Wednesday we had to pull out of the property sale. They wouldn't agree to the amended price after all the findings, (more in our previous post, and here: http://just-call-me-frank.blogspot.com/2012/10/it-all-comes-tumbling-down.html)
Today, of course, we find the property is still on the market, despite what our agent was told, AND with a price decrease (of $5000), which means no other sale is pending. Meaning we spent $450 in inspections and we won't see that money again...and it's likely that the property will now sit on the market through the winter, given it can't be lived in in it's current condition, and that is a requirement for a buyer, as stated in the previous post here on this blog...
We're kind of back at square one...though waiting to hear on another property in the area that is going through counter-offers right now. One we looked at the same day we found the one we fell in love with.
So, we wait.
Forty acres we may not get, twenty acres we would settle for...and right now love like it's forty.
Monday, October 29, 2012
Wednesday, October 17, 2012
The Inspections...
When we signed the paperwork for the house two weeks ago we were required to sign an agreement that we will live in the house for the first year. As a Freddy Mac foreclosure this measure is to prevent investors from scooping up all the foreclosed properties and to make real homes available to real people. So regardless of the condition of the house, we are required to live there...
The inspections went worse than we thought it would.
Here's a run-down of the list of things that the house/property needs:
Plumbing and Well
We already figured we'd need a new well (a cost of $8,000-$10,000), however we had hoped that it would be required right away. The inspector found that the water lines between the well and house were broken, so there is no way water can reach the house. In addition the inspector found that the waterlines were undersized to properly supply water to the bathrooms and kitchen. Also the toilet in main floor bathroom is not properly vented, as well as the kitchen sink. In addition the water heater is at the end of it's life, has corrosion issues on the top and is not equipped with a relief valve with a proper size discharge line. Which is a safety hazard. The cost of the installation of new plumbing and a water heater is near, or above, $5,000.
Roof
Roof is near end of life. South facing roof is missing numerous shingles. Shingles are generally worn and felts are showing through in numerous locations. Roof replacement is recommended.
Gutters and downspouts/downspout extensions insufficient.
- Attic/Insulation - Insulation is insufficient at only 4" of R-11 product (minimum level for the region is R-44). Additional attic insulation, insulation air chutes and soffit ventilation is suggested.
Exterior plus Foundation and Structure
Foundation walls on addition are bowed in and show signs of movement after construction. These walls should be reinforced.
Stucco has been cut back to allow installation of new windows and doors but was not protected from water penetration behind stucco in these locations. Improper head flashing noted above new windows. Given the current condition of stucco and sheathing siding replacement is recommended.
Some floor joists have twisted and do not provide full bearing capacity.
Heating/Air Conditioning
Supply ducts are installed in the wrong place walls and no return air ducts are installed. Only one heat supply and no returns are located on upper floor. Proper return air duct work is recommended. Heater is near end of life.
Electrical
The electrical panels have not been stamped by the State Electrical Inspector.
Circuit and wire sizing correct so far as visible, Grounding system is present. Signs of amateur electrical work noted. Wires are not properly secured to framing. Breaker for clothes dryer is 40 amp and wiring is no. 10 AWG.
This wire is rated for 30 amp breaker. Numerous open junction boxes noted.
Environmental Concerns
Possible environmental hazards noted on property.
Oil odor noted in well pit. Solvent stored in metal pit in pole barn.
- Vermiculite Insulation - Vermiculite insulation noted in attic. The US EPA recommend vermiculite insulation be treated as an asbestos containing material.
- Mold - The inspector observed mold growing on building materials inside the home. The presence of mold in the home indicates some form of moisture problem. Mold noted under kitchen sink indicates prior leakage.
Septic Inspection
The septic system was a separate inspection. We figured the septic would fail inspection, one of the problems of note is the discovery of roots of the willow tree in the front yard, that we love so dearly, had destroyed one of the two tanks.
We were hoping for a traditional leach system, which costs about $4000-$5000, but after soil test of the area it was determined that it requires a mound system, which is a $10,000 system. So that was NOT good news for our pocketbook.
Water Inspection
We waived the water inspection because after talking to the person who was scheduled to go do the testing, and explaining the inspection findings, she said she'd rather not have us waste our money because she already knows it will fail the water tests. (saved us money!)
So, we submitted a purchase agreement amendment with a request that the seller (bank) decrease the price further, it was submitted on Tuesday, so now...we wait...again...
Update: October 18, 2012 3:45pm
The amended agreement was rejected outright today, with no counter offer; they want to proceed at the original price. Having a cap on how much we have to spend on the property overall (which includes the renovation/repairs) we have submitted our final offer. It's final. Meaning if they reject it we can no longer agree to purchase this property for the price that was initially agreed upon before we knew everything that was wrong with it. To say we are taking this well...is an overstatement. *fingers crossed*
The inspections went worse than we thought it would.
Here's a run-down of the list of things that the house/property needs:
- New siding
- New roof
- New electrical
- New plumbing, including hot water heater
- New heating, including furnace
- New insulation
- Foundation wall reinforcement
- Improved floor joist support
- New well
- New septic system
In more detail:
Plumbing and Well
We already figured we'd need a new well (a cost of $8,000-$10,000), however we had hoped that it would be required right away. The inspector found that the water lines between the well and house were broken, so there is no way water can reach the house. In addition the inspector found that the waterlines were undersized to properly supply water to the bathrooms and kitchen. Also the toilet in main floor bathroom is not properly vented, as well as the kitchen sink. In addition the water heater is at the end of it's life, has corrosion issues on the top and is not equipped with a relief valve with a proper size discharge line. Which is a safety hazard. The cost of the installation of new plumbing and a water heater is near, or above, $5,000.
Roof
Gutters and downspouts/downspout extensions insufficient.
- Attic/Insulation - Insulation is insufficient at only 4" of R-11 product (minimum level for the region is R-44). Additional attic insulation, insulation air chutes and soffit ventilation is suggested.
Exterior plus Foundation and Structure
Foundation walls on addition are bowed in and show signs of movement after construction. These walls should be reinforced.
Stucco has been cut back to allow installation of new windows and doors but was not protected from water penetration behind stucco in these locations. Improper head flashing noted above new windows. Given the current condition of stucco and sheathing siding replacement is recommended.
Some floor joists have twisted and do not provide full bearing capacity.
Heating/Air Conditioning
Supply ducts are installed in the wrong place walls and no return air ducts are installed. Only one heat supply and no returns are located on upper floor. Proper return air duct work is recommended. Heater is near end of life.
Electrical
Circuit and wire sizing correct so far as visible, Grounding system is present. Signs of amateur electrical work noted. Wires are not properly secured to framing. Breaker for clothes dryer is 40 amp and wiring is no. 10 AWG.
This wire is rated for 30 amp breaker. Numerous open junction boxes noted.
Environmental Concerns
Possible environmental hazards noted on property.
Oil odor noted in well pit. Solvent stored in metal pit in pole barn.
- Vermiculite Insulation - Vermiculite insulation noted in attic. The US EPA recommend vermiculite insulation be treated as an asbestos containing material.
- Mold - The inspector observed mold growing on building materials inside the home. The presence of mold in the home indicates some form of moisture problem. Mold noted under kitchen sink indicates prior leakage.
Septic Inspection
The septic system was a separate inspection. We figured the septic would fail inspection, one of the problems of note is the discovery of roots of the willow tree in the front yard, that we love so dearly, had destroyed one of the two tanks.
We were hoping for a traditional leach system, which costs about $4000-$5000, but after soil test of the area it was determined that it requires a mound system, which is a $10,000 system. So that was NOT good news for our pocketbook.
 |
| Leachfield Septic |
 |
| Mound System Septic |
We waived the water inspection because after talking to the person who was scheduled to go do the testing, and explaining the inspection findings, she said she'd rather not have us waste our money because she already knows it will fail the water tests. (saved us money!)
So, we submitted a purchase agreement amendment with a request that the seller (bank) decrease the price further, it was submitted on Tuesday, so now...we wait...again...
Update: October 18, 2012 3:45pm
The amended agreement was rejected outright today, with no counter offer; they want to proceed at the original price. Having a cap on how much we have to spend on the property overall (which includes the renovation/repairs) we have submitted our final offer. It's final. Meaning if they reject it we can no longer agree to purchase this property for the price that was initially agreed upon before we knew everything that was wrong with it. To say we are taking this well...is an overstatement. *fingers crossed*
Wednesday, October 10, 2012
Step One: Inspections
The house closes on the 22nd and between now and then we have inspections to schedule. So far most of them look like they will be happening this Friday (October 12th)
The well inspection: Living in the country means no city water connections, instead the water comes from a private well dug into the ground of the property, which we are entirely responsible for. We plan on replacing it with a new well in the future, but if it passes the water test we`ll keep it for awhile. That`ll save us around $8,000-$10,000...for now.
The seller had to put a new pump in the well, because the agent couldn't get the well running, which was a requirement in our purchase agreement, and for the house inspection. The company that put the well in said that the output/flow rate seems good - even though they could not get the water in the house running, only a spigot on the outside. So instead of spending money on as inspection, we'll hopefully be able to get the report from them. That'll save about $125-$175
The water test: We are getting the well water tested for, at the top of the list, excessive nitrates, coliform, E.Coli, in addition to other things. If it passes that it will be tested for GPO and DRO (Petroleum Hydrocarbons in Petrol and Diesel) due to the vehicle dismantling business that the previous owner had stone throw from the well. $110 basic test/$145 for the GPO & DRO
Some of the things they inspect for include: operation status and whether or not the system is a to the public/environmental health; condition of the septic tank, including age of the tank and the thickness of grease/scum layer; condition of the soil absorption system, health of the leachfield, including any signs of hydraulic failure. $175
The well inspection: Living in the country means no city water connections, instead the water comes from a private well dug into the ground of the property, which we are entirely responsible for. We plan on replacing it with a new well in the future, but if it passes the water test we`ll keep it for awhile. That`ll save us around $8,000-$10,000...for now.
The seller had to put a new pump in the well, because the agent couldn't get the well running, which was a requirement in our purchase agreement, and for the house inspection. The company that put the well in said that the output/flow rate seems good - even though they could not get the water in the house running, only a spigot on the outside. So instead of spending money on as inspection, we'll hopefully be able to get the report from them. That'll save about $125-$175
The water test: We are getting the well water tested for, at the top of the list, excessive nitrates, coliform, E.Coli, in addition to other things. If it passes that it will be tested for GPO and DRO (Petroleum Hydrocarbons in Petrol and Diesel) due to the vehicle dismantling business that the previous owner had stone throw from the well. $110 basic test/$145 for the GPO & DRO
- National Primary Drinking Water Regulations - Drinking Water Contaminates: http://water.epa.gov/drink/contaminants/index.cfm
Some of the things they inspect for include: operation status and whether or not the system is a to the public/environmental health; condition of the septic tank, including age of the tank and the thickness of grease/scum layer; condition of the soil absorption system, health of the leachfield, including any signs of hydraulic failure. $175
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| Image Source: https://www.thenaturalhome.com/septic.html |
The house inspection: The house inspection is probably the most straightforward, as most people get them. $275. They will inspect:
Ridge peak sagging.
Roof sagging between the rafters and trusses.
Signs of deteriorated asphalt shingles, likes curling, warping, broken edges, rounded corners, etc.
Loose flashing near chimney, roof-to-wall connection or etc.
Wooden roof deck rotting under the last row of shingles.
Visible roof vents.
Chimney
Cracks or breaks in masonry cap.
Flaking or missing bricks and missing mortar.
Leaks.
Soffits and Facia
Loose or missing sections
Any visible rot or paint problems.
Gutters and Downspouts
Proper gutters slopes and downspouts.
Rust or peeling paint.
Leaks or loose/missing/sagging sections.
Downspouts extended away from the foundations.
Exterior Wall Coverings - the house has a crappy stucco job over old wooden shingles. The whole thing needs to be resided.
Missing mortar.
Bricks flaking or cracking.
Lose, missing or rotten siding/deteriorated paint.
Exterior walls bowed, bulged or leaning?
Windows and Doors - they all need to be replaced
Problems with paint/caulking, and rotted wood.
Gaps around doors and window framing.
Porches and Decks
Cracking, broken or flaking masonry.
Paint problems, rotted wood, and contact with ground.
Settlement or separation from the house.
Inspect the underside if possible.
Foundations
Cracks, flaking or damaged masonry.
Water markings and efflorescence (whitish, chalky substance).
Bowing, bulging or other irregularities.
Soft mortar issues.
Lot
Grade slope from the house.
Areas of settling next to/near the foundation.
Grade compared to neighboring properties.
Basement - there are a couple areas of concern where the basement is partially open to the elements.
Evidence of water penetration such as stains, mildew/odors, efflorescence.
Floors
Deteriorated of floor coverings or cracked flooring.
Water staining or other damage.
Evidence of sloping or sagging.
Walls - all being ripped out.
Check that the windows and doors work.
Walls appear straight vertically and horizontally.
Cracked or loose plaster.
Stains, physical damage or previous repair evidence.
Drywall seams or nails showing.
Ceilings - all being ripped down
Cracks in the plaster or loose, sagging plaster.
Stains, mechanical damage or evidence of previous repair.
Seams or nails showing.
Bathroom and Kitchens - being completely gutted and remodelled.
Fixtures are secure.
Cracks in the fixtures?
Condition of the tiles and caulking in the tub/shower area.
Faucets working or leaking. Sufficient water pressure.
Staining and rot under the counter-tops
Operation of the cabinet doors and drawers.
Electro-Mechanical Considerations
Type, style and age and operation status of heating & cooling systems.
Water supply piping and drains inspection for visible rust and corrosion.
Size, age and operation status of electrical service.
Grounded outlets.
Visible wiring in good condition.
Noticeable upgrades.
- To get the furnace running we need to pre-rent a large propane tank, as the house is heated with gas.
Looking over the list it seems obvious that the inspection won't uncover much we don't already know, the key things are in the Electro-Mechanical considerations in bold blue. Those are items that will mean we try to get them to agree on a reduced price from the one we agreed on, if they don't work.
Things not covered during a home inspection:
Asbestos - there's not much for insulation in the house, and the floor coverings are fairly new, so the asbestos danger is low.
Radon Gas - n/a
Lead Paint - we signed a waiver, and it's unlikely to be in the walls because they have been partially redone.
Toxic Mold - there IS mold in the bathroom, on over half the walls, but we plan on gutting all the walls in the house, so it's not a major issue.
Pest Control - there are probably mice. It's been empty for a couple years. But with very little insulation there isn't a lot of material to burrow into.
*Items in red are things we already know have issues.
Roof - needs to be re-shingled entirelyRidge peak sagging.
Roof sagging between the rafters and trusses.
Signs of deteriorated asphalt shingles, likes curling, warping, broken edges, rounded corners, etc.
Loose flashing near chimney, roof-to-wall connection or etc.
Wooden roof deck rotting under the last row of shingles.
Visible roof vents.
Chimney
Cracks or breaks in masonry cap.
Flaking or missing bricks and missing mortar.
Leaks.
Soffits and Facia
Loose or missing sections
Any visible rot or paint problems.
Gutters and Downspouts
Proper gutters slopes and downspouts.
Rust or peeling paint.
Leaks or loose/missing/sagging sections.
Downspouts extended away from the foundations.
Exterior Wall Coverings - the house has a crappy stucco job over old wooden shingles. The whole thing needs to be resided.
Missing mortar.
Bricks flaking or cracking.
Lose, missing or rotten siding/deteriorated paint.
Exterior walls bowed, bulged or leaning?
Windows and Doors - they all need to be replaced
Problems with paint/caulking, and rotted wood.
Gaps around doors and window framing.
Porches and Decks
Cracking, broken or flaking masonry.
Paint problems, rotted wood, and contact with ground.
Settlement or separation from the house.
Inspect the underside if possible.
Foundations
Cracks, flaking or damaged masonry.
Water markings and efflorescence (whitish, chalky substance).
Bowing, bulging or other irregularities.
Soft mortar issues.
Lot
Grade slope from the house.
Areas of settling next to/near the foundation.
Grade compared to neighboring properties.
Basement - there are a couple areas of concern where the basement is partially open to the elements.
Evidence of water penetration such as stains, mildew/odors, efflorescence.
Floors
Deteriorated of floor coverings or cracked flooring.
Water staining or other damage.
Evidence of sloping or sagging.
Walls - all being ripped out.
Check that the windows and doors work.
Walls appear straight vertically and horizontally.
Cracked or loose plaster.
Stains, physical damage or previous repair evidence.
Drywall seams or nails showing.
Ceilings - all being ripped down
Cracks in the plaster or loose, sagging plaster.
Stains, mechanical damage or evidence of previous repair.
Seams or nails showing.
Bathroom and Kitchens - being completely gutted and remodelled.
 |
| The bathroom with mouldy corners. |
Cracks in the fixtures?
Condition of the tiles and caulking in the tub/shower area.
Faucets working or leaking. Sufficient water pressure.
Staining and rot under the counter-tops
Operation of the cabinet doors and drawers.
Electro-Mechanical Considerations
Type, style and age and operation status of heating & cooling systems.
Water supply piping and drains inspection for visible rust and corrosion.
Size, age and operation status of electrical service.
Grounded outlets.
Visible wiring in good condition.
Noticeable upgrades.
- To get the furnace running we need to pre-rent a large propane tank, as the house is heated with gas.
Looking over the list it seems obvious that the inspection won't uncover much we don't already know, the key things are in the Electro-Mechanical considerations in bold blue. Those are items that will mean we try to get them to agree on a reduced price from the one we agreed on, if they don't work.
Things not covered during a home inspection:
Asbestos - there's not much for insulation in the house, and the floor coverings are fairly new, so the asbestos danger is low.
Radon Gas - n/a
Lead Paint - we signed a waiver, and it's unlikely to be in the walls because they have been partially redone.
Toxic Mold - there IS mold in the bathroom, on over half the walls, but we plan on gutting all the walls in the house, so it's not a major issue.
Pest Control - there are probably mice. It's been empty for a couple years. But with very little insulation there isn't a lot of material to burrow into.
This is going to be a big project. A big wonderful time consuming back breaking, tear and blood soaked project.
We've been going over design ideas, paint colours, tub and shower designs, appliance options, layout ideas, furniture wishes, etc. with James...and can already tell it's going to be....SO.FUN. (heavy on the sarcasm)
Next week will be Step Two: Haggle on the price, make the big payment and move!
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