Should we invest in a home that was unoccupied for 6years?

9 years ago

There is a cup-de-sac where a builder built 5 homes, of which he lived in one and sold one. The other 3 remained unsold for 6 years until another builder came in a bought up the remaining 3 homes and gave it a face lift. All that was done is cosmetic- with home depot countertops, fixtures, &fabuwood cabinets in kitchen. The workmanship is of mediocre quality but the only hi light is that they did provide wolf and subzero appliances in the kitchen. My concern is that they are listing this home as a new construction which IT IS NOT and they are asking a premium price for the home. We are in need of a larger home which is hard to come by in our neighborhood and this is what is currently available. Do i have a need to be concerned? What Signs should I be on the LookOut For? Should we take the risk and place an offer?

All your feed back is greatly appreciated !

Featured Answer

PRO

Cancork Floor Inc.

9 years ago

Unoccupied homes can have a myriad of problems. Mold being the biggest, baddest boy on the block. Rodent/insect infestations also come back to haunt those who go this route. If you do this, hire a home inspector and pay them a SCHWACK of money to do an 6-8 hour inspection! You want them to get into the attic, you want them prying up anything that is loose, etc. You want photos...and if possible you want mould counts/readings for air quality. Mold/moisture are your biggest issues.

You also want to research how these abandoned buildings should be listed. If they are listed as "new" but you know they were vacant/abandoned then you can ensure the listing is legal. The realestate agent MUST work to the letter of the law. If you point out the 6 years = abandoned building...you might just see a nice little drop in price.

Ask the builder to guarantee everthing as if it IS NEW! That means you want the FULL warranty on the roof!!! The roof is 6 years old...that means it might only have 9 years left on a 15 year warranty! Not acceptable for a "new" build. Hot water tanks, furnaces, the WORKS! You want it written down that the "new" builder is offering the same as a "new build". Of course they won't do this because no one is "that dumb". If they DO OFFER IT, then I would be very weary. It would worry they will pull up stakes and leave the area with no way for you to "find them" when their warranty goes down the toilette.

Push. Push. Push and then push some more! Get every stick of builders warranty you can out of the "new" builder! Or get him to drop the price (this is more likely)...because you are stepping into something that could be a money pit with low level finishings.

Be prepared to have to IMMEDIATELY remedy something that NO ONE knew about...'cause no one lived there! This is risky business. Have $20,000 cash ready for the emergency that will happen inside the first 1-2 years.

Comments (10)

User
9 years ago
The only person that should buy a home like that is a contractor who is fully qualified to take care of a gazillion hidden problems by himself with his labor. And it needs to be at least 30% below market value even then. Anyone else would be risking a money pit.
coffeemama1 thanked User
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Curt D'Onofrio
9 years ago
Agreeing with above comments (A full inspection is required). Like to add though...I see red flags. Why's the reason it was unoccupied for 6 years ? Absentee landlord ? What's the crime rate in area ? Homes are an investment, so if area no good...home resale value no good also.
Kelley Dockrey
9 years ago
it is interesting that the contractor is representing it as new construction. I guess that he does not understand strict liability and worse yet, he is committing fraud by representing it as new construction.

one issue with the appliances is that their warranties have most likely expired.

if you do purchase it, you definitely want the seller to pay for a home warranty.

since you have lived by this property, do you have any idea why it did not sell previously?
coffeemama1
Original Author
9 years ago
last modified: 9 years ago
thank you all for the feedback- the 2nd Contractor purchased the house and did cosmetic upgrades such as installing new cabinets, appliances, fixtures.... etc and probably rearranged the size of the rooms. Which is the reason that it didn't sell. The initial contractor had built the house using a horrible floor plan and had a $3.6 mil price tag for a 5800 sq ft home. No one bought it It was ludicrous for the area. Then the 2nd contractor came in and finished up/corrected the problems of the home and had an asking price of $2.6 mil which then sold for $2.4. The home that I am interested in has an asking price of $2.4 mil but is a 1000 sq ft smaller. We gave them 2 separate offers of which they had no counters and keep telling us to offer more without coming down. They seem very sure that they will get close to asking price but the house doesn't look nearly as good as it could've have due to the quality/ color choices of items used. The only perk was found in the kitchen where they used subzero and wolf (fridge/freezer/range) Everything else in the house is big box store items. Which isn't as big of a problem except when they are expecting the buyer to pay for it as if it were premium :-/ The home area is not prone to crime ( occassionally there are issues)- but the main reason for it not selling is because of the price. After awhile it was also taken off the market-
leemiller
9 years ago
I wouldn't pay a premium for the home you're describing.
OldGrayMare
9 years ago
If you have even ONE little voice way down there in the pit of your stomach that is saying "uh oh", then LISTEN to it!! No matter how tempting this might seem.....this sounds like NOT a good idea. Remember, it's only a house.....and there are/will be more out there. Only when you are living in it and happy with it, can you consider it a "home".
willy4
9 years ago
I think it makes for a good bargaining tool. You know when it was built, you know the history. Make a low offer on it but get an inspection first and don't forget the radon test! Good luck
mcbmd3
9 years ago
I would walk away.
dbrad
6 years ago
Decide on a price range that you would both feel comfortable in were they to accept, as well as kick yourself if you knew they sold it to someone else at. Make your offer with eyes wide open and stay within that range. If they want more, walk away. There will be plenty of inventory in a few years.