Home failed inspection.. miserably

[burbuja0512]

UGH.. SO as you all know, we're moving to Chicago because I start my new job on March 5. We couldn't have the entire family make it out there in time for my start date, so DH and I flew out a few weekends ago to go house hunting and after some negotiation, we put in an offer on a beautiful house in a large neighborhood.

Things started a little rough because in spite of a VERY dated kitchen and strange bath colors (fire engine red bath/toilet in master, bright blue in kids bath and pepto-bismo pink in another) the seller wanted top dollar and a price equal to comps in the area. We managed to haggle and only got a 5k concession for new paint and carpet and were willing to deal with the other issues because it's a great house right next door to a park and a block away from a pond and several other parks. I'll even share the link since we won't be living there! 639 Matthew Ln, Carol Stream, IL 60188 - Home For Sale and Real Estate Listing - realtor.comÂ

Anyhow.. all was moving forward with the closing scheduled at the end of March and then we got the inspection results. OMG!!!!! Yes, we knew there were cosmetic issues, but holy cow the place is falling apart!! Major mold issues, heater that's been leaking, with a filter that hasn't been changed in what looks like YEARS, AC totally broken, staining and leakage throughout, appliances totally broken, electrical problems too numerous to mention, foundation issues, and I could go on, but I'll spare you all the details.

So sad and a bit angry that we are now out $600 bucks for home inspection and no closer to finding a home. I have insisted that my agent forward the full inspection report to the seller and his agent so that he will be forced to modify his disclosure statement. I also wrote a long email that I have requested to be sent to the owner explaining in detail how much it would cost to make the home livable and have suggested that he is posing a major danger to his current renters. No, it doesn't get me my $600 back (and all the excitement that our family had) but it will hopefully force the guy to be more responsible. Or at the very least, he couldn't claim ignorance if something happens to his tenante. After all, he is renting this place and it's not safe to live in!! And on his disclosure paperwork, he claims that everything is just fine. UGH.. what a slimeball!!!

Thank goodness for home inspectors!! I'm so glad we didn't buy this money pit!!!!! Back to the drawing board!

[mrs.b]

That's terrible, and absolutely irresponsible. You know there is no way the seller was not aware of all those issues.

I'm sorry the sale did not go well. You will find the right house in the end, though. Have you considered renting for a little while to settle into the area, before buying? It might give you a better feel for the city to give yourself a good idea of the neighborhoods you might like. I know when we first relocated here, I would have bought in one township, but after renting a while, am so pleased we were forced to rent initially because that would have been a mistake.

[Getiton1]

Hi Burbuja,

Oh my! What a nightmare! I can only imagine how much this would stress you out so close to starting the new job!

I gotta say that inspections are SOO worth the money because unless you like expensive surprises and LOVE the house even it's it's like the mansion home in the movie "The Money Pit"…you would have been screwed. So instead of thinking it a loss of 600.00 think of it of a savings of hundreds of thousands of dollars (cost of house, cost of fixing the situations if you had not had the inspection and cost of paying interest on the house).

You know I totally agree with Mrs. B about trying out rental houses. Especially when you are in a big city. Yeah, moving really is stressful and a pain, so I understand any reluctance there. Plus rent can seem like throwing away money…but in your situation it seems like everything is happening quickly and all at once. I agree with Mrs. B that you will really get a better "feel" for which neighborhoods you like, sort of like and love. Also if you are renting YOU have a lot more time to decide which gives you a lot of leverage when making a deal. Since timing is a factor and even if you had a rush closing…you might not be able to move in till May even June right? So I think Mrs. B is giving good advice…check out rental homes and research the reviews of former tenants and get yourself a comfy home base. Remember to get terms that will work for you when you are ready to move (i.e. Month to Month, 60 days notice without a penalty for leaving in less than 1 year or whatever you want and the landlord can agreed on in writing and keep that copy handy). This would alleviate the stress of having to find a "perfect house" and possibly another 600.00 inspection if the next house has issues and you have to start yet again. Also, if you are working with a real estate agent you like (or relocation specialist), a good agent will try to steer you away from bad deals and towards the best ones. Anyway, renting buys you time and saves you massive stress of having to do everything in a hurry on your own. It slows the urgency clock down...and that would potentially buy you some time to find a gem of a home that you and the whole family can live in a happy healthy environment

Hey, I am so sorry this happened. I can tell you were working so hard on finding a nice home, in a nice neighborhood for your family. But I have confidence you will find the best home yet!!! Things have a funny way of working out

I am keeping my fingers crossed that you find an even BETTER home on your terms!

With Support,
Tara

[merolpn]

I am sorry to hear you lost out on what appears to be a really nice house.

I understand how you feel. I have had my Electrical Contractor's license for over ten years and have been in the trade over 25 years. I have seen every slimeball landlord, house flipper, renovator, general contractor.........etc in my state. I was looking at homes for a while. I had three homes inspected. All had problems. Some major ones like collapsed septic systems and mold....etc. Since I was getting a low enough price and I was renovating the house myself, I accepted these issues. The one major problem was that I was trying to by Short Sales and Foreclosures which are more difficult than paying top dollar to an owner occupant. Three banks could not close their side of the deal. I had all of my paperwork complete but the selling banks just could not get their act together. That was three "home" inspections, Threes "septic" inspections, Three lab fees for well water tests AND the kicker......another $600 for my loan application because my time ran out. I was SICK of paying. By the time I made the offer on my current house, I could write an airtight contract myself (and I did). I just flatly tell the seller...."If the home fails for HEALTH or ENVIRONMENTAL reasons, contaminated well water, failed septic system, MOLD or leaking oil lines.........YOU PAY the inspection fee, PERIOD!" I take pictures of mold and damage. I would never cheat anyone out of their money. I just want to recover my money inspecting their home or get the price low enough that the deal works for me.


Oh, also even though I am a licensed contractor I always pay for someone with "Home Inspector" on their letterhead because town/county/city building departments generally know these guys well. I know what you are thinking "Why do you care about that"? When the seller of a really bad house can't close the deal at the price I want, I become a public servant and "Donate" ALL of the horrible inspection reports right to the local building department inspectors. I've sent a few things to the local Health departments too when mold is present. I call the local building official advising them that I found a major health or structural problem, then email the inspection report to them. Now there is a phone call logged and email trace. I NEVER do this through any real estate agents. I don't trust people to pass along critical information. Agents may not want to pass along damaging info to towns because they are afraid someone will do it to them in retaliation on their listing.

Here is the Dupage County link: DuPage County IL Official Website - Building Permitting - Home

Don't ever be shy about it!! You may be saving someone from health problems.

Also, if you have the time, go to the town assessors office yourself before you look at a house and tell them you are purchasing a specific address. Just march right into the town clerk like you own the county and ask who has all of the building files. Willingly pay for whole files to be copied. You can find some really good information. Most towns will hand you the whole file (owners name, assessment, permits) Sometimes real estate agents accidentally (on purpose) put in a much higher "Assessed Value" on the MLS sheet. That is because most homes assess at 70-80% of fair market value. The higher that number is the more attractive a lower asking APPEARS. Trust me, it is very intimidating to sellers and selling agents if you walk into the showing holding all of their information and start asking questions before you look at "pretty" things. Agents always want to show the woman the kitchen and how pretty the tile is in the bath (That's why your listing did not have pictures of the bathroom) and show the man the garage and shed. I look at houses alone. I go in and act like I have to rip out every faucet, bathtub and toilet anyway, so I don't care what it looks like. Every kitchen I see, is "just acceptable" when they ask me how I feel about it.

I try to make offers on Sundays. I give the selling agent LESS than a day to have my answer. Usually I will try to make the offer around noon on a Sunday and tell them that this is a one time offer and I want a yes or no by 9 am the next day. If they ignore me, I know they weren't going to work on price. If they counter offer after my deadline, I give it two days before I respond. I generally know what property in my area is worth and I am not a lowballer. I don't go in at 60% of asking and demand an answer in 10 hours. I make the offer just on the edge of attractive. I can always beat them up a little later after my inspection.

Yes, I have learned almost every slimeball trick in the book.

I hope I gave you some good information to think about and maybe a different point of view.

Good luck on the next deal!

Paul

[LaterBloomer]

With what I've read about the housing market in the Chicago area, you should be able to find a nice house at a decent price. Keep looking. If it's at all possible, rent first. Yes, realtors can know lots about areas, but I've dealt with some who are pig ignorant on some surprising topics, so I'm less likely to credit what they know in other areas. When it comes down to it, you and your family know what best suits you.

While $600 isn't something to sneeze at, think of it as the best investment you've ever made. The returns on it outdid any other investment you've ever made, I'm sure.

[burbuja0512]

Thanks for all the info and ideas you guys! Yes I am stressed to the max!!! I love the idea of renting, but with 5 kids and 3 dogs, I am not sure it's quite so easy. If we're lucky enough to find someone who will rent to us, we certainly would lose a lot of money in deposits. I'm certain we are rough on any house! If it's my own, I don't mind because I know that re-paint and re-carpet are just something I budget for every few years, but would hate to think about how much I might have to pay just for living in a place for a year. I can (mostly) control the kids, but the dogs are another story, so it's tough.

Paul - thanks for the link to the DuPage county site.. the ideas were great and believe me, I will take your advice!!!


Right now, the current status is that in order to get my earnest money back, we have to list out our demands and take them to the buyer. I'm frustrated. I just want to run away screaming "this house is a LEMON and I DON'T WANT IT!!!!" But we're kind of being forced to play the game a bit. Our list of demands are a mile long, and the alternative would be a reduction by 100k. I doubt that they would agree to either, but I'm still worried - what if they say that they'll fix the place up? I don't trust it. This house has been so neglected that my gut feeling is that the items on the inspection report could be just the beginning. I would be afraid of other problems popping up down the road.

If I have to walk, I'll walk even if it means losing the earnest money, but OMG that would make this a very costly mistake. I really hope the seller decides that they'll hold off and wait for a buyer with lower standards than us.....

[NAP]

Hi burbuja0512,

These people seem to think you should be able to get your money back NOW without any further negotiations:
Can the seller keep the earnest money after ... - Zillow Real Estate Advice

I hope that is true for you! I know that you will find a much better place for your family!

[merolpn]

If I have to walk, I'll walk even if it means losing the earnest money, but OMG that would make this a very costly mistake. I really hope the seller decides that they'll hold off and wait for a buyer with lower standards than us.....

If you walk, the only money you should lose is your inspection fees.

Does your offer have a "Home inspection" period? At any time during this inspection period you should be free to walk. If you haven't dragged your feet and you acted in good faith, getting your money back should not be a problem. If you are not absolutely in love with the house, just walk. Tell your agent to get your check back. There will be other nice houses. You have no family memories there in that house and no emotional investment. It is just wood, nails, wire, pipes, windows and sheet rock. Nothing more.

[burbuja0512]

Thanks so much you guys.. I am freaking out.

I am really good at contract law as part of my job includes pretty in-depth contract negotiation often on very large deals, so I feel like I can read a contract and understand it pretty well. My contract seems to make it pretty clear that I can walk if I don't like the inspection so I don't understand why my agent is pushing forward. (perhaps just "playing the game" to make it easier on us when we walk?? I don't know!) I will need to re-read and then maybe just make things clear: I DON'T WANT THIS HOUSE.. I don't care if they fix it or drop the price by 100k. It terrifies me that a single home inspection uncovered sooooo much crap. More than anything, it's the sheer neglect. These guys didn't change the filter on their furnace in over 5 years!!! They were living with major electrical problems and broken appliances. What type of people live in these conditions? People who don't care about taking care of their house - that's who!

Oh and about the mold - it turns out that they found out about the mold back in 2000 and DIDN'T DO ANYTHING ABOUT IT!!!! OMG!!!! Mold is a health hazard!!!! How could you just find out about it and then let it go for 14 years.


*burbuja runs off to take a xanax*

[merolpn]

Nobody pushes ahead with your money unless you say so. You read the contract and you are still within your right to walk. Don't let some agent change your mind or prolong the problem. He or she may be a nice person, but a sale is all that is wanted. Send an email if you get fired up and don't want to talk. This is what I would say.

Dear Agent,

Thank you for showing me this home and submitting my offer. I have decided to withdraw my offer dated (whatever) due to significant health concerns and the expense required to bring this home up to acceptable living conditions. I expect to have my deposit check returned in person (or sent to me via USPS with tracking) within 48 hours.


Signed