Let's face facts...buying a foreclosure isnt exactly a simply process. In fact, some would say the entire process sucks.
But, it can actually be even worse than you thought originally for your client without recognizing these 10 simple red flags. Knowing what to look for can save your clients thousands of dollars in the long run...
1. Air Quality: The air quality inside will tell you a lot about the over-all condition of the home. Musty or dirty smells can mean mold and mildew has developed. Perhaps a water leak...perhaps a leaky roof. Make sure you include air and surface testing in your home inspection. Yes, it costs money. But, that is a few hundred dollars well spent.
2. Peeling, bubbling or discolored paint: 9 times out of 10 this is caused by moisture...moisture that can cause mold. Swelling in walls or ceilings or a musty odor immediately point to water damage. Make sure you check the major surfaces in all areas around the kitchen and bathroom and UNDER these same rooms as well.
3. Missing sinks or other fixtures: We have all seen the news stories of disgruntled home owners that have been foreclosed on tearing out kitchen cabinets, toilets, sinks, etc. Make sure that, if the home you are looking to buy is missing these things, that they were removed properly and not simply torn from the wall or floor. That is the difference between replacing a toilet and replacing a wall, a floor, some plumbing, and a toilet.
4. Unheated during the winter: If the home was winterized properly, you have nothing to worry about. But, if not...there is plenty to worry about. Without it, water in pipes can freeze cracking seals, cracking pipes (both inbound and outbound) and potentially causing major water damage. Check all water lines leading to and from water heaters and all fixtures and the drain lines leading to the main sewer line until it leaves the structure.
5. Fungus growth: Fungus requires water to grow. If you find mold, there was or is water there. However, water flows downhill. So, look for the source of the water above where you find the mold.
6. Blocked drains: Blocked pipes will cause any number of potential issues including a sewage backup. Make sure all of your drains work properly and toilets flush with no issues.
7. Older homes with lots of renovations: Check with the city. Hopefully, these major renovations are tracible by being able to pull permits for the work that was done. Many older homes had asbestos (either in the insulation or in the tiles used). Make sure that any disturbance to this type of material was handled by trained professionals and that they potential risk is eliminated.
8. Excessive painting: Any "fresh" paint is subject to inspection. Especially if they felt the need to paint the molding, doors, even the wood floors. This is one of the main ways that people try to cover up the existence of mold. Out of sight, out of mind, right?
9. Discolored subflooring: When you are inspecting the basement, make sure you look up. Check out the subfloor above your head. Make sure you look for any evidence of discoloration or darkening stain residue. Also, look for holes in the subflooring that moisture could gather and create potential hazards later. Inspect those well to ensure they are dry and dont contain mold already.
10. Dingy walls or black cobwebs: If the walls have a dingy grey film on them or the light fixtures have a thin black cobweb-type appearance, you may be dealing with soot damage. Soot damage would be from several potential sources: a previous fire; a plugged chimeny associated with a wood stove; maybe even a malfunctioning furnace. Have your chimneys professionally cleaned and make sure that the furnace is tested by people that know what they are doing.
Yeah, you can get a great deal on a foreclosed home. But, knowing what to look for when in the buying process is the difference between getting a great deal...and buying a money pit.
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Charming: Small. See also, "Tiny". Snow White might fit, but five of the dwarfs would have to find their own place. See also "Cute," "Enchanting," and "Good Starter Home."
Easy to heat: See “cozy”.
Lots of storage space: The basement is too small to be called a family room.
Natural setting: Forget about planting anything because the deer will eat everything in your yard but the sagebrush and knapweed.
Park-like setting: There is a tree located somewhere on this block.
Townhouse: A 3 story walk-up on the north side that is sandwiched between two others that look exactly the same. Not only can you hear your neighbors fight, but you hear when they play music, watch TV, use the bathroom, or blink.
Okay, I've had enough.

"Your letter regarding title in Case No. 189156 has been received. I note that you wish to have title extended further than the 194 years covered by the present application. I was unaware that any educated person in this country, particularly those working in the property area, would not know that Louisiana was purchased, by the U.S., from France in 1803, the year of origin identified in our application. For the edification of uninformed FHA bureaucrats, the title to the land prior to U.S. ownership was obtained from France, which had acquired it by Right of Conquest from Spain. The land came into the possession of Spain by Right of Discovery made in the year 1492 by a sea captain named Christopher Columbus, who had been granted the privilege of seeking a new route to India by the Spanish monarch, Isabella. The good queen, Isabella, being a pious woman and almost as careful about titles as the FHA, took the precaution of securing the blessing of the Pope before she sold her jewels to finance Columbus' expedition. Now the Pope, as I'm sure you may know, is the emissary of Jesus Christ, the Son of God, and God,it is commonly accepted, created this world. Therefore, I believe it is safe to presume that God also made that part of the world called Louisiana.
Someone please explain that to the braintrust of Re/Max of New England.
Because everyone needs to be reminded how not to suck....
You see...like this example, some aspects of your sales ability are painfully obvious to your customers. But, some of them are much more subtle than this example...Subtle enough that you probably don't even know that you are doing them. But, your clients know. Believe me!
BE ACCESSABLE! Answer your phone whenever possible. Reply to all messages and email within a maximum of 6 hours. Make sure that your clients understand that you are there for them and that you appreciate the fact that they trusted you enough to want to contact you.
IMAGE: You chose a career in real estate to be an independent business person. So, do you carry yourself in a professional manner? Do you "look the part"? Do you have your business cards on you? Are you showing that you are proud of whom you work for or what you do? Whether you want to believe it or not, your image IS your first impression. Make sure that the impression you are making is the on that you actually want to make. There are some places where you can get away with blue jeans and a nice shirt. There are other places where a suit is more appropriate. Dress the part! Maintain your personal image. Get your hair cut or styled. Ladies...get your nails done. Guys...shave every day. (Believe me, I realize that sucks ...I'm a guy...I understand. But, its 2 or 3 minutes...and it makes a ton of difference to those around you.) I actually know of one agent that wears a tuxedo to all of his closings. That is part of his image. It is what sets him apart from the rest. (His name is
YOU: Seems weird that I have to add this since this entire post is about you. But, if you are not taking good care of yourself, you will not have the energy or the will to commit to the rest of this list. Take care of your own body and mind. Get sleep. It is probably more important than anything else you can do for yourself. Make sure you get some exercise. (In this industry with showing property and running from one location to another, that usually isn't hard...but you should do 30 minutes of cardio every day.) Eat right. (Did you know that eating an apple will actually wake you up better than a cup of coffee??) Bring fresh fruits with you on your appointments and eat them when you can. Avoid the drive-thrus. If you don't know where else to start in your investments in you...look in the mirror and start there.
