Newark, DE · Member since 2018 · 9 posts · 0 votes
Hey BP community. I am trying to purchase a REO property and all the utilities are turned off. My agent just called me and said that the bank would not pay to turn them on for the inspection. Does anyone have any experience on how much it would cost to turn them on in Wilmington Delaware?
Property Manager · Middletown, DE · Member since 2017 · 28 posts · 9 votes
8y
Hi Kevin,
I haven’t ever been charged to turn them on. Have only been charged for usage. If you’re just utilizing it for the inspection, it shouldn’t be too much.
Keep in mind that for rentals you’d have to have the utilities on for showings, etc. So it may be easier just to keep it going if you purchase the house depending on the time frame.
Property Manager · Middletown, DE · Member since 2017 · 28 posts · 9 votes
8y
Hi Kevin,
I haven’t ever been charged to turn them on. Have only been charged for usage. If you’re just utilizing it for the inspection, it shouldn’t be too much.
Keep in mind that for rentals you’d have to have the utilities on for showings, etc. So it may be easier just to keep it going if you purchase the house depending on the time frame.
Thank you. I do plan on keeping the property as a rental. That is a good idea to keep them on and not turn them off again.
If everything goes well closing should be the last week of June. This will be my first investment property.
There is a good chance you wont have the option to leave them on. Most banks will make you pay to shut them off again due to the fact so many properties fall out of contract. Just because you tell them you're going to buy it doesn't mean it happens.
As for paying to turn them on...you're probably looking at a few hundred dollars total. It will also delay your timing so you need to make sure that you have that built into your due diligence timing. Having DelMarVa come out can be a huge PITA. If the gas has been shut off for more than a year they'll need to inspect the gas line. If you don't own it than I don't know if they'll charge for this or not. An electrician is probably just a quick service fee. The majority of your cost will be in de-winterizing.
Property Manager · Middletown, DE · Member since 2017 · 28 posts · 9 votes
8y
Kevin,
Congrats!
Let me know if there’s anything we can help with along the way. We own quite a few properties in the area and are happy to help in any way we can!
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
8y
@Kevin Gorum you can have a plumber do a pressure test on the supply side of the plumbing with an air compressor . And an electrician can use a generator to test the electrical . Or the electrican can pull the meter and bridge the meter to check .
Newark, DE · Member since 2018 · 9 posts · 0 votes
8y
Thank you everyone for your input. You all saved me a lot of time trying to figure out this situation. I will call the utility companies and ask what their fee is for turning on the utilities then go from there.