Ask the New Owners of a Duplex Purchased Through a Short Sale.
We closed escrow on a Duplex located at 5945 Moss Creek Circle in Fair Oaks about two months ago. The Buyer did employ North American Home Services to inspect the property for defects and completed a structural pest inspection.
While this Duplex was in surprisingly good condition given that it was a short sale, there were a few items of concern. While most of them were minor there was a potential issue that could lead to a problem in the not too distant future according to the inspection team.
What I urged the Buyer to do to mitigate some potential large expenses was to purchase a one year Home Protection Plan from Old Republic Home Protection Company which cost, I believe, just a bit under $500.00.
If you didn’t know about this service, it’s not just for Single Family Homes. You can purchase this service for a Duplex, Tri-plexes and Four-plexes and if you are an investor, I suggest you make this part of your initial costs going in and I strongly urge you to renew the plan at the end of the first year.
In the case of this new investor, the Central Air conditioning unit’s compressor in one of the units required a major fix. In fact the compressor, a major component of the system had to be replaced at a cost of $1,700…!
Because the Investor had this coverage, his only out of pocket costs are the deductible for a trade call of $50.00 and the cost of removal and disposal of the old equipment, which was $100.00.
So… Do you think the Investors got their money’s worth purchasing this plan…?
I hope you found this useful and informative…
Make it a great day…!!!
Ed Favinger, Broker CRS, GRI, SFR, 916-203-1260 favinger@rwnetwork.com
Related articles by Zemanta
- Short sales- making your real estate contract indestructible (agentgenius.com)
- Seven must-have real estate contract conditions (theglobeandmail.com)
- Ins and outs of home inspection (seattletimes.nwsource.com)
Leave a Reply