Real estate question 2

genchan · #1 (**permalink**) 01-11-2005, 08:12 AM

This is sort of a follow up to my other question on what things I should be careful to avoid. What things should I look for in a house that may give me a discount when purchasing it, but can easily be fixed to make the house more valuable at resell? For example, if the paint on the walls is old so it doesn't look good, but a fresh coat would make it look really nice.

I'm not looking to sell quickly, but I don't mind spending some time fixing things up. But I am not a professional builder, so it has to be basic things that someone can do themself with the help of a book or manual.

I can build a deck, but I can't restore a plumbing system.

DivaJen · #2 (**permalink**) 01-11-2005, 10:17 AM

Hmmmm.... what about new fixtures? New faucets, new faceplates, new toilets, new lights, that sort of thing? New flooring would make a big difference, and both vinyl and tile are relatively easy to do. No-fuss but well-groomed landscaping would give the house greater curb apeal, when the time came for that.

When we bought our house, it had a new (but cheap) roof, new paint (again, cheap) and the wood floors had been refinished (that was well done). Those were nice to not have to think about immediately upon moving in.

amomof4 · #3 (**permalink**) 01-11-2005, 01:01 PM

The biggest thing to worry about is mold damage. Once a house has mold, u pretty much can't get rid of it, and the insurance companies really limit mold damage coverage. I think the limit on my policy is $5k.

Another thing to be concerned about is flood areas. Insurance policies do not cover flood damage. So if the property is even close to a flood area, u would need to purchase flood insurance, which does not really give u good coverage.

U would also not want to buy in an area that is declining. It would be better to buy in a bad area that is improving than a good area that is turning bad. So check out the neighborhood to make sure other homeowners are taking care of their property.

We bought one house that sold freguently. The neighbor next door was a big jerk and ran out the owners. When we moved, we rented really cheap to compensate the tenant for living next door to a jerk. So, check out the neighbors.

terry1156 · #4 (**permalink**) 01-12-2005, 07:48 AM

Look for houses that haven't kept their gardens in good shape. It makes a huge difference in what they can get for the house and you can get a discount if the garden isn't in very good shape. If you are going to be there for a few years, you can get the garden in shape little by little and it will increase your resale value.

PrincessPerky · #5 (**permalink**) 01-12-2005, 11:04 AM

*giggle* looking out my front door that strikes home! I t hasn't been green since we cut it the first time back in 2002!

akaivyleaf · #6 (**permalink**) 01-14-2005, 07:33 PM

Mold? Doesn't bleach kill it? I had a mold problem in the basement on the cinder blocks.... with 2 parts bleach and water solution, applied liberally every month for 3 or 4 months the mold was successfully killed. Or is this a much more serious problem.

amomof4 · #7 (**permalink**) 01-15-2005, 09:50 AM

Yes, bleach kills mold. However, when the mold has attacked the house, it is in the frame of the house. Basically, you would have to gut the house down to the frame to kill all the mold. When insurance companies use to cover mold, it was cheaper for them to demolish the old house and build a new one.

amomof4 · #8 (**permalink**) 01-15-2005, 04:08 PM

Getting into the frame of a house is much more serious.

Also, there are 2 types of mold. Most fall into the harmless to humans category. Then there is a type of black mold that is very harmful. And often the doctors misdiagnose it as asthma.

A couple wanted to rent a house that I had availabl. I asked why they were moving. The had bought a mobile home and lived in it for awhile. The husband was sick most of the time, and told him he had asthma. Turned out his home was totally contaminated with black mold. This is not the first time people have told me stories.

When we first purchased our triplex, we had a hard time finding insurance. Since our area doesn't have floods, quakes & other such stuff, I was puzzled. I asked the agent how come so many of the insurance companies had pulled out of our area. She told me it was because of the mold claims. But rotting houses have never been covered under insurance. She said the insurance companies had be rebuilding the houses because of the liability risks of someone living in a house contaminated with mold.

If you go into a house & smell mold, run. It is not a good investment other than land value. You will probably eventually be sued when your tenant gets ill, or you will eventually have to build a new house. The other option would be to sell it, not disclose it, & get sued by the buyer. In any event, u lose. Not worth the risk.

amomof4 · #9 (**permalink**) 01-15-2005, 04:17 PM

I should point out that I'm not talking about the green mold that may grow on cinder blocks (caused by cinder blocks being in contact with the dirt), or the mold in bathrooms (caused by poor cleaing habits), or the mold that grows around the window frame (caused by bad windows that allow condensation). These problems are easily fixed.

One time we had black mold (it looked like tar spots) growing in our pool. We were never able to get rid of it, but we were able to control it. I don't know if this is the same kind of mold that can grow & infest houses.

Unfortunately, I only know the mold problems through experience.

However, there is a company that guarantees the removal of mold from a house for $20,000 (might by $10k). I guess that's cheaper than rebuilding.