All Forum Posts by: James Mc Ree

My home inspector contract says he is basically just a guy walking through the property looking for issues with no particular expertise (paraphrased).  It goes on to say I should hire a skilled tradesman for evaluation of anything specific to a trade.  He disclaims responsibility for virtually everything.  I don't know if it would hold up in court, but it is his starting point.

In your case, it may also be hard to make the case if you didn't notice a severely sloped floor either.  Large cracks in the basement should also be very visible to a property buyer, unless they were hidden by something.  If hidden, the inspector could claim they were not readily visible.

You might have a stronger case by presenting the multiple issues together.  You will still have to overcome the, "Why did buyer miss these?" question, but it would be a stronger attack against the inspector's competence.  If nothing else, maybe you can get a refund of your inspection fee.

PM me if you want someone good in the area to take a look at the issues and give a real estimate.

Good luck!

It's better to just reference the actual law as the answer is, of course, "It depends."

https://www.whiteandwilliams.com/resources-alerts-Vacant-Property-and-the-Right-of-Redemption-in-Pennsylvania.html

My partner and I purchased 2 properties along the coast in NJ.  Both are tear downs.  I am wondering how I might go about determining and marketing anything of value in them.  I am not looking to put a lot of work into it as it could be more trouble and time than it is worth.  Any advice?

Both properties are victims of hurricane sandy.  NJ requires the properties to be elevated prior to occupancy which is not practical.  They don't appear to be in especially bad shape, but were condemned.  I haven't been in them in-person yet.  I plan to visit this weekend.  My partner is my boots-on-the-ground.

I am thinking there are probably two categories of value: commodities and finished products.  For commodities, I am thinking bulk copper and anything else of value.  Finished products would be cabinets, appliances, mechanicals, fixtures, etc; all subject to having a used but marketable condition.  I should have some pictures available in about a week if that helps (I am sure it does).

My only ideas so far are ads in Craigs List and similar and asking contractors I know for interest.  Then, I thought, BiggerPockets would know...!

It is a big issue, but not necessarily a deal breaker.  Do some due diligence with your local zoning officer to understand how much of the property is buildable and what the elevation requirement is.

Your end buyer will have flood insurance to purchase which will impact your selling price.  Check into what flood insurance will cost for what you plan to build to factor it into your proforma.  You won't pay much of it, but your buyer will be considering it when figuring out how much they can afford.

I am buying 2 in a flood plain in NJ. The FEMA elevation requirement is 11 feet above sea level. NJ adds 3 more feet. The municipality adds another 3 feet. That puts us at 17 feet, but the ground is 14 feet above sea level. We only need to elevate 3 feet. Other properties in the area almost need an elevator to get to the front door. I wouldn't like that at all. You need to consider the impact of the elevation on your end product.

I think anyone arguing the litigation side of this is completely missing the point.  IMHO, a tenant is extremely unlikely to sue over this.  The tenant will just leave when the lease is up if it bothers them that much.  The landlord loses.  If the landlord were to go to court and win, the landlord still loses.

This is all about making a reasonable accommodation.  Parking on the street is reasonable.  Removing the tree is reasonable.  Adding a carport or temporary canopy is reasonable.  All can work, depending on the severity of the nuisance and sensitivity of the tenant and landlord.  The goal is to reduce stress and help preserve the lease relationship.  That is likely worth more than the cost of these mitigations, as in a 5-year tenant versus a 1-year tenant.

This situation is very different than your example of a lake, @Tom Gimer.  The walnut tree is not obviously a hazard or nuisance and could reasonably be construed as to deprive the tenant of partial use of the property for parking.  Parking would be a reasonable use of that space and possibly explicitly marketed as such.  The end result could be a legitimate tenant complaint that they cannot make full use of their tenancy as expected and legal complications or the tenant moves out.  Neither is good for the landlord.

Your lake example is more of a feature.  The lake is probably an obvious feature of the property and likely marketed to the tenant as a benefit of the property.  It may also come with restrictions, such as "No swimming" that could be declared in the lease.  The OP did not mention any such notice about falling walnuts to the tenant in the lease.

I think these discussions are great.  My first reaction was to cut down the tree too.  There are a number of creative approaches here for the OP to consider.  My favorite is the temporary canopy idea from @Matt K.  It is simple, lower cost and temporary such that it can be deployed when nuts are dropped and stored the rest of the year.  Great ideas!

Additional factors:

- Capacity as zoned (6 lots, 1 acre each).  Any approved development plans?

- Encumbrances/impediments on the property such as easements, wetlands/floodplains, steep slopes, etc

Pictures look good, but are a little dark.  Can they be lightened?  I like to see outdoor pictures during a bright sunny day.  The pictures in your listing are on a cloudy day.  You have 1 picture with snow on the ground.  I would replace that with one showing nice, autumn color.  (Thought: Do you want your prospective buyer thinking "cold" or "nice color"?)

Your price appears somewhat high relative to what has sold in the immediate area recently.  I only did a casual look and the neighboring properties might not be an exact match.  You are listed at $350k with a $260k sale next to you with an additional bedroom and a $335k across the street.  You asking price is the highest in your immediate neighborhood, depending on how those neighborhoods are defined.

I am not at all familiar with the area, your house or your neighbors.  Your price could be perfect.  This is just what I see as a casual glance and examination.

2.5% Buyer commission is a little light in my area of PA. I don't know how it compares to your area. You may want to consider incenting buyer agents more to get them interested in the compensation and in working with a FSBO - a box of chocolates if you are a real estate agent. They don't know if you are reasonable and easy to work with or a monster, but might be willing to find out for 3.5% versus 3% with other listings. Just an idea.

Your listing is brand new. It might not generate a lot of calls right away, especially this time of year. You do have 8 saves on Zillow which could mean there are 8 people interested enough in your property to monitor it. Give it time, especially now that you are in the MLS.

It looks like you need to first stabilize your financial situation regardless of your interest in real estate.  Get a paying job again.  You need to focus on basics at this point, not real estate: food, clothing, shelter.  Once those are in place, save your money towards real estate investing if that is what you want to do.

I am in the process of getting a HELOC now for this purpose. The HELOC is a low cost form of financing that is tax deductible to $100k in my case. I get 10 years to draw funds on what is otherwise a 30 year loan amortization. Payments are interest only. I will only pay interest on funds as they are drawn and can pay them back anytime during the loan term.

A potential downside is the rates are variable.  My rate looks like it will be 3.49%, but that will likely rise.  You might want to consider a home equity loan if you think you will want most of the funds at once and use them indefinitely.  The loan rate is a usually little higher, but locked in.