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:

• 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

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.

Leachfield Septic

Mound System Septic

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*