter what type of home you're buying whether it's from a bank or lender or from a homeowner who is present we always highly recommend that you do many types of inspections before you make such a big purchase. These types of inspections include but are not limited to: general home inspection, roof, drain line. If the property is on a slope or on a hillside we also recommend you do a geological and soil inspection.

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