Is code violation on a property a good deal or not?

Question

i found a few properties in a nice neighborhood with code violations, there are six(6) of them all side by side so im thinking it must be something major like a structural problem.

so my question is.... are these profitable properties or a major fail?

Any advice or suggestions are greatly appreciated

John Thedford · Answer

It depends on the nature of the code violations. Could they be from overgrown weeds and grass? Could they be from making unpermitted repairs/additions? You need to find out the nature of the violations. The fines could be minimal. If you purchase the properties and fix the issue (such as high weeds) the county may close the case without a fine. In other instances you will be required to bring the property into compliance. You want to find out the nature and cost of fixing the violations before purchasing the property.

Elio L. · Answer

Experienced rehabbers here in South Florida take these properties, fix the violation, then negotiate with the city to mitigate the liens down to much less than face value.

You may be able to resolve the issues and negotiate them yourself. Depends on what the violations are for.

Gary Landon · Answer

As several have suggested, you will need to determine the exact nature of the code violation.Hopefully it is not a structural issue.As a structural engineer I have experience with evaluating structural damage and it can be quite expensive. How old are the buildings and did you see any obvious problems? Few residential buildings will have structural problems especially six in a row as you have described.

Although few houses experience structural problems, when it is a structural problem that needs to be fixed it can be expensive. The problem can range from minor cracking in walls and ceilings to major distress caused by excessive foundation settlement. Also, depending on your location, the structure may have not been designed and constructed according to code requirement for wind or seismic forces. Depending on the problem, the cost to design and repair a structural issue can range from a couple of thousand dollars to over tens of thousands of dollar.I am currently involved with the structural repairs of a large condominium that is going to run in the hundreds of thousands of dollars.

If the code violation does turn out to be structural, you will need to hire a professional structural engineer licensed in you State to come up with a repair design.Most home inspectors are not professional engineers and most building officials will not accept their repair recommendations. The engineer will design a repair to meet code requirements.A licensed contractor will need to construct the repairs designed by the engineer

Don’t let this keep you from evaluating the purchase, unless it is to the point where it is better to tear it down and start over.You will need to consider this cost in your offer as others have stated.

I hope this helps.

Oneil W. · Answer

Thank you everyone for your advise. I will definitely do a thorough research on what the violations are before i don anything else.

Thanks again everyone for all the advises

Joseph Chen · Answer

The violation would affect the value of the property. You should look a distressed property in two ways: What is going to cost you to make repairs and whether there are major building code violations. Code violations is not something you can escape.

Make a separate list of these violations so that you can ascertain their cost as well as make sure they are dealt with if you decide to follow through and buy the property.

The best way to deal with code violations is to have a local building inspector give the property an thorough analysis before you buy so that the requirements are figured into your repair cost.

Arlan Potter · Answer

it should just bring down the price. It will just take research to determine to violation and cost to being up to code.

Is code violation on a property a good deal or not?

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