NEVER Buy These Types Of Houses
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- เผยแพร่เมื่อ 19 พ.ค. 2024
- Buying A House is the largest investment you will ever make in your lifetime so I want to tell you the type of homes that you should NEVER buy so you don't make a HUGE financial mistake.
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Jeb Smith (huntington beach Realtor/orange county real estate)
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#housingmarket #firsttimehomebuyer #realestate - บันเทิง
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I miss the post Pandemic Mortgage rates, those were good times ! The market correction has been massive and with the impending recession it seems like things are only going to get worse.
You can say that again! I have pity for people who spend above 50% of their take home on rent, to think that things aren’t really looking up for the economy and inflation is driving the average cost of living to insane highs, a lot of people might not be able to get through the coming phase.
Well that’s why financial literacy is really paramount, as much as the market can be quite unpredictable and a lot of variables have to be considered while making decisions, one still has to be aware of the basic principles that govern these things in order to avoid obvious pitfalls.
@@cherylhills3227 True, personally I work with an expert financial planner, been with him for years and he saw most of these things coming. Working with him has been the best decision of my life! He Adviced me to buy a Condo in Tampa for $100k in 2020, as of 2022 it was worth almost $200k, and he helped me structure the fin-plan to pay it off, now it’s paid off.
@@GibsonJames-gr3on Oh Nice! What’s his name and how can one contact him.
@@John-ww2fv ERIC PAUL ELMER, really smart guy with a contemporary approach to the market and a warm personality.
In other words, don't buy any of the homes that are for sale right now.
Legit. Like, uh, every home has some issues. Especially noticeable with the naked eye. Can't take this video seriously.
Give me a” grandma house” any day! They may not be aesthetically up to date , but they tend to keep up with all their maintenance!
Absolutely............great point. They usually take great care and when they buy something, they buy it to last.
No one buys the grandma house's they all want new and move in ready only investor want to do the work and they want to low ball the seller.
I bought a home built in 1938. It was a never ending money pit. I was so glad the day I sold it and bought a new home
I do home inspections. Grandma's don't take care of their homes
@@holleybrown5208 yes we do all of that.
My house is 124 years old. It’s a very small house and a mediocre neighborhood. But hey, it’s what I could afford when I bought it. When I got it inspected, the guy told me that my house would still be standing in 100 years. He told me the new construction that he was inspecting would literally not be standing in 50 years. So don’t automatically give up on the old houses. They were built back when people had pride in workmanship and they are built to last. New construction is mostly cheap. Crap.
I personally would never buy a home in an HOA either, but that’s just me.
Agreed!
My old house is 109 years old, now, and my current house is 80.
No HOA for me either
New construction is scary. They look good for a couple of years then it's down hill from there. Builders are in the business of making money and just don't care.
Not only cheap but absurdly overpriced for what you get. Insanity.
I'm hoping there will be a housing crisis so I can buy cheaply when I sell a few houses in 2025. As a backup plan, I've been thinking about purchasing stocks. What advice do you have for choosing the best buying time? On the one hand, I continue to read and see trading earnings of over $500k each week. On the other side, I keep hearing that the market is out of control and experiencing a dead cat bounce. Why does this happen?
Investing in real estate and stocks might be a wise choice, particularly if you have a sound trading plan that can get you through profitable days.
You're not doing anything wrong; you simply lack the expertise necessary to make money in a bad market. In these difficult circumstances, only really skilled experts who witnessed the 2008 financial crisis can expect to generate a large wage.
Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.
My CFA, Desiree Ruth Hoffman, is a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Thank you for this tip. I must say, Desiree appears to be quite knowledgeable. After coming across her online page, I thoroughly went through her resume, and I must say, it was quite impressive. I reached out to her, and I have booked a session with her.
Couple of things you didn't mention. 1) Certain vintages of homes (pre-1980) may be chock full of lead paint and asbestos. If they have been updated they may have simply covered these things up or were not remediated properly. Asbestos floor tiles were very popular. If they haven't then it is a massive expense and PITA to renovate. 2) homes with buried oil or propane tanks on the premises . They leak and you are responsible for very expensive soil remediation. If they are leased then you may be locked into very expensive exclusive contracts with providers.
suggestion, try to tour the home during rainy season/after several heavy rains.
The agent tried to sell me a house that was tilted. I saw cracks in the foundation. That house looks like its ready to fall down a cliff side. They are seeking some poor fool to unload this house. Sad. Never should have built on that site.
And also during the week, not just on the weekend, when the streets tend to be quieter with less traffic.
Even in Africa. Buy your house in the rain season to see where the water flows
When I was in the market to buy some 30 years ago, one of the first things I did during showings was go down into the basements. I looked for water damage, foundation (poured concrete or block) condition, water heater, furnace, pipes, ductwork, electrical panel, insect damage, windows, doors, humidity levels, and any stained ceilings. Only a few homes basements passed my muster. I bought one of them. Not bad for a girl!
One to add to your list is a house that was a rental for years. The owners don't take care of anything. When I bought this place I knew I had to do some expensive work. There was nothing on the market. I had to put a new hvac in, breaker box, sewage backed up the second day, patio, updated the bathroom, big trees cut down, painting, flooring, landscaping, still need a roof along with plywood , bow window needs replaced, needs new fence and concrete work needs done. I am 64 year old female and have worked my butt off.
Disagree. You knew when you bought it it was fixer, so why complain and tell people not to buy a rental? If you didn't want all that work, then you ought not have bought the house. No one said you had to buy that house at that time. You could have waited.
There's two types of homes to purchase ready to move in and fixer upper....sounds like bought a fixer upper
If the house has repair issues that come up during the inspection, always ask for the seller to discount the home by the amount the repairs will cost to be done correctly. Do not ever let the seller get the problems "fixed" as this will always be cheap and/or substandard work.
I'd recommend actually having the repair costs be paid in seller concessions, not discounted from home price. Interest will eat that entire repair discount in the long term.
@@Rosabil You've got it backwards....Don't finance the repairs. My point is don't trust the seller to repair it correctly.
Can u make a video about what to look for in new developments-which are quality builders vs cheapo builders?
Home flipping shows are the reason why real estate is now unaffordable. What were once sleepy investments are now get-rich schemes.
You're not wrong.
Well, not exactly! It might be the reason people want bigger and more modern homes, but the real reason is that we printed $8 Trillion between 2020-2023.
High demand with ultra low rates = higher prices
@@vladimirofsvalbard9477 This was happening as soon as the 2008 recession ended. I saw it take place all over in Long Beach, CA. Lots of small apartment building with around 11 units were sold and everyone was evicted. This happened to me twice. Home prices also rose very quickly from flips and corporate investors.
Yes, i would never buy a flipped house, putting lipsticks on a pig
Not all but there are definitely some.
Never buy a flipper supervised by a realtor.
If it's renewed by a general residential contractor, you will have a better result.
Research and outside inspections are a must.
Not wanting sloped yards or properties that are high risk of flooding.
bought and live in 160 yo home next to railroad tracks. its perfect. LOVE IT! im also a contractor and autistic. Trains, baby!
Trains!!!!
Always looked fot the large electrical towers close to the house.
I am a flooring contractor and most definitely no flippers when to buy a property!!!! You even got to be careful with the builders nowadays!!!!
Agree!
Hi flooring contractor.
Could you tell me what's involved to level a floor? Like something you probably do? I bought an adorable little one bedroom house built in 1930 three years ago my first house. The bedroom & dinning room have what I call fun house floors😆
They are not even at all. I'd like to have these fixed someday & expecting the Amish to fix them, but what's involved? Do you build a level floor over the existing fun house floor? Or do you tear out the floor all together & start over?
The living room & kitchen are level & I have the original wood floors from 1930 & I love them, they are so pretty. The bedroom & dinning room have fake wood floors IDK what, but they are ugly & uneven. Under the kitchen & living room is the basement, but under the bedroom & dinning room there's just around 4 feet between the ground & floors & unusable space. I suspect the bedroom & dining room were additions, but IDK.
Forgot the cost I can't afford it now, I was just wondering what's involved.
Thanks!
I’m a tile contractor and DO NOT buy a flipped home , it’s a disaster!
Let's hear a story or 2.
Check the water pipe coming into the house, if it's lead or galvanized - no chance. Don't buy it unless you have the budget to pull in new pipe. Don't buy a property that shares a driveway with a neighbor. Make sure you know what easements are on your property.
I recently bought and sold a nearly 100 year old gorgeous house in Savannah, Georgia. Those old wood floors, high ceilings and crown molding were artistic wonders. BUT, I did have this type of driveway issue and the woman next door insisted on backing her SUV in, sometimes with her radio blaring. It was not 5 feet from my kitchen sink!
I tried to get a copy of the survey map and believe it or not, in that part of downtown Savannah there WERE no court records on old homes.
Sometimes you try to do things right, but others' mistakes get in the way.
My house is over 100 y.o. and in the 50+ years I have lived here, the shared driveway has not been an issue. I drive a little car and can use the garage. My neighborhood is very nice with few private driveways. Every 3rd house has no off street parking but that doesn't seem to bother anyone. My neighborhood is always mentioned in guides to charming places in Portland.
@@Lily-td3co --No garage, alternate side of the street parking (meaning moving the car often), and in my case, tires slashed twice by gangs which meant parking the car nearly a mile away. Not fund for a senior.
Neighbors house sold for $25k after a flood (only the basement flooded), to a house flipper. They hired low budget contractors to "fix" it up, putting *at most* $40k into it and sold it to the current owner for $140k. Asbestos siding....leaking basement....poorly renovated....
When the market crashes he's going to be sorry he ever bought it....
I would say don't be in a hurry to buy and don't have that dream house concept. Buy what you can afford that does not make you house poor, e.g., less than 30% of your income for monthly mortgage payments. Never waive inspection. Check for water and foundation issues. Check gutters and downspouts, grading around the foundation, standing water outside the house, etc. Check for asbestos in older homes. Set realistic goals. You many need to renovate over time, but it is worth it. I bought a fixer upper, but I could visually see any issues. I spent 10 years cash flowing renovations and it is really nice now. The value is double what I paid. I just renovated one room at a time with kitchen last. I got all of the features I wanted and saw how the contractors did their job. I removed a wall and got proper permits. I started with a new roof and painted the entire house inside. Then, I renovated one bathroom to have a nice bathroom. Later, I renovated another bathroom and the kitchen. I also encapsulated and conditioned an old crawlspace.
You are wise, method, and methodical!
That's what we're doing. We started with removing all the walls in the basement because it didn't allow for airflow and would smell nasty and musty. After the walls were down, the basement felt and smelled better. We're working in the bedrooms now, almost done with the first. Then, we will work on the bathroom or kitchen.
We're also working on the landscaping to make it less maintainence. We found an old path the original owners put in and signs of where they had a small garden off the patio. I think the landscaping would have been gorgeous to see when it was first done. We want to bring that back and we're on our way already.
You left out HOAs... That can be (a lot) worse than a bad roof or a flip.
FYI: Here in FL assessments of over $100K are propping up. Doubling to tripling of monthly HOA fees are getting commonplace.
You should include, that the property tax be figured out - based on the new purchase price - BEFORE the buyer is committed to purchase. Many-many areas the new tax is based on the purchase price and it can double without the buyer being aware, because he/she is shown the old tax amount in the listing.
Very true. In Texas, our property taxes are very high.
Personally, I'd rather buy a fixer upper than buy a flipped home because I'd rather design it in a way that would work for me
Don’t buy a mid century flat roof house in a rainy city. Good luck!
Been in the market to buy a house for 6 month i saw nightmares from new fast built construction to old neglect homes the good home get sold in 1 day
Hi, Jeb. I think you covered most of the issues. This was a really good refresher for me. Two items come to mind: 1) check whether the home is in a flood zone. Flood insurance is expensive and I would avoid that trap. 2) Find out what the insurance premiums are like for comparable homes in the area. Some large insurers have moved out of neighborhoods and entire states for various reasons, making insurance rates less competitive or just plain unaffordable.
Appreciate it and both very good points.
I bought a split level home once ( raised ranch) and had trouble selling it. Always steps to get into house and people were afraid they could not age in place.
Flipper’s also paint pools with house paint. 6 months later your pool is milky. Shame on them.
you bring up a valid point and it's indeed unfortunate that some people have unpredictable experiences with house flippers. That's why it's so crucial to work with knowledgeable real estate professionals who can help guide you through every step of a real estate transaction. Thankfully, these instances aren't the majority. Thank you for watching our video and sharing your thoughts, your input is appreciated!
I have a saying about flat roofs. It's not if they leak, it's when they leak.
True. I worked in roofing for a decade.
Thank you for the wisdom. I love the esthetics of it but a working roof triumphs.
*I'm 50 years old and living in Germany Berlin🇩🇪 I'm willing to retire at 55 if things keep going the way I planned bought my first house last week I'm glad I made a productive decision that has changed my life forever can't be more proud that I'm right now*
Congratulations you are really doing well at your age im 45 and my finance are in rally in mess right now and great tip will really go along way in shaping my life im open for idea
Having dealt with roof issues, I'd recommend getting a single story home, if you can. Also, avoid roofs with steep pitches. If the home was recently painted, I'd also recommend looking at all the neighbor homes from all sides to see which side gets beaten the most by the weather (you can tell by looking at a 5+ year paint job) because that's the side you'll have all the issues with like leaky windows and rotted window frames.
That is good practical advice. Roofing expenses will be much higher on those types roofs
If you live in an area with heavy snowfall, a steeply pitched roof will keep you from having to climb up there to take the snow off and prevent collapse of the roof. Just a thought.
As someone that owned a flipped house, I agree 100% with what you said. No permits, older house that was previously condemned. Overall no major structural issues, just sloppy work. Like the drywall contractor put mud down the drain in the basement. A week after moving in, had to pay to have the sewer main line snaked. The dishwasher drain line punch out on the garbage disposal was not removed, causing the dirty water to circulate in the dishwasher.
As a first time buyer and single parent buying a starter home in the late 90’s, I learned a lot of things the hard way. Got burned again with the purchase of my 2nd home because there was still so much more I hadn’t learned.
One thing that stuck with me was to never trust a realtor who recommends using an inspector that they know. Sometimes they work together to close the deal since I had already been pre approved. It’s like buying a car from the dealership and allowing them to finance the loan and using them to insure the car 🤪!
I was later advised to use a state inspector rather than a city inspector. It may cost a bit more, but well worth it.
You make a good point regarding inspectors. You have to hire someone you know is working for you, not the agent trying to close a sale.
@@rokyericksonroks
Yeah, needless to say but after the first heavy rainstorm, I had a major leak from the roof into my living room 3 months after closing.
As someone getting older, I think about how my mobility might change. I would stay away from properties with lots of stairs or steep driveways. In addition to all of the things you mentioned. We also stay away from lots of overhead wires and properties near oil refineries.
Take some of it with a grain of salt.
Firstly, if you don't ever want to do any maintenance, just rent an apartment.
I had to put about an extra 100k in the house I bought in 2020 and I have the roof to do soon. And the fence.
Here is the thing : at the end of the day, the value increase in the housing market alone already outweigh what I've invested in.
Trying to buy a house in Greater Boston in 2024, sellers don't even look at your offer if you ask any questions, and God forbid you ask for an Inspection. You still need 7-10% over asking, wave the inspection, and somehow convince your bank to wave the Appraisal. I haven't gotten far enough down the Purchase and Sale process to see if you are allowed to use K-Y, but I'll update you when I find out.
Have you tried RI? Train to Boston. Unless you want to live downtown Boston.
I would wait. Market is very overvalued, bank/mortgage space is collapsing as well. Never buy at the top. If there is a specific area you want to be, look at for sale by owner, not agent listed.
Don't buy under those conditions. You will regret it. Not worth it.
@smoofollowingqalroundthewo206 why? Is owners more better than agents?
I bought a flip house and it turned into a nightmare! This is all very true information
Sorry to hear that
We put an offer on a house with condition of an inspection. Good thing. Major foundation issues. It would have cost us almost $300k to fix and likely had already caused hidden damage elsewhere. Phew!
I would never buy a home that have a HOA!!!!!! No thank you.
I disagree. It depends on the neighborhood and the purpose of the HOA. There’s a neighborhood near us that has beautifully landscaped common areas and a lovely lighted entrance. and I would totally live there and happily pay the $500 annual HOA. But before we lived here, we lived in a neighborhood with an HOA in Louisiana. It was OK. They only had a small entrance area to maintain, but yeah, sometimes people can get a bit nasty. The HOA neighborhood near us is extremely well spelled out legally, and in detail, and, the purposes to maintain the value of the neighborhood
@@joysoul4089 some HOAs are 400-500 a month. And the fines are out of control. There are some cases of people losing their home due to fines. I bought a house to do what I want not be tolled what I can do
We bought a house not on a major street, but a through street. I didn’t realize it when he bought it that it was a preferred access street because it skirts the school zone on the other street. it’s not a big deal, and it’s the best we could find at the time, but I do wish we lived on a quiet cul-de-sac. We had always lived on cul-de-sacs before.
I'm a former real estate agent, like you I've purchased and helped others purchase homes. You are 100% correct in this video! You asked for additional feedback... 1) You alluded to it, but a big risk are steep hills, specifically retaining walls and steep driveways. 2) Speaking of driveways, another risk is any property with a long driveway or on a private road - these are not deal-breakers but consider this. 3) Hazards like radon, asbestos, lead, etc. - indeed I would generally advise any inexperienced home buyer not to buy a home older than 30 years. Well, that's my two cents, thank you for your great videos and sound advice.
As an owner of a 1948 home, I completely gutted and redid all pluming wiring new energy efficient windows, insulation Sheetrock, and the frame is much better than anything you would have found in any new build… so that statement does not 100% hold true. Tho I know mine is an exception to your rule😊
@@CM-oj3oi Thank you for replying, I love tiffs! I’m so glad you had success, it sounds like you’re happy and that’s what really matters. As for me, I’m totally with you, it would’ve permitted as needed and I would do all that work myself and know it was done right. I suppose my advice here is narrow, It is intended for folks who can’t do want we can. Peace brother!
I totally agree about the steep hills! I am trying to buy and renovate my grandparents' home built in the 1940s on a steep hill, and the buying process has been like a horror movie. Each report and bid I received has been worse than the last. The home does not have proper ground drainage and the garage on the 1st floor has walls that were not properly stabilized. The house is leaning, and I am now considering major renovations. 😬
Did everything you advised against. Bought a home by train tracks, backing onto a Laneway that leads to a somewhat busy street, needed all major systems replaced. I saw it as a blank slate and have customized it into my dream home. Key in the decision: having a good contract and getting a thorough home inspection.
nothing I said is an absolute..............there are always exceptions to the rule, you proved that. Congrats.
Me too! 🤣😂🤣 and the trees near the highway are being cut down so it’s getting louder but I just like the place. My deal breaker is places too far from a freeway 😂🤣
My brand new house … relatively new … has all the same problems as the house flips.
You mostly just have to buy whatever is in your price range at the time you are available to buy. That's how I ended up with 2 mid 1970, ranch style tinker homes that were NOT updated in any way. 😊
Our entire neighborhood is built on steep hillsides and guess what. The views are awesome! It's just a matter of having qualified Geotechnical and structural engineers to design the building pad and foundation.
Great video!!❤
Nice video!
First time viewer--the "gods" of algorithm put your podcast onto my screen thread.
Thank you for the excellent information. I am currently interested in a property on a hill... and will make sure I understand (through a pro) the foundation issues.
Just passed during option period on a million dollar plus home in an ideal neighborhood because it was on the side of a (beautiful) hill but our structural engineer said it needed 14 piers immediately. We were already nervous about the cost to maintain the extensive retaining walls over time but that was definitely the deal killer. We had won the property in a multi-bid scenario in a major seller’s market so it was hard to let it go on one hand and of course, they had a new deal by the next day and have closed with someone else. Thankfully a week later we did manage to find another property a neighborhood over, not on a hill, that our structural engineer gave a green light for after another seller’s market fight - they only took offers for the first 24 hours of listing. It’s hard to know what to be flexible about when inventory is extremely low but we decided structural issues were not a point of flexibility.
We had a hard time selling our home, it took years. It was on a busy corner and had a built-in swimming pool and those two things were very undesirable for most.
Thanks for the information 😊
So True! Im glad you made this video topic! Its just like buying a car. The minute they are off the lot the value decreases! ❤😊 Happy Home buying! God Bless
The age of all the systems: plumbing, electric, etc. after that if you’re not going to remodel you need good windows. Good windows make an insane amount of difference in your enjoyment of a room. Double and triple pane control heat and sound. If the windows are old,I immediately add in $30,000 to upgrade all of the windows.
I’m on a major street. I sound proofed the front of the house. It’s really nice inside. The front yard is for appearances only, you aren’t going to spend time there.
Never own or loan in HOA. NEVER EVER.
Found this out the hard way. We are selling our home of 10 years just to get away from the Marxist running the HOA. They run around looking for the slightest infraction and send out letters, threatening fines. Never again.
I happily lived in my condo, which had an HOA for 10 years without an issue. The benefit to me was that the HOA took care of all the external maintenance, including repairing the roof, shoveling the snow, and taking care of the grounds, which were quite extensive. I had zero complaints about my HOA. But our condos were essentially a large group of quadraplexes, meaning 4 apartments to a building, with each building being outwardly identical to the other.
I just don't feel like you generally have a choice. I didnt even know about the how until after we had made an offer.
I don’t know why people hate HOA so much? Some are good some are bad, but isnt that case with everything in life? As an example, Some cars are good, some are bad - so do the work and buy a good one. But this idea that all HOA are bad is ridiculous. I love my HOA because it keeps my neighbors in line with weeds, paint, or trash in the yard.
@@Streetconefilm Yes and an HOA keeps cars from
Parking on the streets, vicious dogs, cars being up on jacks repair being done in the driveway etc… HOA are usually better kept areas.
I just bought Jeb! And my property does not meet any of these issues or shortcomings. Had to pay over asking but I'm in the best neighborhood of city so I'll live with it
I'd avoid water and structural issues. Plus HOA--no nosy Karen is going to watch my every move. Wouldn't mind being near a railroad track, if it's not a 24 hour route. As long as the numbers make sense, a new roof, HVAC, and plumbing are doable. We've been our 1913 house since 1989. We've done the roof twice. Replaced almost all the plumbing and electrical, windows, stripped and repainted. It's got all the original charm with lots of 'mod cons.' Hubs is very handy. I'd love to find a one storey on some land and start all over.
Love this. I am a first time buyer and I did an inspection and roden test and the report was terrible. So many issues. The inspector warned me about buying it. The realtor tried to convince me to negotiate with the seller. I have no repairs in my life now now so why would I buy just to own a list of repairs? I walked away.
This is the summary of the rent vs buy decision I’ve been trying to figure out for years. The rental income vs mortgage payment calculation never made sense to me. But this is much more logical and makes far more sense. Thank you for simplifying this!
Most people are unable to handle a fall since they are accustomed to bull markets, but if you know where to look and how to get around, you can profit handsomely. It depends on your entry and exit strategy.
The fact that the US stock market had been on its longest bull run ever makes the widespread worry and enthusiasm understandable given that we are not used to such unstable markets. As you pointed out, it wasn't tough for me to earn over $780k in the last 10 months, so there are chances if you know where to go. I hired a portfolio advisor since I was aware that I needed a solid and trusted plan to survive these trying times.
I tried looking into new strategies to profit in the current market because my portfolio has been in the dumps for the entire year, but everything I tried just seemed to miss the point. Please let us know who your asset manager is by name.
Her name is Sonya lee Mitchell. Hope that helps
Just copied and pasted Michelle on my browser and her page popped up immediately, thank you for saving me hours of researching.
Sagging ceilings combined with ragged cracks aren’t always a bad thing. I have a sagging ceiling with ragged cracks in my garage from when I was climbing in the attic and I slipped and fell onto the top of the ceiling. It looks terrible and I should fix it, but it’s not a problem. It’s a $150-$250 repair.
Agreed about the home inspection. Don't dismiss it because maybe you don't want to know what may come up or you feel you have no options. Get the inspection, then get some pricing for whatever will need repairs. Realtors can and do say "that is an easy fix". To be fair I have heard that more about cosmetic changes but if you cannot stand some sort of cosmetic issue, price that out too. I bought a home with some damage to cabinet doors and was told it was an easy fix. It wasn't. Found matching stained cabinet repairs is really hard.
A good pre-buy home inspection would help protect buyers from properties with many of the issues mentioned in this video.
This is common sense things to know. Awesome video.
Agreed but how often are we NOT using common sense especially when emotions get high?
@@JebSmith so true. In my middle age years now, I've seen what I've done and what other people have done in the world of buying a home. I've learned. Now, I am very careful on the next or final home I will buy for myself.
My co-worker bought a home at the peak of the market in 2021 or so. He waived inspection and contingencies despite my warnings. So far, he has spent about 30k on foundation and plumbing repairs and he is not done yet. There was a pipe broken under ground and it caused part of the foundation to wash away and shift. He has also done a lot of electrical work on old wiring and he needs to work on mold in a crawlspace.
I'm really sorry to hear about your co-worker's experience. Buying a house is a significant investment, and it can be quite stressful when unexpected issues crop up. This just emphasizes the importance of having a home inspection and not waiving crucial contingencies. They're there for a reason: to protect buyers from situations like these. I hope your co-worker's situation improves and that your advice will help others in similar situations
But even if you hire an inspector, there is still a high chance of spending that amount of money for maintenance.
I had a sewer backup problem after 1~2 years I bought my house. When I bought it, the building inspector wasn't able to tell us that might be one of my future problems.
I had to pay about 20K to install a new pipeline and water supply line to resolve the issue.
We rent in a two family part of which is over 200 years old. The landlords who also live in the house rent out partly in order to afford the upkeep.
Yeo so correct on flippers
💯
Personally I love the sounds of trains going by. I’ll take a railroad over a street any day
Just saw a house that was at the bottom of a long driveway, basically in a hole. Beautiful property with grass and big trees, but all I could think was what happens when we have those heavy rains we’ve had for several months in So. Ca.? It also had a strange deep area in the backyard and when I asked about it, the agent said there is no real property line there. Everyone’s ok with not defining it. What? Also if you have a dog or kids, every time you would need to hike up that steep driveway. No thanks! Ran away quickly.
I bought a flipped property ONCE. Never again. They did unpermitted work that the city dinged me on. They also did a poor job on the electeical, and I had to pay big $$ to correct it. It was really cute, but I was glad to cut it loose.
Many well known house builders are also putting out inferior brand new houses. The best thing to do is to get it inspected by an experienced reputable inspector...
Personally, I avoid anything with a massive foundation issue. even if you get a quote for a foundation, that project is going to snowball and be way more expensive than you expected
I met a neighbor who rewired the house worth dollar store extension cords. Wow and sold it. The buyer has no clue.
That's nuts! Should have been disclosed.
Dated a guy who bought a house and discovered the lights over the outdoor pool were wired with lamp extension cord type wire. The friend had experiencing wiring but was just startled.
We had an older home probably MC most likely single owner sitting on almost an acre lot in the city for sale, the flipper who bought truly did NOTHING but remove wallpaper, and repaint. He didn’t touch the kitchen or bathrooms. They were still the original to the house, but when he put it on the market he listed at 20,000 over the original list of 265,000(and 70,00 over what he actually paid). We’re are not far from the largest city in the state so maybe he was looking for buyers in that pool but dang, reto is fine in furniture but I think most people would prefer the amenities of modern bathroom design.
Definitely noises, like a busy road, or backed up to a freeway. Also, houses that are too close together.
I figure if you can get a good location, the other issues you mentioned, although they can be costly; it’s still something you can fix, maybe? You can’t fix location, or if you buy in a homeowner association, you are stuck.
The saying “location, location, location stands true.
Licensed contractors cost an arm and leg… x3 the price of non-licensed, x4 or x5 of DIY. I have gotten way too many outrageous quotes. Like $15k for a 8x8 patio, $23k for 3 showers refresh. 😂
contractors are very expensive right now because they have more business than they can handle...........when that changes, prices will adjust.
So you are letting your stuff rot and become dilapidated but will still want highest price if you sell. Sounds about like it. 😂😂😂 prefer expert licensed help on the cheap…learn and pick up a hammer.
@@ashdav9980 lol. What makes you think I didn’t? How do you think I know the price difference there. 😂Got TH-cam premium for this exact reason. Did my own flooring, deck, plumbing, electric, landscaping etc.
You need to pay for licensed contractors. If I see a house that's had work and I can't find that any permits were pulled, I would never buy it. I also won't let anyone who isn't licensed work on my home. It costs more foe a reason, they are not going to take shortcuts and if they do they can lose their license. Why would I hire someone who is going to take shortcuts when fixing my home? That can add up to even more money later in remedying shoddy work. I wish more people understood this.
And if you say you can't afford it with the mortgage, then you bought too much house. You have to factor maintenance costs in. It's the single largest investment most people will ever make, and you devalue it instantly if you fail on the maintenance.
Sorry, but true.
Get multiple quotes. For one bathroom I got quotes from 8k to 27k. I ended up going with a middle quote of about 13k and I checked all of the references and Internet ratings. Similar quoting for HVAC system. Quotes ranged from 7k to 25k. I ended up paying about 7k and got a good system.
I would do your due diligence on any property even ones that were flipped because homeowners can do shotty work too so do your inspections and have professionals look at the house to see if there’s work.
We call that the Long Island
Spec…..
🤣
One of the local radio show hosts bought a condo last year. Now he has to get a new HVAC system for $21,000. :)
Honestly … any contractor should have the same kind of insurance that doctors have - MALPRACTICE. A house will be our most expensive purchase in our lives yet contractors just do shoddy work and run. It’s horrible.
wall heat. (or any kind of inefficient types of heating) You've budgeted for your expenses but your heating bill is going to destroy you and you'll still be cold. Bring back radiators lol! Also, while I'm on this subject - underground oil tanks (oil tanks in general but underground? forget it). Ugh. I'm about to sell my house soon because I have to and I really wish I could buy my ex out instead. Not looking forward to re entering this market.
Definitely true, in Florida for flipping homes. A place where natural disasters are evident. Old homes are definitely over priced.
My two cents: we purchased our second home in 2016 and it’s on a busy road in a city. However, it’s a very well built (1942) home and we really don’t hear the traffic. So yes, the resale someday may not be as great as other areas, but I know there’s a market. Plus it has a mother in law attached apartment which allows extra income! So don’t be afraid to go look at homes in busy roads…you never know. We never dreamed the home would make us thousands of extra dollars yearly when we bought it - we weren’t looking for that - it was just a bonus! 😂🎉
We bought a house on a a busy road just 24 hours Posted on MLS although it's old but it's walking distance to school, groceries,bus stop etc..im not driving so it's an advantage for me.
I made the mistake of buying my first home on a busy street and limited parking. It is now a rental house that I have tried to sell twice so far. It is very hard to sell unless you significantly reduce the price. It is a beautiful home built in 1961 with brick over cinder block. It will last 200 more years, but people have the HGTV mentality where everything has to be perfect and the busy road freaks them out.
@@proudliberal24-sv1wo we luckily have parking for six cars. I hope we can sell it when we retire. It’s also in a desirable school district… one of the major reasons we bought it so maybe that will help. We have discussed turning it into rental if needed because it’s within walking distance to a huge university and rentals are scarce.
The " Mold " @ 12:30 Can Be Fixed by Laundry Bleach & Water ( a 50 / 50 mix ) . However for the mold I see in This Picture
I would ask for some advice !
My first house had been rented out for several years before I purchased it, and I have no plans on purchasing one like that again. I was regularly running into “the landlord special,” even though I was the owner! Never again.
Mine had been rented for 20 years. Nothing was taken care of . I have put 25k in it so far and have that much work to go at least. Land lords take care of nothing, it's all about money. Then with the market and 30 people bidding on one house you end up paying market value even though you had to put all that money in to it. I would never buy a rental again. I was not aware it was a rental when I bought it . The owner died and the person he left it to sold it.
Great video Jeb, what about nearby cell towers? And what would be the minimum distance recommended away from a freeway to avoid that annoying freeway sound
Cell towers have never been an issue for my clients as we haven't come across them but we have had issues with power lines being a problem so that's something to pay attention to............I don't have a specified distance on freeways, some noise is usually okay but the less the better.
Cell phone towers nearby mean good reception and high data speeds. In fact, if the cell phone tower is too far, your phone has to crank up it’s own RF transmit power to compensate, and that is within inches of your head. These days, smart phones are almost constantly transmitting and receiving data, so this is kind of a wash whether a tower is close by and radiating you, or far away, forcing your phone’s power up and radiating you.
I try to avoid homes with weird easements.
Hello
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Important to get a termite inspection had to walk away from a home because it was infested with termites which the buyer tried to hide
I couldn't agree more! It's absolutely crucial to ensure a full inspection - including that for termites - when purchasing a home. It's unfortunate to hear about your experience. Honesty is definitely critical in these transactions. I'm sure your next home buying experience will be smoother. Thanks for watching the video and for sharing your thoughts.
Many owners fix up their property before sale, so treat every property like it could have shotty work
The current trend is to buy a run down chateau in France. Tempting.
Sound intriguing!
Houston TX is filled with horrible flips..... poorly done is an understatement
Not to mention that after Harvey, homeowners were desperate to remodel their flooded homes and a lot of the work was done poorly. With constant development the flood zones are constantly changing so good luck trying to find a ‘safe’ area of Houston.
@TheAlexa6 very true
New built or less than 5 year old homes only. Otherwise I’ll continue to rent until one becomes available
If I were in the market for a house, I'd use a lot of those issues as a price negotiation tool because I can do the repairs myself. I'd never buy a house on the side of a hill - bedrock or no bedrock. There were homes in my area that suffered from long rains where their homes slid off the hill.
I would stay away from New Construction.
Why do you say that?
It depends on the builder. Some do it right. Some are cutting corners like crazy. But just like existing homes, you should pay for an inspector throughout the build process or if it's complete. Never skip an inspection.
Same as flipped houses corners may be cut
@JebSmith nowadays construction look like printed cheap and ugly houses for insane price.
My favorite are old style houses. High ceilings, big rooms. There is style and life in it. When we looked for a house, we saw a lot of houses about 100+ years and foundation, wood and structure still in great shape. But probably it's something from your "avoid list" because yes, sometimes wire and plumbing needed to be upgraded
@@JebSmith because she can't afford a new home and she is tired of living in an old refrigerator box.
LOL. the house I am currently in was bought by the person for $20K and who sold it to me for $39K after putting in a decent amount of work, including shoring up the (raised) foundation. It's been 14 years, and it's still standing, although it definitely fails the "marble test".
My god, @1:14 is that the conjuring house
Never buy a house at the bottom of a hill especially in an area with average/above average rainfall and/or snowfall. Ask me how I know.
Every house I bought in a crusty neighborhood, and distressed, only cost me money. But I fixed structure. the buyers, whom were flippers, did the cosmetic work, and made money. Once, I saw them do some work, which was subpar. But they made money, because you could smell the fresh paint.
yep............people buy emotionally and then realize later all the problems.
I prefer older houses from the 60’s/70’s-they were made with better material and stand the test of time. We live in a 1979 model and just bought a 1975 model-new houses are built too quick for me to trust them.
We bought a decent sized ranch, on a corner lot. There aren't any stairs to worry about as we get old, and there's room to add in to.
The house was built in the 1950's at a time when house construction was at its best. The house itself is solid, with a great foundation.
Besides us, the house had two other owners. They each had renovations done that are of excellent construction.
The family who we bought the house from, were very abusive to the home. The house was priced well under our budget. We paid in cash. No mortgage with minor repairs was a deal.
The repairs they left us were, needing a new roof, a few windows and a front door. There were minor things, like a broken kitchen cabinet, bent door handles, and a broken central ac unit.
We got a new roof, from plywood to soffits, but we would need to do that regardless, because we are putting up solar panels and needed a reinforced roof. This would happen to any home we purchased in the area.
We are changing out a window for a door, and replacing most of the windows to fit our needs. I love bay windows, and windows that open out for other rooms. So on a mildly rainy summer day, the window can still be opened without the rain coming in. These things we would do in any house we bought.
We took out the oil tank and put in a partial mini split with a duct system. No need to repair the central ac. Now we're saving a ton of money in heating/cooling.
My husband wants a high security reinforced front door (just for fun). So again, we would do this for any house, regardless.
The small repairs we faced didn't mean much to us.
We will be renovating the kitchen just because, and redoing other rooms to fit our need.
I think everyone has to balance the pros and cons of buying a house. Figure out what the deal breakers are and stick to those. Prices can be brought down if repairs are that much.
In our case, we were looking to underbuy so we had money left for repairs. We also save money by not having a mortgage and changing from oil to solar.
The house
You can luck up and get a solid house in new construction
I luv shea homes in San Diego
Meridian builders in San Diego
And surprisingly lennar build pretty solid homes in San Diego not the best but doable
Baldwin and Sons out here
All houses were new at one point in time
Most of the BIG builders do pretty good work and you'll be pretty safe on top of the warranties they are required to provide, in CA it's 10 years.
@@JebSmith It depends they say I have a 4 year warranty on cracks in foundation in garage but it has to be big enough for a nickel to fit in
Plumbing up to 10 years but limited if plumbing is outside of wall only 1 year and that 10 year is limited also