overthinking real estate

[redxblack]

So I found a place that I love and is just a hair above my budget. I could rearrange my expenses and afford it, but would be house-poor for a couple years. The place was built in 1961 and not updated at all since 1976. I'd be on the hook for a new furnace, possibly water heater and the kitchen needs to be gutted and done over. I've factored all of that into my calculations. Of course I'll get an inspection if I decide to move to the next step, but I was wondering if there's anything you knowledgeable lot would recommend investigating before I drop a few bills to get a professional out to look it over.

To get the important stuff out of the way, two car garage and enough land for a dimby very near a national park. It's also the worst/cheapest house in the neighborhood. All the comps sold for well over $100,000 more, but they're normal houses and this is a weird mid-century modern that looks like the venture brothers compound. It's swank.

[Buckethead]

looks like the venture brothers compound. It's swank.

I'm sold. 

Wait, what was the question?

[ducpainter]

What's the insulation like?

[rgramjet]

Basement?  Moisture?

How's the roof looking?  Any dislocation or signs of moisture on the sheathing?

[Drunken Monkey]

Location, location, location.

Don't buy into a place that's on the decline. Check realtytrac for the number of foreclosures in your area to make sure you aren't left holding the bag on a ghost town. Lots of foreclosures mean bad things for the future of your area. On the flip side, they can also mean a lower price.

Beyond that, you had me at "venture brothers compound" 

[Bun-bun]

Check for cracks in the foundation/basement walls. Kiss of death.

[ducatiz]

If it hasn't been updated since the 70s, factor in about 50-100k in fixes. 

We bought a house also built in '61.  The prior owners were fat and stupid:

-  Kitchen wasn't just outdated, it barely functioned.
-  We removed 15 trees, one had a 18" limb over the house.  We still have about 50 trees on the lot.
-  Bathrooms dated, toilets ancient
-  Wood Floors were in horrible shape
-  originals single-pane double hung windows
-  Stairs were ruined from hippo-sized asses going up and down (albeit s l o w l y)
-  Yard was a mess
-  NO insulation anywhere
-  Asbestos tile in the basement.


I spent 3 months working on it before we moved in.  Tore out the old kitchen, tore up the floors and stairs, ran new wires and gas piping, new bathrooms, etc.

Adding attic insulation and putting in new triple pane windows changed the house.  THe first winter was awful -- ice on the windows on the INSIDE. 

Inspections tend to be CRAP.  If you can get a good reference for one (but NOT from your RE agent -- it's his cousin or buddy) it might be worth it.  Ours was so-so.  He found small problems with the plumbing and floors and found the asbestos tile.

All of that went into the negotiation. 

But he MISSED the big make the beast with two backsING TREE on top of the house (we did too but we aren't inspectors) which cost us 6 grand to remove and missed the electrical problems in the house (bad wiring here and there).

Inspectors:  YMMV

You need to do it yourself and get some friends who know more than you..

[Stella]

Same as the above plus:

* check the water pressure.  Low pressure could cost you THOUSANDS as it did me. I ended up paying to repave the street because of old pipes that also had tree roots growing in them (plus the multiple costs involved to re-landscape AND the cost of new pipes to my house).   

*  insulation:  reiterating this potential wallet eater.  I had the same problems that 'Tini is going through.   


Sounds like a really interesting place so if you're ok with giving up life outside of a house for a few years, go for it!  Might be well worth it (or not). 

[il d00d]

Another cautionary tale to add:

My inspector was a practicing, licensed electrician who missed *several* big electrical things, a couple of which I looked at and asked about and was told "yeah, not ideal, but not a big deal".  Loose nomex running across the back of a couple cabinets in the kitchen for example - not even remotely up to code, I was informed by a competent electrician later.  Another one was the meter in the back not being at eye level - this does not affect anything functionally, but it is an expensive fix I get to pay for.

Anyways, lesson learned.  For my next home purchase, I would rely on an inspector for another set of eyes, hoping that they might notice something I didn't.  And that's about it.  As far as assessing cost, or how broken something is, I think your best bet would be to get someone who stands to profit if something breaks to give you the worst/most expensive case scenario.  Get an AC guy to check out HVAC.  Get a foundation guy for the basement/foundation, etc.  Even if it costs you $100 in labor, it is money very well spent IMO.

Another thing to note - I got a home warranty when I closed.  When I had an electrical problem, the warranty company would not cover it since the problem in question involved wiring that was out of code.  So, don't count on a warranty being an umbrella policy, or generally being worth a shit for non-new homes.

Aside from that, take lots and lots and lots of time visually inspecting the place.  You'll likely find something new every time.  Put together a list of questions for your inspectors or contractors.  I would talk to future neighbors whose homes were probably built by the same builder, ask about any weak spots, issues with drainage, soil stability, and previous owners.  If you have any concerns about the foundation, PM me and I can probably give you my quick and dirty checklist.
Sound like a neat place - I hope it works out for you.. 

[redxblack]

Great points, thanks! I really do appreciate the laundry list of things to look at. I knew home inspections weren't too valuable, but still necessary. I had no idea a warranty was so worthless, so thanks again!

The architecture is unique, to say the least. The house is built partially into the side of a hill, so one basement wall is a typical basement and the opposite is windows. I guess I should post a couple pics. There are some cracks in the basement wall, which is why I probably will pull out and run away. I'm guessing the drainage is improper and water is pushing the blocks. There's no water damage inside. The cracks are slight, but make me nervous.








Insulation will be a problem, I suspect. The old man who lives there is eccentric/odd. He keeps the place COLD and goes away during the winter (he's in FL right now). I can handle bat/spray foam myself, having some light construction experience. The windows (most of the house is windows) are double pane to create a greenhouse effect, but there aren't a lot of walls to insulate.

[redxblack]

I can't tell if those pics posted or not as my workplace filters images.  
edit: pics repaired.

[Oldfisti]

I can't tell if those pics posted or not as my workplace filters images. 

I'll derby when I get home if not.

Yeah, pics no worky

[pitbull]

lots of good stuff, so I will avoid repeating any of the excellent suggestions already.


check for mold........it's bad juju.


more specifically..........check with local authorities to make sure it never housed a grow-op

grow-op mold = really bad juju.

[redxblack]

One thing I can be relatively sure of is that it was never a drug house. The architect lived in it (an architecture prof at a local university), and he sold it to a lit prof/author. I'd be the third owner. I tried to look for mold and didn't see any, but I didn't pull the walls apart, either.

The last pic is the back of the house. There's a cinder block addition that functions like a deck off the master bedroom. It's unfinished.

[capt steubing]

looks like Cameron's place from Ferris Beuller!