10 Things to Consider Before Buying a Foreclosed Home

4. Check for plumbing problems. The most catastrophic problems in abandoned or foreclosed homes are often caused by broken plumbing pipes or leaks. “Sometimes when you dig beneath the surface of a leaky toilet bowl that’s been shoddily repaired you’ll find that you not only have to replace the lead bend, but also whole floors, floor joists, and drywall that’s rotted or contains mold,” says Matthew Barnett, a licensed home inspector and owner of Brooklyn, New York-based Accurate Building Inspectors. An ASHI member, Barnett says controlling a mold problem can cost anywhere from a couple of hundred dollars to $20,000-$30,000 or more to repair and replace whole floors and walls made of plaster or drywall.

5. Investigate mechanical, water-heating, and electrical systems. “In abandoned houses with forced-air systems, dirt and debris and even small animals accumulate in the duct work,” says Barnett, “and if humidity has been around boilers or furnaces for long periods of time, the heat exchangers can corrode and you’ll need to replace them altogether.” This can cost between $3,000-$5,000, he says, depending on the type of system you’ll need. “Some utilities won’t light the pilot light of gas systems if the filters are dirty for fire safety,” adds Andrea Johnson, a Portland, Oregon-based licensed real estate broker and founding member and partner of U.S. REO Partners. This means you’ll need to assume the cleaning expense to test whether they’re operable.

6. Look for signs of deferred maintenance. “When owners simply give up and stop taking care of their home, there will be lots of maintenance issues, like the need to clean the gutters, clear debris off the roof, cut back overgrown vegetation, and caulk/seal tile in showers and tubs,” says Gifford, who adds that in certain distressed areas it isn’t uncommon to find that appliances, condensing units, and ceiling fixtures have been removed altogether. According to Barnett, “cheap repairs, like using duct tape or plumber’s putty over a leaking pipe or unprofessional wiring of a fan” can also lead to deeper problems, like mold or fire hazards, which may require costly fixes down the line.