So I came across a house that has a motivated seller. Basically to the point where the person reduced the listing price around 60% and still hasn't been able to get a buyer. So, my question is would you buy a house that has an underground oil tank, that is guaranteed to have a pretty decent ARV? What incentives would you like the seller to give to you to make the sale possible?
For my numbers people:
The house is placed on a main road in a suburban area and its downtown area is going through MAJOR gentrification changes. And it's close to the train station which happens to be 4-8 stops from NYC.
Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes
7y
@Lauren Elise Underground tanks do not bother me as long as I know the cost if any to remove it. Every state has their own rules regarding underground oil tanks and some will pay the cost to remove and remediate. A quick google search for that question and your state will direct you to who to contact.
Investor · Bayside, NY · Member since 2017 · 1k+ posts · 1k+ votes
7y
I bought a business and a SFR with a UST.
In both cases, hired a service to close off the tank, which they have to file papers with the county. In the case of the SFR, it was replaced with a above ground tank.
In both cases, the service has to certify there is no contamination, when done, you are in the clear. Otherwise, remediation is required if there are leaks, contamination cleanup can be expensive, and depends on the extent of the contamination. When certified, the books are closed, and they won't come back anymore to check. This is in Nassau County, NY.
You got to price around. We got quotes, was ready to go with one, then saw someone doing it on the same block as us doing it, got a quote from this contractor, and it was half of the previous quotes, and went with him. We search on the internet, and here's a truck down the street doing it, and somehow we somehow missed it on the internet.
So the risk here is whether there is contamination from the tank or not. Seems the big price cut means maybe it is, or maybe the seller just didn't know what to do. But in my prior research, prior owners are also on the hook even if the property changed hands.
Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
7y
What does the city require to remove it and dispose it? Which government agency(or multiple agencies) is ultimately responsible for permits? If the margin is 280-250 there is not much room. What is the condition of the home? So you need to be more accurate doing the analysis.
What does the city require to remove it and dispose it? Which government agency(or multiple agencies) is ultimately responsible for permits? If the margin is 280-250 there is not much room. What is the condition of the home? So you need to be more accurate doing the analysis.
We did it with the assumption that someday in the future, it will leak, so as a preventative measure have it done and don't have to worry about it. The SFR was built in 1950, the project was done about 10 years ago, say 2010, so it's been in the ground for 60 years. So nobody tap me on the shoulder and require me to remove it.
As to who to file permits, and where, the remediation service takes care of all of it. I done it twice and still don't know who and where. The problem is, if we didn't do it, sold the property, the next owner didn't do anything, every one in the chain of title is on the hook. So if I didn't do it, 10 years later, I'm happily enjoying my retirement, someone can come and say, we found a leak from a tank in a property you sold years ago, and the cleanup is several hundred thousand dollars.