Gilbert Real Estate Blog
~ by Randy Hooker of Dreamcatcher Realty
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7th Thing You Should Know About Buying Foreclosures in Gilbert, Arizona
In the first six installments of this series (1st Thing You Should Know About Buying Foreclosures, 2nd Thing You Should Know About Buying Foreclosures, 3rd Thing You Should Know About Buying Foreclosures, 4th Thing You Should Know About Buying Foreclosures, 5th Thing You Should Know About Buying Foreclosures, 6th Thing You Should Know About Buying Foreclosures) I wrote about Terminology, Pricing, Multiple Offers, Response Time, Property Condition and Repairs – as they relate to “Things You Should Know About Buying a Foreclosure.” Here’s the 7th post of the series:
- Utilities – Most banks/sellers will agree to turn on water and electricity to the property in order for a professional home inspection to be conducted. However, some banks/sellers flat out refuse to turn on the utilities. The primary issue here is that it’s impossible to check out a gas furnace, water heater, range/stove, fireplace or any other gas appliance when the gas not on. And it’s impossible to check out or inspect plumbing and electrical systems and appliances when the electricity and water are not turned on.
And to add further insult to possible injury, if turning on the utilities by the buyer results in damage to the property (like the house blowing up, burning down, suffering water damage, etc.), the bank/seller can technically hold the buyer responsible – a risky proposition at best.
Why would a bank/seller refuse to turn on gas, in particular? The explanations always come down that the seller does not want the extra liability and exposure to potential hazards involved in turning on the gas. But in my experience, that’s a load of horse hockey! Truth be told, I fully believe it has more to do with a listing/seller’s agent or bank/seller’s asset manager who does not want the extra hassle and time commitment that’s involved with having to wait on the gas man to physically go to the house, inspect the meter and pressure, double-check the gas appliances, light the pilots and otherwise make sure the property is safe from any gas hazards. And I find it extremely interesting that if the gas company detects ANY type of leak or problem, they will NOT turn on the gas. Of course, in that event the seller would then be obligated to find and fix the problem(s), but there’s no way in hell that the gas company will leave the property in a hazardous condition – thus shooting holes in the banks/sellers’ claims that turning on the gas can be hazardous.
Once again, I would strongly urge you as a home buyer to consult with your Buyer’s Agent about any utilities issues BEFORE you sign the purchase contract and bank addenda. And you should also discuss the potential ramifications and risks involved with NOT turning on the utilities or NOT performing appropriate inspections by qualified professionals.
