Is this a good deal? (cul-de-sac, foreclosed, appliances) - City-Data Forum

mopar · 07-05-2007, 08:10 AM

I recently stumbled upon a foreclosed home that is approx. 4568 sq. ft. It is a five bedroom, 3/1 bath, 3-car garage on a cul-de-sac. The backyard is small compared to what I would like. In my current home, I pay no mud tax. I would be paying mud taxes at the forclosed home. The home is need of repair. The widow sills have been removed. There is damaged sheet rock in the garage. Looks as if someone ran into the wall in the garage. There is some water spots on the ceiling in a few of the rooms. There was a crack in the wall in one of the bedrooms. When we looked outside, the crack seems to not have spread down the side of the house. This still could be possible foundation problems. The carpet, doors, appliances and cabinets either need to be touched up or replaced. The prior owners did not take pride in this beautiful house. With that being said, the bank wants $259,900 for the house. The house is appraised at approx. 284,000. The house itself is appraised at 248,000 and the land is appraised at approx. 35,000. Is this a house worth going after?

Poltracker · 07-05-2007, 08:26 AM

Given your description, did it occur to you that the previous owners may have given it up due to poor constuction issues? Plumbing and possible foundation issues are serious problems that require lots of money. The other issues are cosmetic, but are still pretty pricey. If you are seriously interested in the house, I would have it thoroughly inspected with a general inspector and a structural engineer to get some idea of what you are getting into. If there are problems with the foundation repairs could easily exceed the difference between the price and the appraised value.

mopar · 07-07-2007, 06:24 PM

Being that the home is only seven years old, it is hard for me to believe that the previous owners would not have contacted the builder to have any structural problems resolved. There is a 30 year warranty on any structural problems. The builder is a very reputable builder. In my heart i still believe the previous owners did not take pride in the home. The paint on the cabinets is chipped, which lead me to believe they may have had children.

Poltracker · 07-07-2007, 06:47 PM

Never-the-less. I would still recommend having it thoroughly inspected. I have several friends with houses less than 3 years old who are having nightmares with their builders (in one case it is only 2 mos old custom built). One is thinking of giving it up to the bank. I just wanted you to think of all the possibilities.

Babsymae · 07-07-2007, 09:47 PM

It is wisdom to have thorough inspections done, and by more than one company. It is better to spend a little money on the front end, and know exactly what you will deal with after the sale, than to make a move that could financially ruin you. What may apear lack of pride could be symptoms of major problems.
Better safe than sorry!!?!

jfre81 · 07-07-2007, 09:55 PM

Quote:

Originally Posted by Poltracker

I would still recommend having it thoroughly inspected.

When you buy a house you buy its problems too - people who get in over their heads put off upkeep on their houses only to lose them anyway.

But do check into it. Make sure it is inspected for mold, especially if you are in a humid area (like the coast).

The Answer Girl · 07-07-2007, 11:26 PM

Quote:

Originally Posted by mopar

I recently stumbled upon a foreclosed home that is approx. 4568 sq. ft. It is a five bedroom, 3/1 bath, 3-car garage on a cul-de-sac. The backyard is small compared to what I would like. In my current home, I pay no mud tax. I would be paying mud taxes at the forclosed home. The home is need of repair. The widow sills have been removed. There is damaged sheet rock in the garage. Looks as if someone ran into the wall in the garage. There is some water spots on the ceiling in a few of the rooms. There was a crack in the wall in one of the bedrooms. When we looked outside, the crack seems to not have spread down the side of the house. This still could be possible foundation problems. The carpet, doors, appliances and cabinets either need to be touched up or replaced. The prior owners did not take pride in this beautiful house. With that being said, the bank wants $259,900 for the house. The house is appraised at approx. 284,000. The house itself is appraised at 248,000 and the land is appraised at approx. 35,000. Is this a house worth going after?

Depends on the location of the home, flood situations, what kind of repairs needed.

loves2read · 07-09-2007, 06:26 AM

MOPAR--you obviously don't know anything about the laws governing home construction in TX--you have have any kind of warranty/guarantee that a builder can print up--but if he/company does not stand behind it (and most of them don't frankly) it is just a piece of paper...the state has a "board" that is supposed to supervise home builders but it is largely controlled by large builders and does lip-service to guarding home buyers/owners rights...

most people who buy homes (new ones anyway) have as part of the purchase agreement that they waive the right to go to court and sue if there are problems w/home and builder does not address to customer's satisfaction...they go to arbitration--which is really the bull---- board...no real leverage to MAKE a builder make costly repairs if there are foundation/plumbing problems or any other....
buying a home in TX means that you are just taking a chance on 200-300--400+ gamble...that what you buy will hold up and not self-destruct...

I live in TX, own a home in TX (which has been pretty repair free for the most part so far knock on wood) but I know that there is not the protection for homebuyers here that other states might have and the govt agencies like the cities' inspectors don't do anything close to what an engineer would inspect for....little to no oversight on what it takes to ensure quality build...

IMO--RUN do not walk away from the idea of buying this house--it probably should be condemned...
TX is not a consumer friendly state--