I'm looking at a bank-owned house that definitely needs some repairs, and I've got the funds to do it. However, my realtor just discovered that the owner never had the roof or an egress window inspected by the city, plus there was work done on the deck that didn't pass inspection either. I'm worried: if I buy this house, will I be stuck dealing with these issues later on, especially when it comes time to sell? Am I going to have to pay fines as the new owner if these problems aren't fixed?
4 Answers
You probably won't get fined directly, but be prepared to fix these issues yourself to get a Certificate of Occupancy when you sell it later on.
Insurance might become an issue if the property isn't up to code. They could refuse to insure it or hit you with a huge premium. It might be wise to ask the seller for a discount that's more than the repair costs or get them to fix the issues before you take over. If it's not resolved, the city could deny you a certificate of occupancy down the line.
I get it, but since the owner passed away in 2017 and things have been stagnant, I'd be cautious too despite the potential equity.
When you buy, you take on all the problems connected to the property—no escape from that! Just make sure you're ready for whatever comes with it.
If you get everything up to code and pass inspection, selling it later won't be a problem at all. I bought a really messed-up place last year and after some renovations, my investment doubled in value!
Yeah, it's bank-owned. Finding out more about the situation has me worried, though.