Is The Point of Sale Inspection Promoting Home Ownership or Rental Income?
By Matthew P. Klein
(The Real Estate Corner)
Jeffrey and Simone are out to buy their first home. Prices are low, mortgage rates are low, and they've saved up some money for an adequate down payment of between 10% and 15% depending on their purchase price. They stop in Cleveland Heights and take a look at a bank owned colonial for $40,000. To their eyes, it needs work but at $40,000 with some sweat equity and a little time, they can put together the funds and muster it themselves to repair the property all the while living in it as they go. Then their Realtor advises them. The City of Cleveland Heights has a Point of Sale inspection. A city inspector has to look at the property and give them a list of what they need to fix. The City also requires 125% of their estimate for specific violations to be put into escrow. That is in addit...