More and more consumers are asking about foreclosures and winterization.  But, what exactly does winterization mean and what additional steps might a buyer have to take in order to purchase a winterized home? 

What does “winterized” mean?

Technically it means that the home has been prepared for the winter season.  However, we are seeing foreclosed homes being winterized throughout the year.  When a bank or home owner gives notice to a prospective purchaser that the home has been winterized they are disclosing that water is not flowing through the pipes.  And, that most likely, the home does not have all utilities in service.  Many of these properties have the thermostat set at a very low temperature.  There are different levels of winterization.  Most banks require the highest level which includes draining the hot water tank and using a special type of antifreeze.  If a home will be vacant in the winter, it is extremely important that there has been some sort of winterization to help decrease the chance of burst pipes and water damage. 

What does this mean to a potential purchaser?

If a home you are interested in has been winterized, your agent needs to ask the Listing Agent who is responsible for a) hooking up utilities for inspections, b) paying for dewinterization, and c) paying for rewinterization.

Banks have started to leave the utilities in service, or the Listing Brokerage has left the utilities in service.  However, if the bank has turned the utilities off at the property, the buyer may have to pay to activate utility service on a home they do not own.  Some utility companies have a problem with this.  The prospective purchaser will have to work through this if they want a complete inspection on a winterized home. 

So, who pays for the dewinterization?  I have never had a bank pay for the property to be dewinterized.  The home inspector hired by the purchaser used to be able to do the dewinterization during the home inspection, but many banks were finding that not all home inspectors were qualified to complete this process.  What I have seen recently is the buyer is charged for the dewinterization, but the Listing Brokerage hires the plumber.  This means that the buyer can not shop around for the best price, but the Listing Brokerage is accepting more liability if the dewinterization goes wrong. 

After the inspections are completed the property should be rewinterized.  Many banks and Listing Brokerages will not require this if the inspection date is in close proximity to the settlement date.  I, however, strongly recommend that the property get rewinterized.  Water can cause catastophic damage in a limited amount of time.  It is well worth the cost of rewinterization to have some piece of mind.  I have seen banks pay for the rewinterization and I have also seen banks require the buyer to pay for the rewinterization.  

What’s the bottom line?

Cost is a big issue for most purchasers these days.  Your home inspection will run $200-$800 depending on the size of the house.  Most plumbers charge $75-200 to dewinterize a home and  $150-$300 to winterize.  On average my clients have paid $670 to complete four steps: 1.  Dewinterize property  2.  Home inspection  3.  Rewinterize property  4.  Dewinterize property after settlement.  Buyers need to be prepared for these additional costs. 

Remember to always consult a local Realtor about the standard procedures in your area.