Seven most commonly made mistakes investors make when buying property in the USA – Pt2
I’ll keep these short. number 2 on the ‘investor mistakes’ list
2. Water bills
It is common in the USA that a house can be repossessed by the state if the water bill is not paid regardless of who is living in the property. The landlord is responsible and can lose their investment if this happens.
When buying property, part of your title searches done should include any unpaid water charges. Make sure this is done and the seller pays them before closing or agrees a credit for the charges owed.
Many investors think that water charges are less significant and assume that if there are any they will be just a few dollars. Don’t assume this is the case. Water charges can be high if left unpaid as late penalties will also apply. Also, it is possible that a vacant property might have a leak, and someone will have to pay for this.
Make sure your title representative gets a water statement showing the current balance.