Flipper/Rehabber · Cincinnati, OH · Member since 2022 · 72 posts · 28 votes
Hey guys - i just bought my first house. Turns out the inspector missed the house foundation issue.. the house has a sinking foundation and I don’t wanna pay to fix it. 16.5k quote before leveling floors.. I paid 183k and it appraised for 215! I’m currently doing updates but the sloped floor drives me NUTS. I don’t know if I wanna live here much longer but I don’t wanna pay taxes on my capital gains. I know I could make money on this house if i sold it after updates. Don’t know what to do. Kinda just want to buy another house with 5% down (lender told me I could whenever I want) and offload this one while I can…
Thoughts? Advice?
Thanks!
Oh- I am also a realtor so when I buy a house I take a commission on it and use for downpayment. Also don’t pay to list it. I would only have to pay the buyers agent 3%.
…. He lives in he property. You cannot 1031 owner-occupieds
OP, you are perfectly willing to accept the other repair costs, closing cost, moving cost, 3% agent commission, but somehow you can’t live with any taxes on your profits? Sounds like the tail is wagging the dog here! Just sell the property and pay the taxes. It means you made a profit on an overall bad transaction. Take the win and move on!
Real Estate Agent · Scranton PA · Member since 2019 · 93 posts · 98 votes
4y
@James Robert
Hi James, that's unfortunate that you don't love your house. It should be your sanctuary. Not sure which brokerage you're with, but, as a fellow realtor, you know it gets the most exposure on the MLS. I don't know what you mean by not wanting to pay commissions, but you're willing to pay 3% to the buyers agent. Also, your brokerage should either discount your fee, since you get paid for it anyways, or just don't charge your brokerage at closing. When I buy, I always ask for a reduced price, same amount as my earned commission, and not charge the listing commission. Does that make sense?
I’m not a lawyer but you should look at the contract for the inspection. The contract will tell you if you can hold the inspector liable for the damages. I personally wouldn’t go that route. I would fix it if I could and rent or sell it.
Hey guys - i just bought my first house. Turns out the inspector missed the house foundation issue.. the house has a sinking foundation and I don’t wanna pay to fix it. 16.5k quote before leveling floors.. I paid 183k and it appraised for 215! I’m currently doing updates but the sloped floor drives me NUTS. I don’t know if I wanna live here much longer but I don’t wanna pay taxes on my capital gains. I know I could make money on this house if i sold it after updates. Don’t know what to do. Kinda just want to buy another house with 5% down (lender told me I could whenever I want) and offload this one while I can…
Thoughts? Advice?
Thanks!
Oh- I am also a realtor so when I buy a house I take a commission on it and use for downpayment. Also don’t pay to list it. I would only have to pay the buyers agent 3%.
How many quotes did you get to repair the foundation? If you got only one I recommend getting at least three. You may be surprised to learn it doesn't need 16k in repairs. For example I have a property with a flat roof that suffered hail damage. About 5 roofers quoted me to do the whole roof saying the entire thing was affected. I found someone that specialized in that roof type and material. Turns out the whole thing wasn't affected. They fixed what was. $13k savings.
Dont even entertain selling and not disclosing it. You don't want a bad rap as a realtor for doing that and getting caught later.
WorldWide · Member since 2016 · 1k+ posts · 1k+ votes
4y
yup, shop more quotes. i would also look at the drainage around the house to see what could be causing the issues, like no gutters, gutters routed too closely to the foundation, water collecting around the foundation, etc. easiest option would be just to get rid of it (disclosing all the issues, obv) if you don't want to mess with it. however, if you want to be an investor, it could pay off to get some experience in this area.