Re: What the ?!?! - Posted by Jim IL
Posted by Jim IL on April 15, 1999 at 15:22:20:
Check with your city requirements on “who” can do the work. Many of us who do rehabs and whatnot use our own contractors and/or do some of the work oursleves.
In one of my neighboring cities, I found a home like this. The city had condemned the house, and even tried to negotiate for the seller to demolish the home.
I knew it could be fixed, and for how much. I got the home under contract, and started to get my rehab crew in order. The city then called me and asked if I’d consider letting the tear it down. I said "no, I’m going to fix it up and sell it."
They gave me that “long list” of irrepairable items, (which was WAY off), and said that IF I went ahead and bought the home, I could only do the work myself if it was owner occup., and if not I had to use contractors from there “approved list”. which of course was ALL union and way too expensive. By using thier list, my repair estimates would have more than doubled.
So, we got out of that deal, based on the fact that the seller and sellers agent had failed to disclose that the home was on the cities "Probelm property list."
They gave us a hard time at first, but then I showed them copies I got from the city, of certified mail letters informing them and demanding compliance.
I also told the RE agent that the “state board” would definately hear from me.
Needless to say, we got our earnest money back, and walked away unhurt.
By the way, that home is still standing and still for sale. (although, now for WAY less, and the listing says, "some city violations exist.)
So, check with your city for “special requirements” like those, and if you are clear, GO FOR IT!!
Just be accurate in your offer, and allow for repairs and a fudge factor.