Why a Office Inspection is important on a foreclosed property

When a property is foreclosed on, it’s a good chance the Office will sit vacant for a long time. While in the mortgagors possession, a management company is assigned to the office to keep the grass mowed and address any issues that might cause the property from deteriorating. Most of these offices are sold “as is” and usually not maintained properly from the previous owner. The way these properties are maintained from the mortgagor is what’s called “preservation”. This doesn’t mean the property will be repaired necessarily but only “preserved” to keep the Office from getting in worse condition than it was when received.

There is a high rate of vandalism with these properties and the common issues are copper theft including electrical conductors, mechanical systems removed, plumbing fixtures, etc. This is where a contractor comes in again to “preserve” the property. In most cases, these repairs are inadequate and a temporary fix, if that. There’s usually no utilities on at the property (electric, water, gas, etc.), so testing these so called repairs, aren’t done.

The pricing of these Offices can be intriguing. While there are some foreclosures that are in decent shape with only minor repairs needed, the majority could be a money pit where the cost to repair these items to today’s building standards will exceed the value of the Office and it’s market area.

This is where a Office Inspector with experience in foreclosed properties can help you understand just how much additional work will be needed before purchasing.