Most people will go through a procedure to buy a house. As part of the process, home inspection and the neighborhood is also in the process. But a few home buyers do not have these steps in the process because of various reasons. These buyers are more depending on virtual tours, MLS (Multiple Listing Services) descriptions and the photos on Internet. The buyers or investors who are staying in other states, due to high demand in that area institutions buy the entire property blocks are some of the reasons to do not see the sight before they buy.
- Defects of the property: It is easy to hide and cover with furniture and the camera angles of damages to the home like structure, mold, water and infestation. The photos and the descriptions cannot explain the environment of the house. Those are like nearby pollutions, neighbors activities, the area of the house and property etc. Some owners may not do the fixes to the defects because of lack of money for maintenance or adjusting with inexpensive material. If you bought the house as an investment tool, you again need to spend a lot of dollars on the property, as well the house will not easily move in the market immediately without those repairs.
- Distressed properties: The distressed properties are generally advertised by the bankers or by the lenders. These are in poor or damaged condition. Most of the property holders try to unload these properties quickly. Because these are expensive, for maintenance they have to bear nearly up to thousand dollars per day in the form of legal fees, maintenance expenses and property taxes. Quick sale will make financial sense to those institutions, so they even offer discounts on the properties. It is really an excellent opportunity to both real estate investors and the buyers to get the property at below market price.
- Incomplete homes: Incomplete or pre-construction properties also provide a significant opportunities to the investor or the buyer. These may be partially completed or the construction not yet started. In this, both the builder or the seller and the buyer both will get benefited. To prove the project viability to the lenders, the builder need to show them some construction, for this some funds are required. The buyers can purchase at lower value and can sell at market rate or above after the construction completed.
The inspection contingency is an important one while you are buying a property without seeing it. It provides the right to the buyer to get the property or house inspected within a specific time period, usually five to seven day. If the inspection found that the house is not in a good condition, the buyer can cancel the contract or negotiate for the repairs.