House failed inspection

[allycat0303]

Hi everyone,

Well I think the title says it all. We found the house we wanted, for the price we wanted, my boyfriend was counting down the days until he moved in, and we both thought the inspection was a formality (the owner bought the house 8 months ago and was forced to sell because of a transfer). So you figured that how much could go wrong in 8 months???? Well we paid $500 and cleverly hidden under the balcony, the inspector dug and dicovered a crack large enough for my boyfriend to fit his entire elbow through. But the worst part was that PART of the house rests on some flimsy beams, which are nearly collapsed. Basically the house needs to be lifted and the whole foundation relaid. We called a foundation expert and there estimate (after they told us NOT TO BUY IT) was from $40 000 to $60 000 conservatively. So we looked across the street and there was another cute house for sale, so we called just to check, and the agent said that this other house had just been insepcted and the buyer backed out because of the EXACT SAME PROBLEM. Basically the soil in some parts of this city is very, very soft, and this along with less then solid foundation causes the house the tilt and foundation to crumble. We are pulling out of the purchase, and so was the other buyer.

BUT THE WORST part is that our agent spent 2 HOURS TRYING TO CONVINCE US TO ASK THE SELLER TO KNOCK A THREE THOUSAND DOLLARS OFF THE PRICE AND BUY IT ANYWAY!!!!! And I kept saying "NO!" She said the inspector was exaggerating and that this was a minor flaw. My GOD. If she isn''t so obviously going after her commission, it''s not even funny. Since when is $40 000 to $60 000 on a $135 000 house MINOR??? I think she''s on crack.

So we are a bit upset that we wasted $500 and we really loved the house, so we are both really discouraged. My boyfriend was heartbroken because he was really set on the house

and he wanted to strangle the agent. He''s pulling out of the deal and getting rid of the agent. It''s his mother''s friend, but really, what a VULTURE. Sorry for the vent ladies, as you can tell, it was not a productive day.

 

[AChiOAlumna]

It may seem like you wasted $500, but really you invested $500 to find out that buying this house would''ve cost you a lot more money and heartache...be glad that $500 was all you lost in this deal...

It also sounds like your real estate agent isn''t working in your best interest....I can''t believe she''d recommend you buy this house after getting an inspection report as you did!!!!

Sorry to hear this wasn''t "your" house...but you''ll find it!! Hang in there!!

 

[teebee]

OMG!!! Up to his elbow???? Your agent had the balls to call that MINOR to your face!!!! Sounds to me like that witch has already spent her commission!!!! I can''t believe she was still scrambling to get you to move forward on this!!! Vulture is right Ally!

I know that when I was looking at homes several years ago, there was one house that I & my agent walked into and I was thinking it was really cute - but after being there a few minutes she told me that I could go ahead and look at the rest of the house but she wasn''t going to let me buy it - she''d already spotted some major problems right off the bat and knew that it would take thousands of dollars to make the place structurally sound. A good agent, and an ETHICAL agent, will not only discourage you from making a bad investment, but will downright refuse to let you make that kind of mistake. Most of them have reputations that they are looking to either maintain or build - obviously this lady of yours must not give a damn!!

Wow, I''m soooooooooooooo sorry that your having to back out and have wasted $500 - but, I agree with AChiO, you really just spent $500 in order to not waste $135,000 + $40,000-$60,000. And think about what it would take to resell it down the road - what a nightmare!!

 

[MelissaSue]

There are sinking houses around here too.. In the most expensive home area, no less.. Needless to say, those property values went down a little bit a few years ago.

It sucks, but achio is right.. its really good that you found this now and not later!

 

[partgypsy]

Sorry the house didn''t work out for you, it sounded so nice. But that''s what inspections are for.

 

[MissAva]

Well thank the Lord that you had a home inspection! I cannot imagine telling someone to buy a house with major issues, what a rotten person. And that the seller is standing firm on price is almost funny. I wonder if that is the real reason he is moving so quickly...
You will find the right place. Sending good thoughts your way.

 

[allycat0303]

Hey everyone,

Thanks for all the warm wishes, I didn't think that buying a house would get this stressful!

Well this morning my boyfriend demanded to be let out of the contract and the agent was still insisting that he buy it! She even called him at 9:00 am to keep on harping about it. She said to us that she would verbally terminate the contract and that it didn't need to be formally submitted. I checked with Quebec Law and we are required to give WRITTEN NOTICE!!

But then, he met with her and told her in no uncertin terms that he was going to report her to their ethics board if this continued. All of a sudden she changed her tune, and insisted that we were making the right decision

Ok....so we signed a contract that said the inspection failed, and my boyfriend triple checked everything to assure that she didn't try to slip one by us. Funny how she previously said that the contract could be VERBALLY TERMINATED??? We went to the head office of the agency and got some additional info about the house (which she incidently had access to and didn't SHARE!)

First of all, another promise to purchase had been made and then the buyer backed out because of the insepction. Now in Quebec LEGALLY the seller/listing agent MUST disclose this fact, but they didn't and neither did our agent! This would have saved us the inspection fee. Secondly, this house initially had an underground pool whose structure was destroyed because of the shifting soil. However instead of removing the pool properly, it is buried under the lawn! Which following municipal laws, is illegal because it has to be completely removed from the ground. So we would have to do that at our cost! Another vice that the sellers/agents didn't tell us about. ARGGHHH I feel like I can't trust anybody in this purchase (except the inspector). BUt thank god that we got copies of the papers, because the current owner is now aware that he is facing a $60 000 loss on his house, we don't want to get roped into buying it

. It's stressing me out a bit. I won't feel better until all of the paperwork is finalized. And I don't trust our agent for one second so I feel like we need to be ontop of everything.

 

[AChiOAlumna]

allycat...sounds like you''re moving in the right direction! Sorry this is has been such a stressor, but you''re learning quickly how be an educated house buyer (like being an educated diamond buyer!!)...

We bought our house 8-1/2 years ago and it was probably one of the most stressful things we''ve ever done since being married...we were calling our mortgage broker at all hours of the night in panic and dealing with shady real estate agents ourselves...it is a stressful process, but once you''ve found the house that is truly meant for you, it''ll be worth it! Hang in there!!

 

[Blue824]

Awww, I meant to respond to thsi earlier. I''m sorry about the inspection, how frustrating! But seriously, that $500 was a great investment! I can''t believe that agent. You''d think since she was a friend of you bf''s family that she''d try extra hard to make sure you had an awesome place instead of a money pit! Good luck with your continued search. It can sure be frustrating, but once you find the place, it''ll be worth it

 

[perry]

One way to look at it is that your $500 investment earned you $60,000 (that you would have had to spend if you had not invested the $500).

Not bad at all.


Move on and count your blessings (and get ready to inspect another house).


A number of years ago I bid for a small house here in Wisconsin. 1 story on the order of 20 ft wide x 35 ft long, with a full basement, and no garage.

This was a kit house built 40 or 50 years earlier - and had been built wrong.

In adition, the owner had purchased it for $13,000 18 months earlier, did a lousy job installing a new furnace, and had cut the roof rafters to create a staircase into the attic, and slapped cheap panaling to creat a attic room (now a 2 story house), so that they could "flip" the house for a profit.

I knew that the roof had been structuarlly damaged in the process.

Anyway, I offered $18,000 and had worked out the plan for how I was going to rebuild & upgrade the house. (stip down to studs - reinforce, insulate, new entrance to basement, etc..) complete with running 3 steel I beams in the basement to properly support the original incorrect building of the floor joist, and tearing the roof trusses off and installing new ones built for 2nd room in attic (and a much larger room at that - with spiral staircase access). My repairs and modifications would have corrected and improved all the structural problems (furnature access for the 3nd floor would be over the roof of the new basement entrance through a new 2nd floor door acessing that roof - which would also count as an emergency exit).

Well there was a bidding war - and someone else was suckered into purchasing it for $35,000.

Several months later they went down to get a building permit for some "minor" work - and their explaination did not make sense to the building inspector - who promptly invited himself over to take a look.

This resulted in the immediate condemation of the attic room, and a 90 day fix or be condemed order to rebuild correctly the incorrectly built floor trusses (they had to jack up the building and rebuild - no one thought to put steel beams under it as they were just following the direction of the building inspector - the difference between telling them you have a problem and proposing a solution and them finding a problem and them telling you what you shall do, rebuild the attic trusses (back to a one story house), redo the electrical, the furnace, etc.

I heard that it cost this family $45,000 to bring the house up to code - and rent other living space while it was being fixed up.

What was the difference here: I knew enough about houses to see the problems and knew what I was getting into (and I would have doubled the living area of the house for about $20,000 and a lot of sweat equity).

The other folks ended up spending $80,000 for about a 700 Sq Ft house (in a town where $80,000 would buy a good 2 story 1500 - 2000 sq Ft house with a garage.

It only cost you $500 to find out the same thing. Might I suggest that this may have been the best investment of your life.

Oh and your feelings on the real-estate agent: Your right. Why don't you look and see if you can find a real-estate broker in your area. The difference is that the agent represents the seller (and is paid by the seller). A broker represents you.


Perry

 

[Demelza]

That''s quite a story. So many people not doing what they''re supposed to be doing, legally and ethically. My husband and I just bought a house (our first) and it was extremely stressful. And we were dealing with very honest, trustworthy people. It sounds like you''re doing everything right. I think finding the right realtor is half the battle. Ours was absolutely wonderful and really guided us in the right direction. Good luck and keep us posted!!

 

[LadyluvsLuxury]

Allycat, I''m so sorry to hear you all had that happen, but like others have said this is a true blessing because just imagine the alternative

. Don''t give up, you will definitely find what you are looking for!

 

[sparklish]

Wow - I hope you are getting a new agent too! Was she the seller''s as well as the buyer''s agent? You should report her to the ethics board even so!!!

 

[Diamonds4Me]

Date: 7/30/2005 9:44:46 PM
Author: teebee

OMG!!! Up to his elbow???? Your agent had the balls to call that MINOR to your face!!!! Sounds to me like that witch has already spent her commission!!!! I can't believe she was still scrambling to get you to move forward on this!!! Vulture is right Ally!

I know that when I was looking at homes several years ago, there was one house that I & my agent walked into and I was thinking it was really cute - but after being there a few minutes she told me that I could go ahead and look at the rest of the house but she wasn't going to let me buy it - she'd already spotted some major problems right off the bat and knew that it would take thousands of dollars to make the place structurally sound. A good agent, and an ETHICAL agent, will not only discourage you from making a bad investment, but will downright refuse to let you make that kind of mistake. Most of them have reputations that they are looking to either maintain or build - obviously this lady of yours must not give a damn!!

Wow, I'm soooooooooooooo sorry that your having to back out and have wasted $500 - but, I agree with AChiO, you really just spent $500 in order to not waste $135,000 + $40,000-$60,000. And think about what it would take to resell it down the road - what a nightmare!!

teebee, that's a wonderful thing that your agent did that for you. I'm in this business and its sad to say that there are agents out there that only see clients as walking dollar signs

ally, that's terrible about the house. You were so excited about it. But at least you know now. As unfortunate as it is for the seller at least it isn't you that is going to have to cough up $60,000. But I wonder who his agent was and if he was aware of any of this up front? Sounds like a major case of Willful Omission

Its also a VERY good thing that he stuck to his guns and demanded that the termination agreement be in writing (was the termination for the purchase of the house, the agency agreement or both? I hope both! Fire that firm!). I can't stress enough: GET IT IN WRITING! to COVER YOUR ASS'ETS! You may also want to contact the real estate commission. Here you can call anonymously and give them the scenario and they can answer any questions you have. Of course if you tell them all of this they are really going to want to know who that is. It stinks that you lost $500 but what a great thing it gave you. Knowlege and peace of mind.

I also have to say..some friend! Have you guys said anything to his mother about this friend of hers? I would think that she'd be pretty ticked that someone she considers a "friend" would pull a fast one over on her son and GF.

Keep us posted!

ETA: This is just out of curiosity: Was she acting as the selling agent, buyers agent or both (dual agent)?

 

[allycat0303]

Hey everyone!

Thanks for the replies, I''ve been trying to get over the disappointment (and the very real shock of stepping into the real estate world). My agent was our agent (buyer''s agent) . So from what I''ve seen, she was extremely greedy, and eager to make a fast sale. She really did not care about our best intrest. I think the most annoying part is that she kept saying "Some agents have no morals

" I think that''s kind of ironic.

Now what happened is that the listing agent, from the very beginning we felt was a SHARK. All her tactics/methods indicated this. She''s been in the business for 20 years, and her borther, father, mother, siblings, are all real estate agents. We found out after that there have been 2 other offers on the house. The first on didn''t pass at the bank, but the SECOND ONE FAILED THE INSPECTION! Now I don''t know if by law you are required to disclose that info, or only disclose if the potential buyer asks. Unfortuantely, we never got to speak to the listing agent, and our agent either never asked, or didn''t think it was important. Had we known about the failed inspection, the house would have been a non-issue.

So we''ve ditched our agent, and we are going to just contact listing agents ourselves. She really didn''t protect our intrests, and was putting pressure on us to bid more then we were comfortable with. In all cases, we totally disregarded her advice, but honestly, why have someone work for you that seems like they are intrested only in their own profit even if it means financial suicide for your client? Mother of a friend or not, she made it a really bad experience, and we aren''t giving her the satisfaction of a commission.

Thanks for all the encouragement, I''ll let you know when we find something.

 

[Diamonds4Me]

Date: 8/8/2005 10:09:40 AM
Author: allycat0303
Hey everyone!

Thanks for the replies, I've been trying to get over the disappointment (and the very real shock of stepping into the real estate world). My agent was our agent (buyer's agent) . So from what I've seen, she was extremely greedy, and eager to make a fast sale. She really did not care about our best intrest. I think the most annoying part is that she kept saying 'Some agents have no morals

' I think that's kind of ironic.

Now what happened is that the listing agent, from the very beginning we felt was a SHARK. All her tactics/methods indicated this. She's been in the business for 20 years, and her borther, father, mother, siblings, are all real estate agents. We found out after that there have been 2 other offers on the house. The first on didn't pass at the bank, but the SECOND ONE FAILED THE INSPECTION! Now I don't know if by law you are required to disclose that info, or only disclose if the potential buyer asks. Unfortuantely, we never got to speak to the listing agent, and our agent either never asked, or didn't think it was important. Had we known about the failed inspection, the house would have been a non-issue.

So we've ditched our agent, and we are going to just contact listing agents ourselves. She really didn't protect our intrests, and was putting pressure on us to bid more then we were comfortable with. In all cases, we totally disregarded her advice, but honestly, why have someone work for you that seems like they are intrested only in their own profit even if it means financial suicide for your client? Mother of a friend or not, she made it a really bad experience, and we aren't giving her the satisfaction of a commission.

Thanks for all the encouragement, I'll let you know when we find something.

That is very important information and seeing that the seller did no repairs after this then it is something that should have been disclosed to you without you having to ask. ETA: She should have also disclosed the info on the soil in the neighborhood as well. Even if nothing was wrong with the house at this time and it passed inspection, it could have failed later down the road and you'd be stuck with it.

I'm wondering...is there some kind of selling bonus that you weren't told about? To push a property like that knowing that it is a money pit and not disclosing pertinent information, there had to be a reason for it. Such as an extra $1,000 to the selling agent or something along those lines. Here, if there is a selling bonus, we MUST disclose that fact to the potential buyer up front...along with the other pros/cons attached to the property.

Morals, huh? I'll say! Some morals she has. If those are her morals I'd hate to see what the other's morals are if she poo-poos theirs like that!

Its such a shame. Its agents like that that give us a bad rep.

I'm just thankful that you didn't allow her to push you two into this. She was obviously desperate for something.

Keep us posted on your new search!

 

[Croí]

Ally
This truly sucks I do agree with everyone else - you are LUCKY you didn''t buy it and find out all that awful stuff afterwards. I know that doesn''t probably help much with how you are feeling - frustrated and angry (rightly so, with that agent !) ......

but I also agree with the others when they tell you that you will find YOUR house and it''ll be so right and MUCH MUCH MUCH better than this one was and then you''ll be so happy that this episode occured.

as the others said, ''hang in there'', we are all rooting for you !!

*HUGS*
C

 

[MichelleCarmen]

I'm so sorry to hear about this! I know how easy it is to become emotionally attached to a house the minute you see it and the disappointment that follows a house that doesn't work out!

FWIW, my husband and I have boughten TWO houses over the past year so twice now, we've endured the agonizing task of trying to find a house we love and that works for our family, but in the end all the work paid off.

You just have to be strong and keep looking!. Try not to daydream about the house until you in closing! No planning out the funiture and all that because this will just intensify disappointment.

 

[Libster]

Ally,
I''m sorry you are having to endure this, but thank God for inspections, and you found this out sooner rather than later!! Obviously this was not the house you were meant to buy and I bet another pops up any day now that will turn out to be the one!! I know not much consolation, but hang in there!