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Eric Fernando
  • Montague, NJ
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Sewer scope inspection- Bank owned REO

Eric Fernando
  • Montague, NJ
Posted

I am under contract to buy a bank owned REO. The Utilities have been shut-off. I have scheduled to do inspection on Friday. It has public sewer and water.

Should I do a sewer scope inspection? Any referrals . The house is in Northern NJ

  • Eric Fernando
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    Jon Holdman#3 Real Estate Deal Analysis & Advice Contributor
    • Rental Property Investor
    • Mercer Island, WA
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    Jon Holdman#3 Real Estate Deal Analysis & Advice Contributor
    • Rental Property Investor
    • Mercer Island, WA
    ModeratorReplied

    Even though REOs are usually sold as-is the seller will still consider credits if you find non-obvious problems.  Not so much if you try to get credits for things that are obvious from walking through the house or a problem that's disclosed.  But if you find hidden defects they will sometimes give you a credit for it.

    Around here lots of houses from the mid-1900's used clay sewer pipe.  It moves and breaks and is a really common problem to have to fix.  I've replaced lines on three houses, two of which I still own.  I would never buy a house from the vintage with these clay lines around here without doing a sewer scope during my inspection period.

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