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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. Cost Approach Determine the cost to rebuild the property, subtract depreciation, and add land value.
Previous improvements, renovations or upgrades done by sellers are typical disclosures, as well as whether work was done with or without permits. The buyer should always do a full property inspection, before moving forward with the purchase. The inspector checks all systems and components from the roof to the basement.
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