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That’s why a complete home inspection is essential when looking at REO properties. Inspectors need to note any visible damage, check how well major systems are working, and estimate the cost of repairs. Factors like property condition, market competition, and holding costs must be considered for an accurate appraisal.
It is the seller's chance to reveal anything that can negatively affect the value, usefulness or enjoyment of the property. Disclosure laws vary from state to state, even down to the city and county level. The buyer should always do a full property inspection, before moving forward with the purchase.
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