The long and short of real estate investing is buy low, sell high. Or conversely, whatever goes up must come down, or does it? In volatile realty markets there are...
When We Buy Houses Goes Wrong
When We Buy Houses | Buying a Legitimate Property
When you are buying a house the caveat is ” buyer beware”. If you are looking at your proverbial ” dream home” make sure to look at all the information on the CLUE reports and the natural hazards disclosures. Below is an article published in the New York Times about a couple who purchased a house thinking this was the property of their dreams, later to realize the many issues in the residential property.
The proliferation of new real estate sales and the shortening inventory in many areas like Southern California will have an impact on the litigation issues to the home sellers in regard to selling a property that was not what the buyer expected. Further even as you read this real estate attorneys are gearing up to go after sellers and or Realtor who even vaguely mislead a home buyer into a “real estate lemon”. If you need to get a rehab on your property make sure that is dove tails with the asking price of the home. Get a real appraisal before you buy and get a second opinion on a property inspection if you fell in the slightest any concern about the place.
Any home buyer knows that a dream home can become a nightmare. But most people don’t expect it to happen to them.
When the Hickses started their search in the suburbs a few years ago, they had been looking to leave the Upper West Side of Manhattan, where they had been living in a 1,000-square-foot rental apartment above a Japanese restaurant. It was large, but so dark that they called it “the Batcave.” They wanted a home with a big yard for their growing family; they have a 2-year-old son, Jackson. Mr. Hicks, who grew up in Freehold, N.J., works for a company that does web marketing; Ms. Hicks works in television commercial production.
They focused on towns along New Jersey Transit’s Midtown Direct train into Manhattan and on homes that were within walking distance of the train. They set their budget at $800,000. In a year and a half, they toured 146 houses, “and then we stopped counting,” Ms. Hicks said. They made offers, but found themselves continually outbid.
Ms. Hicks’s favorite feature of the house had been the hand-laid tile on the floor of the master bath, which gave the impression of a riverbed. But by the end of their first summer, the tiles were cracking. The plywood subfloor was inadequate and incomplete; the floor was sinking.
They had fallen in love with the house, and the broker’s account of how the previous owner had rescued it. “We got kind of fed this story about how this woman was a hero,” Mr. Hicks said.
The charming bridge over the stream had to be replaced; the wood was untreated, and began disintegrating within a year. By last June, nearly three years after moving into the house, the Hickses moved out and contractors moved in; the family realized that they needed to tackle all of the necessary repairs at once. They were told that the repairs would take six or seven months, but it is likelier to be 11. They have stripped the walls to the bare boards to rework the electrical and plumbing systems. They have torn out siding, removed the mold and rotted wood that was found within, and laid a massive beam to support the second floor atop columns that extend through the basement. read more at nytimes.com