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worries of buying a home

Posted by ReneeM1012 (My Page) on
Mon, Jul 28, 14 at 13:25

Ok, my husband and I looked at a house over the weekend. I thinks its the perfect deal, 5 bedrooms, 3 full bathrooms, 2,888 sq ft, newer deck, brand new water heater, roof is 10 yrs old. Apparently house was gutted and remodeled inside but isnt completely finished. Seller disclosed that previous owner heavily insulated the house, theres not drafts, windows are newer - double pane, previous owner was electrician and all wiring was put in over last 5 years. It's on 0.65 acres, asking price is 65k, seller is willing to do a rent to own at 495/mo for 36 mo then finance the rest. Is this a good deal? I think so, however my husband is being Mr. Negative. Saying "the "electrician" could have not done the wiring to code and the house will catch fire". It has been on market for almost 2 years and he says "its because its over priced and there's too much work to do" (its in Sidman, Pa). Basically, I am looking for some professional opinions that I can show my husband to help ease his mind. My mother sells real estate and I know a good bit about it myself. I know the factors that go into appraising a house and this house doesn't have a whole lot going against it other than the fact that the inside needs some work to make it livable (new carpet in upstairs, minor floor repairs downstairs, & paint) and some rooms need finished yet.

Follow-Up Postings:

RE: worries of buying a home

I don't know what houses go for in your area, but down here that is dirt cheap. Can't you hire a professional to check the electrical work?

RE: worries of buying a home

that was dirt cheap 20 years ago
where is this located?

RE: worries of buying a home

That deal locally would scare the stuff out of me---and I have helped build houses and had my own remodeling company. And we bought a foreclosure that had been damaged and had a couple of problems I considered small(since I knew how to fix them, but scared off everyone else.

Huge red flags:

Length of time on the market at that price.

The offer to rent to own.

What is heavily insulated? Look in the attic--heavily insulated means 16" or more of insulation.

Now, there are ways to determine if there are problems that are real and would add large repair costs.

Was a permit pulled for any of the work? If so, there should be inspection reports and approvals for the work done. That indicates at least minimum code compliance.

Can you hire an independent home inspector? One that has experience and the ability to inspect foundations and can determine any structural problems. All due respect to your mother, but inspectors hired by real estate companies often do not have the necessary experience and often write reports favoring their employers.

The lack of permits/inspections means no one has any idea of how the work was done and if proper materials were used.

If brand new windows were installed incorrectly, there can be huge gaps that essentially negate any wall insulation.

The house could be a huge deal---but it seems logical if it were such a deal, flippers would have snapped it up long before now. Foundation/water in the basement/big structural problems would scare off flippers/investors.

RE: worries of buying a home

That's ridiculously cheap.

Get a house inspection before a purchase, offer contingent upon inspection.

After the inspection, then you know the quality of the wiring, etc. and if everything meets code or not.

A turd can be polished, and a turd can look polished. You won't know until you have a qualified inspector there.

Two years on the market for that ridiculously cheap of a house is bizarre. Is it very rural? The ghetto? Farmland?

Was there a realtor who never advertised or "for sale by owner" and now they're using a "real" realtor? Was it under huge renovation until now with hardware and debris everywhere that would turn off buyers?

I'm guessing it's very rural if the owner is willing to seller finance. Also, some lenders don't want to touch that cheap of a mortgage- not worth it to them. That could be part of why the owner is offering seller financing. Also, with that cheap a house .... people wiling to live in that cheap of a house often don't qualify for standard mortgages. In my area it's easier to find mortgage companies willing to finance for $100K+ than <$50K. The condos in my area are around $30-40K and many buyers of those have to either pay cash or use alternative financing (personal loans, etc.) as mortgage lenders around my area don't want to spend time on a $30-40K loan. Seller financing isn't always a red flag.

But you need a real estate agent to do an appraisal on the place and you absolutely need a professional inspection before the purchase. You could have a great deal on your hands, and you also might not. For a large 5 bedroom house like that, I would pay $65K pretty easily.... after inspection. That's a big house for absurdly cheap. Unless it's in the hood, that's dirt cheap.

RE: worries of buying a home

I agree get a home inspection but instead of an overall inspector I would hire individual experts to do the inspection (an electrician, plumber, roofer, etc) for the main infrastructure. Wish I had done that with my house!

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