Module 3: Specialty Inspections
Chapter 20: REO Inspections
REO inspections are used to verify if a property is in marketable condition prior to it being shown by the real estate agent or broker. The client’s main objective for REO properties is to prepare them for sale and get them off the market as soon as possible. This inspection is always an interior and exterior inspection. Cleanliness is of the utmost importance, and the property should be free of hazardous conditions. Multiple photos are required as well as a complete written report, typically 1 to 2 pages in length. There should be a lock box code provided to enter the home. If the inspector is unable to enter the home utilizing the lock box code provided, some clients may instruct to call the agent or broker listed on the for sale sign to confirm the code.
Be sure to refer to specific instructions and requirements from each client as to the necessary fields, required photos, etc. Below is a list of common things to look for when at an REO property:
Exterior Condition:
● Mailbox straight, secure and painted
● Front door clean and in good condition
● Front screen door is in good condition
● Exterior of home is in good condition
● All exterior lights are in good condition and working
● Lawn is mowed, driveway and walkways are edged and all clippings are raked and blown
∙ Lawn conditions should match that of the neighborhood and preferably be at the beginning or middle of the lawn growth cycle
● No exterior debris present
● For Sale sign present
● Lock box is present, in working condition, and has a key
● No cobwebs present
● Door entrance is clean and free of debris
Interior Condition:
● Windows and sills are clean inside and out
● All appliances are clean
● Flooring and carpets are clean
● Baseboards have been cleaned
● All light switch plates are clean
● Electrical cover plates are installed as needed
● All electrical wires capped
● Tubs, showers, and commodes are clean
● Interior light fixtures are clean and operational
● Note all damages on the inspection form
● Note if property has been winterized and if antifreeze is present
● Realtor contact information present inside