Shrewsbury, MA · Member since 2016 · 65 posts · 13 votes
Hi Everyone,
If a property is owned by the bank (short sale), how do you even check to see if there are no plumbing issues or electrical without turning them on? Should I go ahead and pay for it to make sure there are no major plumbing/electrical issues?
Does this apply for flipping houses as well, when the utilities are turned off?
How much does it usually cost to get the utilities up and running?
@Syed Khan If it is vacant more than likely you can turn them on in your own name. Also if you want to have it on for your inspection date/time, I would also suggest calling a few days before you inspection date to have it be turned on so that there won't be any issues during the inspection day.
In a short sale, the bank does not yet own the property.
You could ask the seller and you can ask the bank, however both parties will likely refuse and tell you to ask the other person. The listing broker may put them in his/her name for the sake of getting the deal done. If all else fails, you can turn the utilities on in your name if you are serious about the property.
I would start with the bank and see where you get.
@Syed Khan If it is vacant more than likely you can turn them on in your own name. Also if you want to have it on for your inspection date/time, I would also suggest calling a few days before you inspection date to have it be turned on so that there won't be any issues during the inspection day.
If a property is a short sale it is still owned by the individuals on title. If the bank foreclosed and purchased back the home then it is a REO. If the property is a short sale and the utilities are not on then someone will need to have them turned on in their name to complete the proper inspections.
If a property is owned by the bank (short sale), how do you even check to see if there are no plumbing issues or electrical without turning them on? Should I go ahead and pay for it to make sure there are no major plumbing/electrical issues?
Does this apply for flipping houses as well, when the utilities are turned off?
How much does it usually cost to get the utilities up and running?
Thanks in advance!
if a property is owned by a bank...it's not a short sale. to your question...depends. If you want to find an answer to a question, sometimes you have to pay to know. How much will it potentially cost you to NOT know the answer? Seems like $300-$400 to answer your question could save you thousands in unknown costs to rehab a property that needs work. Not willing to spend that money? Maybe this isn't the right investment channel for you. Not saying that's the case here, just saying it's a cost of doing business in this business.
Thank you for the great advice. How much do you think it will approximately cost to turn them on?
You would need to verify first with the owners if its okay to put in your name. Then just call up the utility company. they may ask for a $50 deposit or more depending on credit. This probably would need to be done first so that your inspection person can have what he needs to check everything.