Short sale inspections

[asihi]

I just got a 2nd call from someone asking if I do short sale inspections. What these people want are partial inspections at a reduced rate. Most banks are requiring the inspection to be done before the contract is accepted and these people don't want to pay full price for an inspection on a building they may not even get.

One person said that her attorney told her that this is done all the time. I personally don't want any part of this, but I was wondering if this is a service that some of you guys provide. If so, what do you inspect and exclude? Do you use a completely different contract?

Tony

[Neal Lewis]

We don't have too many short sales around here. But, if they want a partial inspection and want to pay what I'm charging, i'll gladly accept the cash. It could always to lead to referrals for other inspections.

[Mike Lamb]

I do short sales all the time and it is really no different than a regular inspection so I don't know what these buyers are even talking about. I'm sure they want a structural and mechanical evaluation. And that is basically a full inspection and a full inspection fee. Do they even know what they are talking about?

I assume they want a report. If they don't, how about just doing a walk and talk, where there is no report but just information as they follow you around. When I do these I usually knock off about 75 - $100. And yes, when I do these there is a special agreement stating that this is not an Illinois licensed home inspection, etc., etc.

[kurt]

Minimal upside, huge downside. There's no good argument for doing partial inspections with reduced fees.

[Marc]

I do short-sale inspections. I call them home inspections and no one gets a discount.

'Price shoppers' be gone.

Marc

[Tom Raymond]

Most banks are requiring the inspection to be done before the contract is accepted and these people don't want to pay full price for an inspection on a building they may not even get.

Most Banks have paid some schmuck $50 to "winterize" the building, then promptly forgot about it. I know of one house in particular that has been vacant for 5 years, and unlocked for at least 3. I have been past it more than once and the doors have been open.

One person said that her attorney told her that this is done all the time.

Someone is talking out their ass. My money is on the lawyer.

I personally don't want any part of this, but I was wondering if this is a service that some of you guys provide. If so, what do you inspect and exclude? Do you use a completely different contract?

Tony

They need a thorough inspection. Maybe even beyond one. No one is going to fix anything or renegotiate after the offer is made.

[Eric B]

I personally don't want any part of this, but I was wondering if this is a service that some of you guys provide. If so, what do you inspect and exclude? Do you use a completely different contract? Tony

Hi Tony - where ya been???? Remember Illinois' definition of a home inspection - where two or more systems are inspection it should be done under the State's SoP. I also have many S.S. jobs but don't remember ever being asked for an abbreviated job. Documenting what I didn't do wouldn't be worth the effort. I've been doing inspections the same way for years - asking for something less would just gunk up my brain cells.

[hausdok]

Hi,

I do short-sale inspections all the time. What they pay depends on what they're asking for. If they want to do a pre-offer consultation, my time is limited to 90 minutes, they don't get a writteen report, and I'll only look at those items specifically listed in the contract - the boiler could be vibrating and ready to blow and I'm not going to say a thing about it unless it's been specified in the contract. As soon as they ask me to go outside the parameters of the pre-offer consultation contract they are in full home inspection territory and I'm required to prepare a written report and fully comply with the SOP - that means full fee.

If they hire me to do a home inspection - they've already made the deal with the bank and the bank has basically said that what you see is what you get, don't ask for anything - then it's full fee 'cuz it's no different than doing a job for someone where the seller who is not a bank says, "I don't care what you ask for, you ain't getting it; what you see is what you get."

Don't let some cheap SOB toss a made-up story at you about his "attorney." No attorney is that stupid. They might be blood-sucking vampires without a heart but they're not stupid.

ONE TEAM - ONE FIGHT!!!

Mike

[John Kogel]

It sounds like they may be looking at several houses? I think you can do one hour or 90 minute consultations and not be violating the rules, helping them steer away from the real money pits.

But when they want paper work to go with it, then it's an inspection, full fee.

[Darren]

We don't have too many short sales around here.

What, so you live in an 'upscale' area that's not subject to the financial woes of us paupers?

[Tom Raymond]

In my market short sales are worse than foreclosures. It's what happens a year or two after everyone involved has raised their hands and walked away. The owners are out, the bank refuses to foreclose, and it's only listed because of outside pressures. The towns want their tax revenue, the homeowners association wants the eyesore taken care of, the neighbors have bitched long and loud enough to get someone to move.

The house in my last post was purchased with a HUD loan from HUD inventory. It's been abandoned twice. I know the agent, there has been a cash offer on it for over 7 months. The bank still hasn't responded.

[Neal Lewis]

We don't have too many short sales around here.

What, so you live in an 'upscale' area that's not subject to the financial woes of us paupers?

OK, I should say I don't DO many short sales. Plenty of upscale paupers around here. I've even knocked a few jockeys off the rich people's lawns...

[Darren]

[i've even knocked a few jockeys off the rich people's lawns...

I bet you have!

But, the real question is ...Did you ever wake up in the morning with the Zomby Woof behind your eyes?

Seriously, how's business over there in Bergen County? February's been good and March is starting off great! The one thing I am noticing is about half the houses I inspect are vacant.

[Neal Lewis]

Darren, January we were up 30%. February trailed off at the end, but we were still even with 2012. We're booked up a week in advance right now. Not noticing an upswing in vacant houses. I wouldn't mind, though.

[Inspectorjoe]

I too have been doing a lot more vacant ones lately. My last six in a row were vacant. That's a record. I've been going gangbusters, and this Jan-Feb was about 15% above last year, but things suddenly ground to a halt. I have nothing booked now til next Monday.

Back to short sales. I'd never do an abbreviated inspection at a discount, for the reasons already given. With most of the short sales I've done, the sellers were still occupying the property. I'm sure I've done inspections that were short sales without knowing it. Usually, the only time I know, is then the agent or buyer mentions it some time during the course of the inspection.

[In-Depth]

The last couple of years we had some dumbass here offering to do full inspections prior to making an offer to the bank, and only requiring payment if the bank accepted the offer.

Of course, I was asked if I would offer the same deal.

Of course, I said absolutely not!

Jim

[stubrooks]

I've almost existed on short sales and foreclosures for a while. The market was really hot when the first time home buyer tax credit was in effect. The real estate agents would always say, "This inspection is for information purposes only. The house is sold AS IS". I stopped asking what was that supposed to mean. I never got a good answer. It certainly didn't change the depth of the inspection. Gee, I thought that was what an inspection was for, information on the condition of the home and systems at that point in time. I don't worry about aesthetics and cosmetics.

[Marc]

I've almost existed on short sales and foreclosures for a while. The market was really hot when the first time home buyer tax credit was in effect. The real estate agents would always say, "This inspection is for information purposes only. The house is sold AS IS". I stopped asking what was that supposed to mean. I never got a good answer. It certainly didn't change the depth of the inspection. Gee, I thought that was what an inspection was for, information on the condition of the home and systems at that point in time. I don't worry about aesthetics and cosmetics.

Agents that say that have a mangled brain. It doesn't make sense. Ignore them.

Marc