Scared Of Inspection Findings

[Gatorkev]

Hello Everyone,

I found this forum recently and I find it very informative.

I have put a bid on a house in the Ridgewood subdivision and had it inspected this weekend. It was built in 1929 and was recently "flipped" by an investor.

The inspection seemed to show that everything was wrong in the house. It had electrical issues, including knob and tube wiring that the inspector said needed to be replaced, and possible plumbing and sewer line problems.

My question is do most of the inspections on older homes look like this, or is THIS JUST A BAD HOUSE??

Thank you for any help that can be provided.

[musicman]

Hello Everyone,

I found this forum recently and I find it very informative.

I have put a bid on a house in the Ridgewood subdivision and had it inspected this weekend. It was built in 1929 and was recently "flipped" by an investor.

The inspection seemed to show that everything was wrong in the house. It had electrical issues, including knob and tube wiring that the inspector said needed to be replaced, and possible plumbing and sewer line problems.

My question is do most of the inspections on older homes look like this, or is THIS JUST A BAD HOUSE??

many old homes are in the same shape. if it was recently flipped, then most of the work was probably more on the cosmetic side vs. upgrading the services. as long as the house itself is solid, many of the services can be upgraded but will cost you. i will say that if you decide not to upgrade, talk to your insurance company to see whether they would insure the house. i know i had to upgrade the electrical in order for someone to insure it. the knob and tube in itself isn't bad, but most likely the number of circuits in the house is small which leads to a large load on each circuit which can be a hazard or just makes your daily life a little more challenging. using a hair dryer or vacuum might cause the circuits to blow. i know mine only had 2 circuit breakers for the entire house.

[cwrm4]

"Bad house" is relative to the price you expect to pay for it. If you think you are buying the house for a price that will allow you to correct everything, and realize most of the upside of that work in a sale, then do it. Otherwise, you're going to be in the hole. The costs can add up fast...a complete rewire of a bungalow is going to cost about $8000 (by a reputable electrician).

IMHO, I wouldn't buy a 1929 house from a "flipper". Unless you are looking for a resto project, you really need to buy one from somebody who has "loved" - and lived in - the house.

My house, built in 1920, had almost no problems on the inspection report. While I've "upgraded" a few items, I've spent less than $300 on correcting "problems" in the two years since I bought it.

[TheNiche]

Hello Everyone,

I found this forum recently and I find it very informative.

I have put a bid on a house in the Ridgewood subdivision and had it inspected this weekend. It was built in 1929 and was recently "flipped" by an investor.

The inspection seemed to show that everything was wrong in the house. It had electrical issues, including knob and tube wiring that the inspector said needed to be replaced, and possible plumbing and sewer line problems.

My question is do most of the inspections on older homes look like this, or is THIS JUST A BAD HOUSE??

Thank you for any help that can be provided.

K&T may not be a problem if you can find an insurer that doesn't mind. Determine how many amps it can handle and what your maximum load would likely be just to live there. It is something that will need to be addressed, but not necessarily right away. And if you're handy, you can save a whole lot of money by rewiring the house yourself and just using an electrician to install the new breaker boxes, etc.

You will want to get the plumbing problems identified and priced out quickly. Sometimes they're very easy fixes that you can do yourself, and other times they can be serious. If you've got sewage problems, that could be serious. Just find out how much it'll cost to take care of the problem and either have the seller do it for you or discount the price so that you can get someone out there as soon as possible. Plumbing is one of those things that you usually can't put off. If you've got a leak, it can damage the structure pretty quickly.

If the bones of the house are solid, though, it probably isn't a "bad house". Just figure out what the cost to cure is, let the seller know, and make sure that the house is priced reasonably based upon any work you've got to put into it. That's the bottom line.

[jm1fd]

I would probably walk unless the price is really, really good. Here's why:

Plumbing and electrical are basic issues that should've been addressed first thing by the flipper. The fact that they haven't strongly suggests that the flipper has cut corners everywhere he/she can in the interests of profit. Also, what else is wrong with the house that you can't see? Wood decay? Termites? Improper framing?

[TheNiche]

I would probably walk unless the price is really, really good. Here's why:

Plumbing and electrical are basic issues that should've been addressed first thing by the flipper. The fact that they haven't strongly suggests that the flipper has cut corners everywhere he/she can in the interests of profit. Also, what else is wrong with the house that you can't see? Wood decay? Termites? Improper framing?

That much is an astute observation, actually. Gator might bring this up as a point of argument to try and score some concessions, at least to the extent that the home inspector couldn't see various potential problems.

[AJXterra]

I would probably walk unless the price is really, really good. Here's why:

Plumbing and electrical are basic issues that should've been addressed first thing by the flipper. The fact that they haven't strongly suggests that the flipper has cut corners everywhere he/she can in the interests of profit. Also, what else is wrong with the house that you can't see? Wood decay? Termites? Improper framing?

I just bought a heights 1930's house that had been with the same owners since it was built. We knew we were going to need to replace the electrical (K/T isn't going to work for the new techno savvy generations - i.e. your flat panel tv and computer.) We ended up having quite a sewage problem as most houses that age are having now if they weren't ever replaced. We aren't in the house to flip it so we of course had to fix the problems. Just to give you a ball-park, those two combined were in the 12-15k range. Not to mention the multitude of other smaller issues we've found with just living in an old home.

You need to take into consideration the big 5 expenses. Foundation (Pier & Beam won't be as $$$), Electrical (BIG $$$), Plumbing (BIG $$$), Roof (BIGGER $$$), and AC/Heating ($$$). If none of these were replaced by the flipper...or ever...you're going to be paying big bucks for this house after closing.

That being said, no inspection on any house that old is ever going to end well...I just wouldn't pay over $150 psf if those major things aren't replaced.

Edited April 2, 2007 by AJXterra

[Gatorkev]

Thank you all very much for your input and advice. It got worse today, I found out that the house has dry wood termites and needs to be treated. I am very worried about what I can't see and where the seller may have cut corners.

The price is okay but not great. I will most likely walk from this as it just has too many problems to fix. I am also a 1st time homebuyer and do not want to buy a "money pit". I imagine concession on the house for repairs will be a deal breaker as he is trying to turn a big profit.

Thanks again for the insight, I will keep you posted.

[musicman]

I am also a 1st time homebuyer and do not want to buy a "money pit". I imagine concession on the house for repairs will be a deal breaker as he is trying to turn a big profit.

Thanks again for the insight, I will keep you posted.

good luck. money pit is a good description.

Edited April 2, 2007 by musicman

[TheNiche]

Thank you all very much for your input and advice. It got worse today, I found out that the house has dry wood termites and needs to be treated. I am very worried about what I can't see and where the seller may have cut corners.

The flipper should've treated for any active colonies right off the bat. Walk.

[gnu]

The flipper should've treated for any active colonies right off the bat. Walk.

i think you have to tent for drywood termites.

probably an expense the flipper did not want to incur.

[nmainguy]

Thank you all very much for your input and advice. It got worse today, I found out that the house has dry wood termites and needs to be treated. I am very worried about what I can't see and where the seller may have cut corners.

The price is okay but not great. I will most likely walk from this as it just has too many problems to fix. I am also a 1st time homebuyer and do not want to buy a "money pit". I imagine concession on the house for repairs will be a deal breaker as he is trying to turn a big profit.

Thanks again for the insight, I will keep you posted.

If you are not comfortable then I suggest you walk away. That isn't the only house for sale. We are landlords and have found older homes are much better built and attractive to the kind of renters we seek out: grad students; young professionals; etc... But we also recognize that most "flippers" do the minimum to attract the guliable.

In any event, we have always replaced knob and tube wiring and antiquated plumbing as well as taking care of any structural and cosmetic issues that come with an older house. It's an investment to us and has paid off in the long run.

If you are buying a house to be a home or to be for rental income, you may want to take the longer view: invest a sum upfront and reap the rewards later. Employ a respected inspector who may tell you things you don't want to hear but need to hear. It takes patience but the payoff is great!

[jm1fd]

I will most likely walk from this as it just has too many problems to fix.

From everything you've said, walking sounds prudent.

[cottonmather0]

Sounds like some astute flippers looking for a sucker... but I bet they put in granite countertops and can lights!

[cottonmather0]

I have put a bid on a house in the Ridgewood subdivision and had it inspected this weekend.

I also like your use of the word, "bid." I trade electricity for a living and was in a perpetual state of confusion with my realtor when we bought our house a few years ago because in my world, buyers bid and sellers offer.

"Do you want to put in an offer?"

"No, I'm buying the house."

"But you have to put in an offer!"

"You mean a bid?"

"Huh?"

"The price I want to pay."

"You mean an offer."

"No, a bid."

"Huh?"

[Gatorkev]

Sounds like some astute flippers looking for a sucker... but I bet they put in granite countertops and can lights!

You nailed it. Granite counters, stainless steel appliances.

Like perfume on a pig.

Thank you all for you advice. Hopefully we can find something else in the Heights.

[sunsets]

You will. Lots of turnover in the area, and there are always some nicely, and correctly, restored houses available. The trick is to find them fast - the good ones get snapped up pretty quickly. We snagged our beautifully remodeled bungalow on a tip from our landlord - put in our offer (or bid, I guess) before it officially went on the market.

You did well to walk away from this one, I think.

[Tiko]

From what I've heard of a lot of the new construction, many of the new home builders are cutting corners and their homes will be facing issues down the road. There are some very solid older homes that just need some upgrading...good luck and kudos for being willing to take on a project.