Considering buying a fixer-upper house, but my husband is worried because water has been left "on" .

Question

He is worried there might be sizable water damage or mold. Is this a reasonable concern? House also has a septic system. Should we have concerns about that, too? The house is listed WAY below market value, and has so many other great features. So even if we had to put work into it, it would be a steal. Had sketchy renters and as far as I know has only been vacant for a few weeks.

The house ia minimally 200K below other comp houses in area. It's so cheap b/c it's a short sale. I like the inspector idea.

Answer 1

By "on" do you mean that part of the house was flooded? Or just left running in the shower or a basin?

See first answer, pay for a professional inspection and then decide.

Even with some flooding, you might only be looking at opening up some walls and refinishing. As long as there is no structural damage, not a big deal.

Answer 2

Always pay for a home inspection.......

Something may be fishy here. Just because the water has been left on doesn't mean that is the only problem you should worry about. Mold is a major concern, roof leaks, foundation may not be stable, wiring could become a problem if water is an issue.

I just bought a bank owned house at such a low price I was afraid too, but I had a home inspection and the inspector said that this is the first house he had seen in awhile that was so stable. My inspector was a referral so I trusted him to not be on the banks side. Also after I bought the house I found out 18 people were living here and it was being used as a half way house for people coming from Mexico.

Lucky for me I was very fortunate that there were only two small holes to fix and paint the walls (kitchen was lime green if that tells you anything.

Answer 3

First before you even think about buying the house have it check out, completely. The last thing you need is to open up a wall and find out some really bad is wrong with the house. If the house is solid, and you're talking, new windows, doors, bathroom(s), kitchen, etc. then take out a pen and paper a figure out what the loan will cost over six years, (I'd use a fixed mortgage 15 years) that way you can see if you'd be money ahead by buy and fixing the house up and selling it verses renting. (current rent X 12 X 6 for $500 it's 36,000) If the dollars are right, then ask yourself this, what are the odds I'd have to leave before year 6? Anything less then 90% rent. OK the Dollars are right, and you're locked into a job for the next 6 years then make a low offer. At least $20K (or more) under what they're asking. They might take it. It easier to go up on an offer then go down. Hoped it helped. EDIT When you're doing the numbers, figure out what you could sell the house for today, (after you fix it up) not six years from now. After all you don't really know what the market will be six years from now, only what it is now.

Answer 4

It should be inspected before anyone will approve a loan for it in the first place. Termite and mold damage inspection are supposed to be part of the deal.

Who really wants to buy a "fixer upper" anything? That is hard enough to do with an automobile, let alone a house. Mold damage can be expensive and even cost you your health.

"Market Value", that is the key term right now in Real Estate. Most "markets" are artificially inflated because of all the corny loans that were handed out for the last seven years. Every day more and more of those people are not paying those loans back. Houses will be less expensive soon. Most of the SUCKERS wasted money buying houses already, there are few "NEW SUCKERS" to screw over.

Do yourself a favor and stay away from that busted, molded out RATHOLE and wait for the market to bottom out. Doesn't it make sense?

Two years ago based on the rate of increase, the median price of a San Diego home was going to be over $1,000,000 in the next six years. WHAT A JOKE! I have already saved myself $34,0000 (after rent expenses) by waiting to see what will happen in the housing market. There is no way that a 2 bedroom house with one bathroom is worth $400,000. It doesn't take a real estate genius to figure that one out.

That having been said, some markets are normalized. You did not say what city you live in. I am just working off of the assumption that most markets are inflated.

Houses just have too many pitfalls to take a chance on one with problems already to me.

Answer 5

Some people are skeptics, it sound as if your husband is one of them. Do you know someone in the construction business? If so see if he will go check the house out for you top to bottom. If not you will have to get an inspector to check it out top to bottom.

How do you plan to correct the damage if there is any? Is your husband a handy person around the house? Can he do the repairs himself? Does he even want to do them?

See if the purchase price and all the repairs are still below what the fair market value will be. If the fair market value is still below what the houses are going for in that neighborhood, then it probably is a very good bargain.

Do you plan to stay in it as your home, or fix it up for a profit?

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 6

It's essential that you know exactly what you're getting into. A good home inspector should be able to do a thorough home inspection for only a few hundred dollars. Once you know what all the problems are, you can then get estimates for the cost to correct them. Worst case scenario: it's a lot worse than you thought, and you can walk away with only a few hundred dollars out-of-pocket.

If the house is priced $30M below market but it will cost you $20M to cure the problems, then buying the house will really only save you $10M (not including time and trouble) - but at least you'll be able to make a reasonable assessment as to whether it's worth it.

Whatever you do, don't assume that the house will be worth it no matter what. What if it's $120M below market, but it'll cost you $200M to fix? Get the real figures and make a decision objectively.

Answer 7

You say that the water is on but is it leaking? Can you see any visible damage to the house caused by water? You should be able to get a house inspector, making sure they are well respected by checking with a few Realtors, that may help you for a small fee. Make sure you tell him of your concerns so these things can be thoroughly check out. If you have to totally gut the walls (because of mold) and replace the septic can you still make money with everything else that needs to be done? Add about 20% to your estimate of the costs and see how it works out, if you can still come out ahead than it is a no brainer and go for it, but if you come out on the short end it may be better to pass or present an offer that allows for a profit based on worst case. Good luck hope it works out for you.

Answer 8

Do not contact online predators. Spammers, like Marty from Premier Loan Sharks, are wanting to prey upon your situation, not help. You can suffer worse then financial lose, you could be giving your credit information to an identity thief and suffer for years to come. It is especially hard to deal with if you deal with anothercountry, there is no way to know where someone online is really located and if you have any legal rights if they steal from you.

Tha water is a serious issue, it will require the carpeting and sheetrock to be replaced. This should cost you less then you are saving though, I would run the numbers.

Don't buy it if you can't afford to repair it. You can't legally rent it out and it is not safe for you to live there.

Answer 9

Please Please have the house inspected but a really really good inspector. It might be worth getting 2 inspections.
If the water was left on as far as water company then thats ok..
If it was turned on and left then I would go though and feel for wet floors, cabinets. I would even pull up the flooring to check the sub floor.

They may be seeling it low casue it might need some major work and not just cosmetic.
Just becareful and dont just jump on to it....
GOOD LUCK

Answer 10

I agree with goz if there are no sizeable problems sounds like a nice way to spend the summer-making this your dream house. Most molds are fixable.