Found Some Problems Post Inspection - Need Advice ASAP! (Texas)

Investor · Member since 2016 · 36 posts · 16 votes

I am currently under contract for an SFR in Texas. The house was recently remodelled but after the inspection, there were some issues found. Although the cosmetic finishes look quite good, there are some fundamentals which could pose future problems -

1) No arc flash breakers (AFCI) at the electrical panel - house was built in 1996 prior to the new legislation kicking in, but this is not up to code. I can only assume as a buyer, I would be required to fix this at some point in the future if there is a problem, which would be expensive..

2) Branch Circuits are wired incorrectly - two neutrals attached to the same busbar, need to install a new busbar at the electrical panel

3) Seller mentioned that the water heater was replaced..inspector found the model is from 2009. I understand you can buy older water heaters as replacements, but this one would be on its last legs in a few years..

4) Found a small patch of mold behind the kitchen sink..been there before and is an immediate red flag. I have not done a mold inspection, but the kitchen was remodelled prior to it being listed so I am surprised to find mold/mildew.

5) Seller also mentioned that the bathrooms were completely remodelled, but a toilet was loose, bath water nozzle was also loose with a gap between the nozzle and the wall, and water handle in the master shower is not connected to anything..

6) No roof vents in the attic, even though the roof was replaced..

Keen to get your thoughts! I'm thinking of terminating, but not sure if these are major issues.

Thanks

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Bruce Lynn

Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes

All these issues sound pretty common to me....your home inspector did a great job of what you paid them to do and that is scare you out of buying the house, so you bail, get another one, bail on that one, and they get 3 inspections out of you, before you understand these are homes.

The inspection report is often more of a status report these days, not a repairs list or a retrade tool....but see what you can get.

My thought is probably every home in the neighborhood will have the same issues if they were all built by the same builder.

None of these sound particularly like a deal killer to me. Even if you have to fix some of it, do it and move on.

Not sure what part of Texas, but these days in many areas you should feel lucky just to get the contract. Minor inspection issues are just the price you pay if you want to be an investor and you want to fix these things or you're just buying a house to live in.

ArcFault while a good idea, was likely not code when the house was built and likely not code for existing homes. Plenty of people all over the US and all over the world don't have GFCI and Arc Fault. Certainly adds some safety, but likely not required code to bring this home up to new standards of construction today by even the strictest cities that do rental inspections....even the ArcFault rules have changed over time.

My guess is the neutrals are just need to be split up. Remember an electrician wired this, approved it and city inspector signed off on it. Pretty common find. It is so common I think it must be acceptable in the electric trade. Is it good idea to split them up, yes, but pretty normal to see this and have home inspectors call it out.

Water heaters...I've seen them last 6-7 years on the cheap ones, and some I've seen last 40 years. Typically I see a lot get replaced about the 8-10 year old mark. Budget for it or buy a home warranty or have the seller buy you a home warranty. I wouldn't bail on a house because the water heater has aged....Just one of those capex you have to budget for. HVAC, Water heaters, roofs....they all have a lifespan.

Did you test for mold? How do you know it is not mildew? If it is mold, is the toxic variety. I would look at this and fix the problem so it doesn't continue. Something probably leaking. Maybe you need a new faucet. If mold scares you, have it tested and remediated. This doesn't surprise me at all, pretty common. This is what should propel you to do quarterly inspections, so things like this don't get out of control by tenants who don't care and don't tell you. Please tell me you've never been in a house, hotel room, camp shower, or school shower that didn't have a little black stuff growing in the grout. Pretty sure I've even seen it in a hospital.

Loose toilets...buy a wrench...tighten the nuts.....if you're buying investment property you are now a handyman. I keep adjustable wrench in my car....the rest of the plumbing I would fix, seal things up, secure things, connect things. Maybe the seller or their trade will do this for you.

No roof vents? Are there ridge vents, whirly birds, electric fans, solar fans?....nothing?...that surprises me a bit. Either you leave it or get some installed...or get the roofer to come back out and install.

To me none of these are worth terminating over....otherwise you loose your option, inspection, and potentially appraisal money and your time. That's easy $1000-$2000 right there that could fix most of these items....and what is to say you don't find the exact same issues in the next house.

Sorry to be a bit harsh and challenging...but to me there is no perfect house, no house without issues. If you find one that is perfect, something will break sooner or later.

Some of this stuff is like cars.....do you fill up at 1/2 tank 1/4 tank or 1/8 tank or when the red light is on.....Safer to fill up at 1/2, but probably not that many people do that. Do you immediately quit driving when the check engine light comes on, or do you stop the car, call a tow truck and take it to the dealer, or do you drive a week or two or a month and then take it to Shade Tree Tony to just let him turn the light out? Do you change tires for safety 1/2 way thru the life or do you run them to they're bald. Everyone is different, but I would also say even if you buy a brand new home, there are always things that the builder and home inspector disagree on...some things are standard practice and some things are gold standard.

Just figure out what you and your tenants can live with or without and provide them a good safe environment to live.

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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
5y
Have you removed the inspection condition? Find out how much those items will cost to repair and use that to lower the cost. This "water handle in the master shower is not connected to anything" is particularly sloppy. also check to see if permits were pulled and signed off.
5 Reply
Eric James
Investor · Malakoff, TX · Member since 2017 · 2k+ posts · 2k+ votes
5y
It's common. When a reno has been done (especially for a flip) you never know what has been covered up. Sounds like this one was done by people who didn't know what they were doing. Everyone and their brother has been trying to get into flipping.
10 Reply
Lynnette E.
Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes
5y
I would run just on it being a flip that was not lived in or done well. It sounds like the flippers put lipstick on a pig. You will certainly find more things wrong as time goes by. Mold in a brand new kitchen means they removed the moldy mess that was there, but did not treat/kill the remaining mold and it is still there on the walls, likely behind the cabinets and under the cabinets. Maybe under the floor as a whole. Ditto for he bathrooms, behind the tiles, etc.
3 Reply
Bruce Lynn
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
5y
All these issues sound pretty common to me....your home inspector did a great job of what you paid them to do and that is scare you out of buying the house, so you bail, get another one, bail on that one, and they get 3 inspections out of you, before you understand these are homes.
The inspection report is often more of a status report these days, not a repairs list or a retrade tool....but see what you can get.
My thought is probably every home in the neighborhood will have the same issues if they were all built by the same builder.
None of these sound particularly like a deal killer to me. Even if you have to fix some of it, do it and move on.
Not sure what part of Texas, but these days in many areas you should feel lucky just to get the contract. Minor inspection issues are just the price you pay if you want to be an investor and you want to fix these things or you're just buying a house to live in.
ArcFault while a good idea, was likely not code when the house was built and likely not code for existing homes. Plenty of people all over the US and all over the world don't have GFCI and Arc Fault. Certainly adds some safety, but likely not required code to bring this home up to new standards of construction today by even the strictest cities that do rental inspections....even the ArcFault rules have changed over time.
My guess is the neutrals are just need to be split up. Remember an electrician wired this, approved it and city inspector signed off on it. Pretty common find. It is so common I think it must be acceptable in the electric trade.  Is it good idea to split them up, yes, but pretty normal to see this and have home inspectors call it out.
Water heaters...I've seen them last 6-7 years on the cheap ones, and some I've seen last 40 years. Typically I see a lot get replaced about the 8-10 year old mark. Budget for it or buy a home warranty or have the seller buy you a home warranty. I wouldn't bail on a house because the water heater has aged....Just one of those capex you have to budget for. HVAC, Water heaters, roofs....they all have a lifespan.
Did you test for mold? How do you know it is not mildew? If it is mold, is the toxic variety.   I would look at this and fix the problem so it doesn't continue. Something probably leaking. Maybe you need a new faucet. If mold scares you, have it tested and remediated. This doesn't surprise me at all, pretty common. This is what should propel you to do quarterly inspections, so things like this don't get out of control by tenants who don't care and don't tell you. Please tell me you've never been in a house, hotel room, camp shower, or school shower that didn't have a little black stuff growing in the grout. Pretty sure I've even seen it in a hospital.
Loose toilets...buy a wrench...tighten the nuts.....if you're buying investment property you are now a handyman. I keep adjustable wrench in my car....the rest of the plumbing I would fix, seal things up, secure things, connect things. Maybe the seller or their trade will do this for you.
No roof vents? Are there ridge vents, whirly birds, electric fans, solar fans?....nothing?...that surprises me a bit. Either you leave it or get some installed...or get the roofer to come back out and install.
To me none of these are worth terminating over....otherwise you loose your option, inspection, and potentially appraisal money and your time. That's easy $1000-$2000 right there that could fix most of these items....and what is to say you don't find the exact same issues in the next house.
Sorry to be a bit harsh and challenging...but to me there is no perfect house, no house without issues. If you find one that is perfect, something will break sooner or later.
Some of this stuff is like cars.....do you fill up at 1/2 tank 1/4 tank or 1/8 tank or when the red light is on.....Safer to fill up at 1/2, but probably not that many people do that. Do you immediately quit driving when the check engine light comes on, or do you stop the car, call a tow truck and take it to the dealer, or do you drive a week or two or a month and then take it to Shade Tree Tony to just let him turn the light out? Do you change tires for safety 1/2 way thru the life or do you run them to they're bald. Everyone is different, but I would also say even if you buy a brand new home, there are always things that the builder and home inspector disagree on...some things are standard practice and some things are gold standard.
Just figure out what you and your tenants can live with or without and provide them a good safe environment to live.
32 Reply
Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
5y
What's the home worth to you? Talk to a contractor, get an estimate of what it would cost to fix these items and move forward with the purchase, or you cancel and walk away.
Almost everything you mentioned is extremely minor. A home built in the 90's isn't automatically a fire hazard just because it doesn't meet electrical code of 2021. Tiny mold can be removed with a water/bleach solution and a rag in 5 minutes. My office and a vacation rental both had water heaters that were 40 years old and never, ever failed on me. Toilet bolts and water nozzles can be tightened. Roof vents can be installed.
Figure out if you can negotiate repairs so it meets your standard or walk away.
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Shyam Panchal
OP
Investor · Member since 2016 · 36 posts · 16 votes
5y
Originally posted by @Bruce Lynn:
All these issues sound pretty common to me....your home inspector did a great job of what you paid them to do and that is scare you out of buying the house, so you bail, get another one, bail on that one, and they get 3 inspections out of you, before you understand these are homes.
The inspection report is often more of a status report these days, not a repairs list or a retrade tool....but see what you can get.
My thought is probably every home in the neighborhood will have the same issues if they were all built by the same builder.
None of these sound particularly like a deal killer to me. Even if you have to fix some of it, do it and move on.
Not sure what part of Texas, but these days in many areas you should feel lucky just to get the contract. Minor inspection issues are just the price you pay if you want to be an investor and you want to fix these things or you're just buying a house to live in.
ArcFault while a good idea, was likely not code when the house was built and likely not code for existing homes. Plenty of people all over the US and all over the world don't have GFCI and Arc Fault. Certainly adds some safety, but likely not required code to bring this home up to new standards of construction today by even the strictest cities that do rental inspections....even the ArcFault rules have changed over time.
My guess is the neutrals are just need to be split up. Remember an electrician wired this, approved it and city inspector signed off on it. Pretty common find. It is so common I think it must be acceptable in the electric trade.  Is it good idea to split them up, yes, but pretty normal to see this and have home inspectors call it out.
Water heaters...I've seen them last 6-7 years on the cheap ones, and some I've seen last 40 years. Typically I see a lot get replaced about the 8-10 year old mark. Budget for it or buy a home warranty or have the seller buy you a home warranty. I wouldn't bail on a house because the water heater has aged....Just one of those capex you have to budget for. HVAC, Water heaters, roofs....they all have a lifespan.
Did you test for mold? How do you know it is not mildew? If it is mold, is the toxic variety.   I would look at this and fix the problem so it doesn't continue. Something probably leaking. Maybe you need a new faucet. If mold scares you, have it tested and remediated. This doesn't surprise me at all, pretty common. This is what should propel you to do quarterly inspections, so things like this don't get out of control by tenants who don't care and don't tell you. Please tell me you've never been in a house, hotel room, camp shower, or school shower that didn't have a little black stuff growing in the grout. Pretty sure I've even seen it in a hospital.
Loose toilets...buy a wrench...tighten the nuts.....if you're buying investment property you are now a handyman. I keep adjustable wrench in my car....the rest of the plumbing I would fix, seal things up, secure things, connect things. Maybe the seller or their trade will do this for you.
No roof vents? Are there ridge vents, whirly birds, electric fans, solar fans?....nothing?...that surprises me a bit. Either you leave it or get some installed...or get the roofer to come back out and install.
To me none of these are worth terminating over....otherwise you loose your option, inspection, and potentially appraisal money and your time. That's easy $1000-$2000 right there that could fix most of these items....and what is to say you don't find the exact same issues in the next house.
Sorry to be a bit harsh and challenging...but to me there is no perfect house, no house without issues. If you find one that is perfect, something will break sooner or later.
Some of this stuff is like cars.....do you fill up at 1/2 tank 1/4 tank or 1/8 tank or when the red light is on.....Safer to fill up at 1/2, but probably not that many people do that. Do you immediately quit driving when the check engine light comes on, or do you stop the car, call a tow truck and take it to the dealer, or do you drive a week or two or a month and then take it to Shade Tree Tony to just let him turn the light out? Do you change tires for safety 1/2 way thru the life or do you run them to they're bald. Everyone is different, but I would also say even if you buy a brand new home, there are always things that the builder and home inspector disagree on...some things are standard practice and some things are gold standard.
Just figure out what you and your tenants can live with or without and provide them a good safe environment to live.

Hi Bruce, thanks for your input. I am buying this house in Houston and purchasing from a distance (I live in the UK), so the least amount of repairs, the better. I am looking to rent it out immediately but some of these repairs likely will prevent that.
A couple of things here to clarify - I don't believe the flipper used any licensed technicians when renovating the house. The electrics are most certainly not signed off from the city because these items are not up to code. I am more concerned about this being a fire hazard and being compelled to bring this up to code. As far as I am aware, certain older homes may need to be entirely gutted in order to upgrade to AFCI-compliant, which I'd like to avoid.
I have not done a mold test, and suspect it's too late to do that now. The option period is only 4-7 days in this market. I have had this experience before where a small patch of mold turned into a massive problem that required demolishing an entire unit, so certainly want to avoid that.
The roof has no air vents at all which is a big surprise. Most of the other items are minor and don't mind repairing them, but these kinds of items make me question the quality of the remodel.

0 Reply
Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
5y
@Shyam Panchal
1. Arc flash breakers. My house was built in 2008 and doesn't have arc flash breakers. When we finished the basement in 2012, the national electrical code mandated arc flash breakers for the new circuits. None of the houses I own as rentals have arc flash. It is totally safe and doesn't require retroactive update. If you wanted to update them, it is easy to do at the panel board. I work for one of the worlds two biggest arc flash circuit breaker manufacturers, so I fully understand this topic. I would not be concerned about this. This meets code.
2. You are not supposed to install two neutrals in the same busbar, but as long as both wires are tightly secured, there is no safety danger. Maybe you need a new busbar, but often there are open positions to move the wire too. This is not difficult to remedy.
3. Water heater was replaced, in 2009!. I have seen water heaters last 7 years and some last 30 years. In general you can get 15-20 years. Replacement is less than $1000 in most cases. I would not be very concerned with this and I would leave the water heater until it needs to be replaced. If you do ask for a concession, only half the cost at most is reasonable.
4. Mold near sinks or baths is fairly common because they are wet areas. You just need to figure out how the water is feeding the mold. It could be as simple as a bead of caulk on the counter top or you may need a new faucet. If this is a renovation, it is possible the mold is from prior to renovation. In that case just treat it with mold killer and inhibitor. That is less than $10.
5. Loose toilet could be as easy as tightening the bolts, but could be more serious if the floor flange is damaged. Bath water nozzle sounds like an easy fix and water handle in master shower is strange. I would ask the seller to have a plumber come fix all these issues and have the plumber look at the mold by the kitchen sink to determine if there is a leak causing it.
6. Roof vents are a major concern. Without venting, it will cut your roof life in half. It is very strange to have a house built in 1996 without venting, so I would make sure you are not missing something. It is possible there is a ridge vent. That is a cap at the top of the house that looks like ordinary shingles, but the entire top ridge of the roof is actually a vent. It is very discreet and possible the inspector missed it. Roof venting requires two things. Venting on top, but also under the soffit. Air comes in under the soffit and exhausts out the top. I would contact the city to see if permits were pulled for the roof, which they should have been. If the work was permitted, it would have been inspected and venting would have been checked. A city inspector may be willing to stop and look at it. If the work was not permitted, I would tell the seller to pull a permit and have it inspected as a condition of the sale.
6 Reply
Shyam Panchal
OP
Investor · Member since 2016 · 36 posts · 16 votes
5y
Originally posted by @Joe Splitrock:
@Shyam Panchal
1. Arc flash breakers. My house was built in 2008 and doesn't have arc flash breakers. When we finished the basement in 2012, the national electrical code mandated arc flash breakers for the new circuits. None of the houses I own as rentals have arc flash. It is totally safe and doesn't require retroactive update. If you wanted to update them, it is easy to do at the panel board. I work for one of the worlds two biggest arc flash circuit breaker manufacturers, so I fully understand this topic. I would not be concerned about this. This meets code.
2. You are not supposed to install two neutrals in the same busbar, but as long as both wires are tightly secured, there is no safety danger. Maybe you need a new busbar, but often there are open positions to move the wire too. This is not difficult to remedy.
3. Water heater was replaced, in 2009!. I have seen water heaters last 7 years and some last 30 years. In general you can get 15-20 years. Replacement is less than $1000 in most cases. I would not be very concerned with this and I would leave the water heater until it needs to be replaced. If you do ask for a concession, only half the cost at most is reasonable.
4. Mold near sinks or baths is fairly common because they are wet areas. You just need to figure out how the water is feeding the mold. It could be as simple as a bead of caulk on the counter top or you may need a new faucet. If this is a renovation, it is possible the mold is from prior to renovation. In that case just treat it with mold killer and inhibitor. That is less than $10.
5. Loose toilet could be as easy as tightening the bolts, but could be more serious if the floor flange is damaged. Bath water nozzle sounds like an easy fix and water handle in master shower is strange. I would ask the seller to have a plumber come fix all these issues and have the plumber look at the mold by the kitchen sink to determine if there is a leak causing it.
6. Roof vents are a major concern. Without venting, it will cut your roof life in half. It is very strange to have a house built in 1996 without venting, so I would make sure you are not missing something. It is possible there is a ridge vent. That is a cap at the top of the house that looks like ordinary shingles, but the entire top ridge of the roof is actually a vent. It is very discreet and possible the inspector missed it. Roof venting requires two things. Venting on top, but also under the soffit. Air comes in under the soffit and exhausts out the top. I would contact the city to see if permits were pulled for the roof, which they should have been. If the work was permitted, it would have been inspected and venting would have been checked. A city inspector may be willing to stop and look at it. If the work was not permitted, I would tell the seller to pull a permit and have it inspected as a condition of the sale.

Hi Joe, thanks for your response, please see below
1. OK I seem to be getting mixed advice. Inspectors and electricians are telling me the opposite but as long as it is not a safety issue, I could let this slide. I am concerned I would have to repair this after the fact.
2. The busbar is less of a concern, it can be repaired easily. But, I am concerned their contractor has "messed" with some of the wiring considering this does not seem to be standard.
3. To clarify, they replaced the old water heater with a model FROM 2009. They did not replace the water heater in 2009. I would assume this water heater is close to the end of its useful life. This is another red flag that raises questions about the quality of the remodel.
4. I am not certain the house was previously renovated. According to the disclosures, the current owner was not aware of any mold so perhaps this could be a new thing after the installation.
6. The roofing is a big concern because it again raises questions about the quality of the remodeling work.

0 Reply
Darius Ogloza
Investor · Marin County California · Member since 2018 · 1k+ posts · 2k+ votes
5y
In my limited experience, arcfaults trip if you whisper too loud in the house. Damn these things.
3 Reply
Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
5y
Originally posted by @Shyam Panchal:
Originally posted by @Joe Splitrock:
@Shyam Panchal
1. Arc flash breakers. My house was built in 2008 and doesn't have arc flash breakers. When we finished the basement in 2012, the national electrical code mandated arc flash breakers for the new circuits. None of the houses I own as rentals have arc flash. It is totally safe and doesn't require retroactive update. If you wanted to update them, it is easy to do at the panel board. I work for one of the worlds two biggest arc flash circuit breaker manufacturers, so I fully understand this topic. I would not be concerned about this. This meets code.
2. You are not supposed to install two neutrals in the same busbar, but as long as both wires are tightly secured, there is no safety danger. Maybe you need a new busbar, but often there are open positions to move the wire too. This is not difficult to remedy.
3. Water heater was replaced, in 2009!. I have seen water heaters last 7 years and some last 30 years. In general you can get 15-20 years. Replacement is less than $1000 in most cases. I would not be very concerned with this and I would leave the water heater until it needs to be replaced. If you do ask for a concession, only half the cost at most is reasonable.
4. Mold near sinks or baths is fairly common because they are wet areas. You just need to figure out how the water is feeding the mold. It could be as simple as a bead of caulk on the counter top or you may need a new faucet. If this is a renovation, it is possible the mold is from prior to renovation. In that case just treat it with mold killer and inhibitor. That is less than $10.
5. Loose toilet could be as easy as tightening the bolts, but could be more serious if the floor flange is damaged. Bath water nozzle sounds like an easy fix and water handle in master shower is strange. I would ask the seller to have a plumber come fix all these issues and have the plumber look at the mold by the kitchen sink to determine if there is a leak causing it.
6. Roof vents are a major concern. Without venting, it will cut your roof life in half. It is very strange to have a house built in 1996 without venting, so I would make sure you are not missing something. It is possible there is a ridge vent. That is a cap at the top of the house that looks like ordinary shingles, but the entire top ridge of the roof is actually a vent. It is very discreet and possible the inspector missed it. Roof venting requires two things. Venting on top, but also under the soffit. Air comes in under the soffit and exhausts out the top. I would contact the city to see if permits were pulled for the roof, which they should have been. If the work was permitted, it would have been inspected and venting would have been checked. A city inspector may be willing to stop and look at it. If the work was not permitted, I would tell the seller to pull a permit and have it inspected as a condition of the sale.

Hi Joe, thanks for your response, please see below
1. OK I seem to be getting mixed advice. Inspectors and electricians are telling me the opposite but as long as it is not a safety issue, I could let this slide. I am concerned I would have to repair this after the fact.
2. The busbar is less of a concern, it can be repaired easily. But, I am concerned their contractor has "messed" with some of the wiring considering this does not seem to be standard.
3. To clarify, they replaced the old water heater with a model FROM 2009. They did not replace the water heater in 2009. I would assume this water heater is close to the end of its useful life. This is another red flag that raises questions about the quality of the remodel.
4. I am not certain the house was previously renovated. According to the disclosures, the current owner was not aware of any mold so perhaps this could be a new thing after the installation.
6. The roofing is a big concern because it again raises questions about the quality of the remodeling work.

1. New circuits added to the panel board require arc flash breakers. You are not required to retrofit and replace old breakers.
2. They may have added a new circuit. Wire has the date of manufacture marked on it, so look at the jacket and see if they ran new circuits. If they did, then it should be inspected under permit.
3. I agree that is a red flag. Installing a used water heater is not a good practice. It seems they cut corners to save cost. The water heater probably has between 1-10 year left.
4. Just have a plumber look at it. Small mold by the sink is common, just address the water source and treat the spot.
6. I is a big concern, but rely on the permits. If the roof was not done under permit and to code, your insurance company will not cover damage to it. This is potentially the most serious of the issues you found.
1 Reply
Account Closed
Handyman · MN · Member since 2020 · 92 posts · 46 votes
5y
New water heaters last 10-15 years at best. Someone replacing an old with a used would just piss me off as a time waste.
From what I keep hearing on this site: real estate investing is about solving other peoples problems for profit correct? Your counter offer should reflect the price of licensed contractors correcting the repairs, and saving them the problem of losing the sale.
Seller can relist if they want to risk the damage their listing will take due to a failed sale. They could hire the contractors themselves and waste their time on it, or they could try to re-cobble everything and waste their time to end up in the same situation.
I think you have the seller in a good spot, they know they've been caught in their half- assery.
If the bathroom plumbing is shared on the same wall for the kitchen, the loose toilet or loose spout could be feeding the mold issue. Either way find the source. Unless your confident it's been corrected and certain that it will never get hot and humid in Texas...
I would also much rather see you end up with this home and correct these issues for a profit, instead of some first time home owner buying the lipsticked pig unaware of the situation they are about to get stuck with. Exposing their family to the issues and trying to spend their way out of a hole of repairs that they will never get out of.
Best of luck, hope you find a way to make it work!
0 Reply
Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
5y
1) I dont own a single property with AFCI. Building codes change. Properties built before a code was created will obviously not have newly added things to the building code.
2) Not a big deal.
3) You can clearly see the date or serial numbers on these. When it breaks replace it.
4) Every single kitchen and bathroom sink has mold underneath it. Put some bleach on a rag and wipe it clean.
5) So tighten the toilet and nozzle. It will take you 30 seconds.
6) No vents at all? No soffet vents, ridge cents, or side vents? Ask for a repair here. If there are no vents whatsoever, you will get a mold issue in the attic. But, I bet there is at least one of those types of vents. Not all houses have all those types of vents.
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4 Reply
Collin Maas
Member since 2020 · 24 posts · 16 votes
5y
I have some questions on the inspection.
1) I don't believe there is such a thing as an arc flash breaker, there is an arc fault breaker, I'm going to assume that's what he meant. Exactly what needs the AFCI breaker at the panel? is this run to outside, bathroom or kitchen? are there GFCI outlets in those locations? You may be fine.
2) You said this is a single family home. I'm guessing there is only one panel in the house. If so this is main panel and grounds and neutrals can be wired to the same bus bar. I know that's how the panel at my house is done. Sub panel is a different story, I believe. Might be worth a call to a local electrician.
3) Can't offer much advice on that one. I guess be prepared to replace it I'd budget between $1500-$2000. It could go tomorrow or it may last another 10 years
4) Any idea what's causing the mold- what's the moisture source? Poor insulation in the wall at that area causing condensation or possibly a leaky drain or supply connection. Could be a lot of others. It would be good to understand what is happening there to better understand the possible costs.
5) Can the toilet and faucet simply be tightened? There should be blocking behind the shower faucet handle, so that could be a problem. Is it accessible from the wall behind the shower, sometimes there is an access panel?
6) Roofs can be vented in a lot of ways, pod vents, ridge vents or gable vents, can you confirm none of them are in use. Some roofs don't have venting, spray foam is installed in the roof joists and the roof will stay cold without venting. The "no roof vents in attic" isn't enough info to work off of. Adding vents could be a simple fix, and my guess is there maybe some venting there that the inspector didn't catch.
I'd get another opinion on some of those things before terminating. My skepticism of home inspectors is probably showing a bit. Overall I think they provide a really valuable service to buyers that are unfamiliar with the construction process but sometimes those reports come off as a little "doomsday". Could be a great purchase that just needs a couple of issues addressed.
0 Reply
Matt M.
Specialist · Easton, PA · Member since 2018 · 1k+ posts · 2k+ votes
5y
@Shyam Panchal
None of these issues are a biggie at all as others have said. Probably 2-3 days work and you’re good to go.
But… this is exactly why I buy dumps and remodel myself as rentals. Flippers and turnkey people don’t care about the end buyer whatsoever or what happens after closing. Get it done quick and make that $$$$$$$.
1 Reply
Gregory SchwartzBusiness Member
Rental Property Investor · College Station, TX · Member since 2016 · 1k+ posts · 1k+ votes
5y
100% agree with @Bruce Lynn and @Nathan Gesner these things are minor. I use to think that if it wasn't up to code that I'd have to make those repairs. If you do serious rehab that requires a permit you might have to upgrade but if not then your fine leaving it as is in most cases. If you have concerns about these I would always start by directing these questions to your inspector. Most of these guys are willing to teach new investors / homeowners about the issues that need to be addressed.
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2 Reply
Michael Robbins
Property Manager · Henderson, NV · Member since 2018 · 501 posts · 317 votes
5y
@Shyam Panchal I would search if the sellers obtained any permits for the work. For example, here in Las Vegas water heaters are required to have permits. And at the very least ask for copies of invoices on the work. You want to ensure that any work done on the property was performed by licensed electricians, etc...
1 Reply
Shyam Panchal
OP
Investor · Member since 2016 · 36 posts · 16 votes
5y
Originally posted by @Collin Maas:
I have some questions on the inspection.
1) I don't believe there is such a thing as an arc flash breaker, there is an arc fault breaker, I'm going to assume that's what he meant. Exactly what needs the AFCI breaker at the panel? is this run to outside, bathroom or kitchen? are there GFCI outlets in those locations? You may be fine.
2) You said this is a single family home. I'm guessing there is only one panel in the house. If so this is main panel and grounds and neutrals can be wired to the same bus bar. I know that's how the panel at my house is done. Sub panel is a different story, I believe. Might be worth a call to a local electrician.
3) Can't offer much advice on that one. I guess be prepared to replace it I'd budget between $1500-$2000. It could go tomorrow or it may last another 10 years
4) Any idea what's causing the mold- what's the moisture source? Poor insulation in the wall at that area causing condensation or possibly a leaky drain or supply connection. Could be a lot of others. It would be good to understand what is happening there to better understand the possible costs.
5) Can the toilet and faucet simply be tightened? There should be blocking behind the shower faucet handle, so that could be a problem. Is it accessible from the wall behind the shower, sometimes there is an access panel?
6) Roofs can be vented in a lot of ways, pod vents, ridge vents or gable vents, can you confirm none of them are in use. Some roofs don't have venting, spray foam is installed in the roof joists and the roof will stay cold without venting. The "no roof vents in attic" isn't enough info to work off of. Adding vents could be a simple fix, and my guess is there maybe some venting there that the inspector didn't catch.
I'd get another opinion on some of those things before terminating. My skepticism of home inspectors is probably showing a bit. Overall I think they provide a really valuable service to buyers that are unfamiliar with the construction process but sometimes those reports come off as a little "doomsday". Could be a great purchase that just needs a couple of issues addressed.

Hi Collin, see below:
1. Yes, that's what I meant. Arc Fault Breaker. There are GFCI outlets in the house, but AFCI breakers are not in the required areas of the electrical panel.
2. This is the only panel at the house, and grounds and neutrals were wired to the same bus bar.
4. There's no clear indication of what's causing the mold, unfortunately.
5. This is a minor issue and yes they can be tightened, but the bathrooms were "apparently" remodeled in poor fashion.
6.  Unfortunately, there wasn't much detail in the report. The inspector mentioned that the attic was very hot when he went to inspect the property, and without proper ventilation the roof would wear faster.

0 Reply
Shyam Panchal
OP
Investor · Member since 2016 · 36 posts · 16 votes
5y
Originally posted by @Michael Robbins:
@Shyam Panchal I would search if the sellers obtained any permits for the work. For example, here in Las Vegas water heaters are required to have permits. And at the very least ask for copies of invoices on the work. You want to ensure that any work done on the property was performed by licensed electricians, etc...

This one is a bit of a strange one...but Montgomery County, TX, does not have specific zoning codes, so the only time you are required to have permits is when you are either constructing an extension to an existing dwelling or building a new structure. Strangely, roof repairs, remodels, electrics don't require permits..never come across this before.

0 Reply
Collin Maas
Member since 2020 · 24 posts · 16 votes
5y
I'm not an electrician, but I've installed enough that has passes inspections. If you have GFCI and only one panel, I believe you are fine, per Wisconsin code. Texas maybe different Again, quick call to a local electrician might answer some questions for you.
I was in a hot attic yesterday that was properly vented (6 years as commercial roofer installing all types of roof systems). This was Wisconsin, I can only imagine how hot an attic is in Texas. A hot attic is not a sign a roof isn't properly vented, an attic is going to be hot on a hot day. If this is all the inspector gave you to determine there is no venting, I'd have to question the inspectors understanding of roof systems.
2 Reply
Juan Campos
Dallas Tx · Member since 2021 · 112 posts · 31 votes
5y
@Bruce Lynn hell yeah thank you for this, I grew up with a handyman for a father and he always told me, if you have to pay someone to tighten a bolt you're an idiot. I used to remodel , familiar with hvac not an expert, that's my brother.
But you're right in this bidding market I'd be lucky to find that multi family duplex I've been searching for, but when I do, an old lose toilet, some mold and a 12 year old boiler won't scare me, lucky lucky my cousin I'd an electrician working at Lockheed Martin!
And I always have tools in my trunk! So yes thank you Bruce!
1 Reply
Juan Campos
Dallas Tx · Member since 2021 · 112 posts · 31 votes
5y
@Russell Brazil my.man I don't own a single property but I did remodeling and stucko for a year, and that bleach on a rag is the best advice haha so true !
3 Reply
Janina Farr
Investor · Chicago, IL · Member since 2016 · 33 posts · 13 votes
5y
@Shyam Panchal
Hi, these are not major issues to cancel a contract. Ask for a credit of $5,000 to get the electrical replaced because we definitely dont want his contractor doing anything and all the other items are minor. Not necessary to have a mold inspection. It’s near the sink so could be moisture buildup. I would have him check to see what the issue is. Everything else have him fix or ask fir a credit to have it fixed. Water heaters are $500. So not too expensive. If he’s not willing to give credit just make sure you express you want the work done by a licensed contractor.
1 Reply
Monish Lillaney
Rental Property Investor · Medford, MA · Member since 2016 · 37 posts · 7 votes
5y
I wouldnt sour a deal over something so menial, especially in this competitive market. The updates would cost you $2000? And you are not required to be up to date for NEC2020 electrical code changes. In terms of safety, your house is electrically sound. New code says you need a service disconnect outside for firemen. Do you think they'll upgrade the service for you too? If its not structural, its an easy fix
0 Reply
Joanne Tsai
Investor · Millburn, NJ · Member since 2018 · 141 posts · 100 votes
5y
@Shyam Panchal
If you are in UK, are you using a PM for your rental in TX?
You may just ask your PM how many of these items create liability issues down the road. We are also long distance investors and we don’t want to be sued for negligence.
It does seem most of the items are not huge, you can probably ask for some credits and have them addressed through your PM. You’d never find a perfect house and unfortunately with flippers, they try to cut corners here and there.
I’d be more worried if there was major foundation issue and such…..
0 Reply
Luciano A.
Developer · Houston TX · Member since 2018 · 423 posts · 400 votes
5y
@Shyam Panchal
If the home inspector was to not find anything then you would be upset and thought you wasted your money. These items are common on most homes that are not new construction. These items are very minor. I own property here in Houston and I am a builder. Many of my older homes don't have arc breakers unless I update my panel box. Item 2 is also simple to fix.
For the water heater as the seller to credit you $750 or to show proof, they bought new.
Item 4. Did the inspector use a moisture meter to see if there is a leak in that area. If it is there before the flippers got to work then it was just missed by them. (rookie mistake)
Item 5. Not a big deal but sounds like amateur, not professional trades were used.
DM me. I can help look up the address and give you feedback to verify it was done by licensed trades.
In my option, today with HGTV and The University of YOUTUBE many people get into flipping houses thinking it is easy. I have heard too many times from investors who never seen the property and buy from a distance to find they bought a money pit. The finishes look nice but things covered up behind the walls is costly.
Who are your boots on the ground? (Realtors get paid on commission so hopefully you have others)
Best of luck
1 Reply

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