All Forum Posts by: Tom Fidrych

I agree with scott. Have another plumber run a camera to verify the work was completed and the issue has been solved. Hopefully they can run the camera all the way to the street to verify no additional debris is in the line. If it all checks out, you agreed to the price so will be obligated to pay.

I situations like this, often plumbing companies bid higher than time and materials. For instance, last year I had a 40' section of Orangeberg sewer line that needed to be replaced under the driveway. The bids were in the 10-12K range. I did the job for $1,500 in 2 days and that included the price of a tractor guy, concrete saw company, permit, and driveway repair. Just sayin. 

Are you using a title company for this transaction?

Maybe they cut the pipe to drain the system-part of the weatherization process. 

I don't think that will fly legally. What if they actually do get Covid and spend 3 months in the ICU. 

Where I live in California, it is not uncommon for homes to have unpermitted additions. This is primarily due to the slow and cumbersome permit process and high permit fees. During the 2006 bubble, appraisers used the actual SF to come up with a value. When the bubble burst, it wasn't uncommon for foreclosed home owners to have the unpermitted work red tagged to stick it to the bank. Thereafter, appraisers would only use the SF recognized by the county appraiser. When I refinanced my home, the loan officer confirmed this change and said they wouldn't lend on homes with too much unpermitted square footage and would use the county appraisers SF value.

Last week I was at a party and a guy says he bought a 1225 SF place for $700K and only 625 SF is permitted but the other 600SF was unpermitted and that the appraiser used all 1,225 SF to come up with the value. I double checked this at the county and sure enough were back to using actual SF for the value. I estimate it would cost over $200,000 to permit and bring to code this additional square footage so it's a big risk for him and the lender to take on.

Case 2: An agent acting as wholesaler bought a house in the neighborhood. He cleaned it up and listed it as 1,900 SF;however, only 925 SF is recognized by the county. There is no language in the MLS listing that references bonus square footage or the like. I've got to say it pees me off to some degree because I'm considering list my place next spring and spent about a year and a half getting the 500 SF home addition permitted not to mention $12,000 in permit fees and feel the sale of that place will reduce the comps to some degree.

Question: Have you agents or buyers noticed this shift in your area? Does this imply a break down in underwriting standards?

Had a similar experience . Puller a permit for a sewer line replacement and the sewer inspector checked the permit history of the house. The seller had added a bedroom but only gotten the foundation part of the permit. Thus I was red-tagged and had to get the additional permits and do some electrical upgrades to bring it to code.

If your state has seller disclosure requirements, you may be able to go after them for the unpermitted work if they failed to disclose it.

In my case, the sales contract had a disclosure section with one line asking if any unpermitted work was performed. The seller never checked any of the boxes. So I was asleep at the wheel on my DD. Talked to a realistic lawyer. He asked what it will cost to finish the permit process, I state about $1,500. He says it will cost more to litigate so just do the work and move on which is what I did. In your case, you may not be able to remediate the issues at any cost so litigation may be a realistic option.

"What should I offer on a house? 50% of listing price? 75%?"

Given that most real estate is selling for over list price, it's easy to see why your not getting called by the listing agents. 

A good agent adds more to your purchase then sourcing the deal. They can help identify good neighborhoods from bad, identify potential problems the property may have(such as neighborhoods that may have subsidence issues), identify improving areas, and have a list of competent contractors and inspectors.

When I was purchasing out of state properties, the agent I worked with would often talk me out of properties based upon such things as proximity to soup kitchen. He also had inspectors that were great at identifying a host of issues to chip the property price down.

I'm in the process of selling a home. The buyers had a contingency of closing on their place first, using the proceeds for 15% down with 85% coming from a Fannie loan. Their home just closed and they are renting their house from the buyer for the next month. We were to close on June 4th but because the sale of their place paid off a Fannie loan that was in forbearance, Fannie now requires there be a 30 day waiting period  before a new Fannie loan is issued. We extended the closing date to July 1st and had the buyer surrender the $2k in earnest money in the event the deal doesn't close.
The buyers agent is asking that they be allowed to move their items into the house on June 28(but not occupy it), 3 days before closing, to help them with the move. They are an older couple and will need 3 days to move.
So they have possession of 15% from the sale of their place, are approved for the loan and seem excited to move in but I'm reluctant to allow their items to be placed inside before closing. If I allow them, should I ask for an increase in the earnest money.

It's doubtful he ever did a credit or criminal check on the tenants given the lack of lease. If he is collecting cash payments with no lease, it's likely he's renting to the first convict or drug dealer with cash in hand. I doubt his bank statements will tell you much.