Buying our first house!

[THEWOOD]

Wife and I are attempting to buy another home and move out of the wonderful city of Chicago to the burbs. Offer got accepted last Friday. Had the inspection today and I am ready to walk away if they dont fix some issues. Its incredible how deflated you become when the inspector shows you all the issues with the house you think is perfect. Given we hired probably the toughest inspector in Chicago, his report for the home in question was 110 pages! The major issues I am seeking the seller to fix are:

1. HVAC issues, the upstairs is not getting any heat. During the rehab the contractor ripped out a bunch of air ducts and who knows how he attempted to get the air to the second floor. Whatever he did, is not working. The upstairs was 10-15 degrees cooler than the rest of the house. This is absolute deal breaker if not fixed.
2. So they installed a full bath in the basement, without pulling permits. The bathroom is nowhere near code. They have the plumbing vent exiting through the side of the foundation. Code states all plumbing vents must terminate above the roof. Im mixed on if I would walk away because of this issue.
3. Majority of the electrical outlets are not grounded properly. I would want these all brought up to code.
4. For some reason they didnt install any smoke or CO2 detectors.
5. One of the living room windows has a crack in the glass. Must be replaced.
6. Credit for insulation to be upgraded. The inspector stated we only have about 0-5 inches of insulation in the attic. Also one of the bedrooms has ZERO insulation on one wall. You should see the thermal image of that wall. ICE blue.
7. Replace/Credit for Garage door opener, which doesnt work.

Anyone have thoughts? Am I asking for too much?

 

[Mac]

Wife and I are attempting to buy another home and move out of the wonderful city of Chicago to the burbs. Offer got accepted last Friday. Had the inspection today and I am ready to walk away if they dont fix some issues. Its incredible how deflated you become when the inspector shows you all the issues with the house you think is perfect. Given we hired probably the toughest inspector in Chicago, his report for the home in question was 110 pages! The major issues I am seeking the seller to fix are:

1. HVAC issues, the upstairs is not getting any heat. During the rehab the contractor ripped out a bunch of air ducts and who knows how he attempted to get the air to the second floor. Whatever he did, is not working. The upstairs was 10-15 degrees cooler than the rest of the house. This is absolute deal breaker if not fixed.
2. So they installed a full bath in the basement, without pulling permits. The bathroom is nowhere near code. They have the plumbing vent exiting through the side of the foundation. Code states all plumbing vents must terminate above the roof. Im mixed on if I would walk away because of this issue.
3. Majority of the electrical outlets are not grounded properly. I would want these all brought up to code.
4. For some reason they didnt install any smoke or CO2 detectors.
5. One of the living room windows has a crack in the glass. Must be replaced.
6. Credit for insulation to be upgraded. The inspector stated we only have about 0-5 inches of insulation in the attic. Also one of the bedrooms has ZERO insulation on one wall. You should see the thermal image of that wall. ICE blue.
7. Replace/Credit for Garage door opener, which doesnt work.

Anyone have thoughts? Am I asking for too much?

That HVAC issue is major. The only thing I think you may be asking too much for is #4. You could install those yourself. Other than that, those are all very, VERY, valid issues.

 

[jlb1705]

#1 and #6 are issues I wish we had pressed more when we were negotiating. Our inspection was in the spring, so heating issues may not have been as apparent, but our inspector (while seemingly very tough and thorough) did not utilize any kind of thermal imaging. Fast forward to now... we've already had to have one HVAC issue fixed (blower motor, covered by the home warranty) and our master bedroom isn't getting or holding much heat. All the air that comes out of the registers is cool. At the very least, if it were insulated better that room would be holding in more of the rising heat from the lower level than it is now.

#2 probably would have been enough for me to walk away. Additions and renovations that are visibly not up to code can be money pits. If they cut corners on the stuff you can see, what about the stuff you can't? That would especially bother me with a bathroom. My wife and I walked away from a home that had an addition where no permits were pulled. Our inspector had to move obstructions just to get access to the crawlspace for the addition, and discovered that it was built with insufficient structure, no insulation, no vapor barrier, and on top of a pile of excavated topsoil that was making contact with wood. Believe it or not, we had a hard time walking away from that place, even with a problem that big. Once you start to envision yourself living somewhere, it can be hard to see problems for what they are. It also didn't help that our realtor was pretty much telling us what we wanted to hear to try to close the sale.

 

[Best Buckeye]

you can find a house with a lot less problems and there are a lot of costly unknown in this house.
Run away or adjust your offer to where you feel comfortable.
20,000 to 30,000 less.

 

[Mike80]

Wife and I are attempting to buy another home and move out of the wonderful city of Chicago to the burbs. Offer got accepted last Friday. Had the inspection today and I am ready to walk away if they dont fix some issues. Its incredible how deflated you become when the inspector shows you all the issues with the house you think is perfect. Given we hired probably the toughest inspector in Chicago, his report for the home in question was 110 pages! The major issues I am seeking the seller to fix are:

1. HVAC issues, the upstairs is not getting any heat. During the rehab the contractor ripped out a bunch of air ducts and who knows how he attempted to get the air to the second floor. Whatever he did, is not working. The upstairs was 10-15 degrees cooler than the rest of the house. This is absolute deal breaker if not fixed.
2. So they installed a full bath in the basement, without pulling permits. The bathroom is nowhere near code. They have the plumbing vent exiting through the side of the foundation. Code states all plumbing vents must terminate above the roof. Im mixed on if I would walk away because of this issue.
3. Majority of the electrical outlets are not grounded properly. I would want these all brought up to code.
4. For some reason they didnt install any smoke or CO2 detectors.
5. One of the living room windows has a crack in the glass. Must be replaced.
6. Credit for insulation to be upgraded. The inspector stated we only have about 0-5 inches of insulation in the attic. Also one of the bedrooms has ZERO insulation on one wall. You should see the thermal image of that wall. ICE blue.
7. Replace/Credit for Garage door opener, which doesnt work.

Anyone have thoughts? Am I asking for too much?

I have a thought: RUN

 

[MaxBuck]

I have a thought: RUN

Yep. And fast.

 

[Magua]

It's funny this thread was at the top of the page because the girlfriend and I have been talking about buying a condo or house here in June when our lease is up at our apartment. Right now we have a very nice apartment in Northeast Ohio but I am paying out the ass for it and it's money I will never get back. Now that I have a career job here in Willoughby (just east of Cleveland) and am settling down I really want to stop flushing money down the toilet in overpriced rent and buy my own place. Everything going into this will be fixed solely on my income alone for numerous reasons, but since I am a first time buyer I really don't understand the process all that well. To kick things off, it's my understanding that I should be looking for an agent to help me find what I am looking for, but my question is what are the best ways to find an agent? I've read the best way to find a good agent is word of mouth from people who have recently purchased. By chance - does anyone have any agent referrals for the Northeast Ohio area where I am?

 

[CleveBucks]

At best, you're buying a money pit. At worst, a death trap. Seriously, if those are the problems that were found, how many are not yet apparent? It sounds like the contractor took shortcuts on just about every area of the house. Even if you're okay with certain things not meeting code or passing inspection, think about when you eventually try to sell it. Is the next buyer going to be even more stringent than you?

3 and 4 could be major safety issues. 1 and 6 could lead to a lot of costly repairs down the road. 2 may not cause you any problems, but it'll be a sticking point when you try to sell it. 5 and 7 are likely minor in the grand scheme of things, in that they're easy to fix with no unknown defects.

Wife and I are attempting to buy another home and move out of the wonderful city of Chicago to the burbs. Offer got accepted last Friday. Had the inspection today and I am ready to walk away if they dont fix some issues. Its incredible how deflated you become when the inspector shows you all the issues with the house you think is perfect. Given we hired probably the toughest inspector in Chicago, his report for the home in question was 110 pages! The major issues I am seeking the seller to fix are:

1. HVAC issues, the upstairs is not getting any heat. During the rehab the contractor ripped out a bunch of air ducts and who knows how he attempted to get the air to the second floor. Whatever he did, is not working. The upstairs was 10-15 degrees cooler than the rest of the house. This is absolute deal breaker if not fixed.
2. So they installed a full bath in the basement, without pulling permits. The bathroom is nowhere near code. They have the plumbing vent exiting through the side of the foundation. Code states all plumbing vents must terminate above the roof. Im mixed on if I would walk away because of this issue.
3. Majority of the electrical outlets are not grounded properly. I would want these all brought up to code.
4. For some reason they didnt install any smoke or CO2 detectors.
5. One of the living room windows has a crack in the glass. Must be replaced.
6. Credit for insulation to be upgraded. The inspector stated we only have about 0-5 inches of insulation in the attic. Also one of the bedrooms has ZERO insulation on one wall. You should see the thermal image of that wall. ICE blue.
7. Replace/Credit for Garage door opener, which doesnt work.

Anyone have thoughts? Am I asking for too much?

 

[AKAK]

Wife and I are attempting to buy another home and move out of the wonderful city of Chicago to the burbs. Offer got accepted last Friday. Had the inspection today and I am ready to walk away if they dont fix some issues. Its incredible how deflated you become when the inspector shows you all the issues with the house you think is perfect. Given we hired probably the toughest inspector in Chicago, his report for the home in question was 110 pages! The major issues I am seeking the seller to fix are:

1. HVAC issues, the upstairs is not getting any heat. During the rehab the contractor ripped out a bunch of air ducts and who knows how he attempted to get the air to the second floor. Whatever he did, is not working. The upstairs was 10-15 degrees cooler than the rest of the house. This is absolute deal breaker if not fixed.
2. So they installed a full bath in the basement, without pulling permits. The bathroom is nowhere near code. They have the plumbing vent exiting through the side of the foundation. Code states all plumbing vents must terminate above the roof. Im mixed on if I would walk away because of this issue.
3. Majority of the electrical outlets are not grounded properly. I would want these all brought up to code.
4. For some reason they didnt install any smoke or CO2 detectors.
5. One of the living room windows has a crack in the glass. Must be replaced.
6. Credit for insulation to be upgraded. The inspector stated we only have about 0-5 inches of insulation in the attic. Also one of the bedrooms has ZERO insulation on one wall. You should see the thermal image of that wall. ICE blue.
7. Replace/Credit for Garage door opener, which doesnt work.

Anyone have thoughts? Am I asking for too much?

Well, as to 2. You might not even be able to get that house financed. Even if the appraiser does/has missed it, you know about it and well, if it becomes and issue later you're starting your mortgage off with a breachable issue. That doesn't even get into issues with your homeowners insurance.

 

[BrutuStrength]

It's funny this thread was at the top of the page because the girlfriend and I have been talking about buying a condo or house here in June when our lease is up at our apartment. Right now we have a very nice apartment in Northeast Ohio but I am paying out the ass for it and it's money I will never get back. Now that I have a career job here in Willoughby (just east of Cleveland) and am settling down I really want to stop flushing money down the toilet in overpriced rent and buy my own place. Everything going into this will be fixed solely on my income alone for numerous reasons, but since I am a first time buyer I really don't understand the process all that well. To kick things off, it's my understanding that I should be looking for an agent to help me find what I am looking for, but my question is what are the best ways to find an agent? I've read the best way to find a good agent is word of mouth from people who have recently purchased. By chance - does anyone have any agent referrals for the Northeast Ohio area where I am?

We used Steve Kerestman as our seller last Spring. He helped us to sell our house in Richmond Heights, which has been a pretty bad market. We didn't like how low he wanted us to list it, but he knew the market and we did get a buyer.

He is based out of Willoughby so I would think that he should be a pretty good fit for you.

Having moved from that area recently, I will caution you to be very diligent regarding your purchase. Be sure to pick a place with excellent schools. That can really come back to haunt you in this economy. We had bought our house well before the bubble, had many improvements (I'm talking like $100K with renovations and insurance work), and still sold the house for less than we had bought it in 2002.

I can tell you that you should absolutely not buy a house in Richmond Heights.

Due diligence is your best friend in NE Ohio.

Also, if you don't like the way a realtor is working with you, do not hesitate to find a replacement.

 

[AuTX Buckeye]

My wife and I are in the process of buying our first house as well. I'm very very thankful for our Realtor, who also happens to be our current landlord. She's been in the business for years, its total blunt and honest. We sat down with her told her what we wanted... She said your going to end up in subdivision "x". We went and looked at that subdivision which would be new construction, and said ok but lets look around, she found a buncha houses, but she was right. Price, Schools, square footage was all right. We're bout a month out from our house getting completed and we couldn't be happier with what we're getting and with the work our Realtor has done for us... She told me one time, talking about the mortgage - "If you have to lose the $400 in 'non refundable' mortgage fees because we switch banks because its going to save you 5k +, then I'm going to make you do it".

if anyone is moving to Austin PM me and I'll put you in contact with her.

 

[Brewtus]

Wife and I are attempting to buy another home and move out of the wonderful city of Chicago to the burbs. Offer got accepted last Friday. Had the inspection today and I am ready to walk away if they dont fix some issues. Its incredible how deflated you become when the inspector shows you all the issues with the house you think is perfect. Given we hired probably the toughest inspector in Chicago, his report for the home in question was 110 pages! The major issues I am seeking the seller to fix are:

1. HVAC issues, the upstairs is not getting any heat. During the rehab the contractor ripped out a bunch of air ducts and who knows how he attempted to get the air to the second floor. Whatever he did, is not working. The upstairs was 10-15 degrees cooler than the rest of the house. This is absolute deal breaker if not fixed.
2. So they installed a full bath in the basement, without pulling permits. The bathroom is nowhere near code. They have the plumbing vent exiting through the side of the foundation. Code states all plumbing vents must terminate above the roof. Im mixed on if I would walk away because of this issue.
3. Majority of the electrical outlets are not grounded properly. I would want these all brought up to code.
4. For some reason they didnt install any smoke or CO2 detectors.
5. One of the living room windows has a crack in the glass. Must be replaced.
6. Credit for insulation to be upgraded. The inspector stated we only have about 0-5 inches of insulation in the attic. Also one of the bedrooms has ZERO insulation on one wall. You should see the thermal image of that wall. ICE blue.
7. Replace/Credit for Garage door opener, which doesnt work.

Anyone have thoughts? Am I asking for too much?

I'll throw in a little advice as well. My wife and I sold a 10 year old home a couple of years ago and bought a home in the 'burbs of Chicago that was built in 1890. It sounds like you have an offer on an older home as well. We quickly learned that the standards we applied to a 10 year old home do not transfer over to a 120 year old home. We also had a long list of suggested repairs from our home inspector; everything from electrical upgrades, floor and roof repairs, window replacements, minor structural improvements, etc. After talking through everything with our home inspector we were very disappointed realizing that we would probably have to walk away from the house due to all of his concerns. We absolutely loved the location and the only other options in the immediate area were new tear-downs which would have cost us over $1 million (which was a "bit" out of our price range and too much house for just 2 of us anyway).

So we talked with a general contractor and had him take a look at the house and give us an estimate of what it would cost to fix the issues that were our biggest concern. We then went back to the buyer and after a long, drawn out negotiating process finally agreed on an acceptable credit which lowered the price to a point we were comfortable with (we decided on just getting a credit and not having them do most of the work since we wanted control over the quality of work that was done).

After about 2 years of upgrades and renovations (and over $150k) we finally have the house and location that we've always wanted for a price that is still far less than a tear-down. There are still the many imperfections and "charms" of a 120 year old house, but we have grown to love the character of an old home.

And finally, just a bit of a warning if you plan on renovating an old house: budget a contingency of about 50% higher than what you think it will cost to fix everything. It's amazing what you'll find once you start tearing up floors and walls which will then lead to new issues that have to be addressed.

 

[NewYorkBuck]

I'll chime in here since I've been a housing bear for quite some time. At age 44, I just bought my first house. Why the first time a bit late in the game? Because from 24-34 I was too busy developing my career, and from 34-44 I felt houses were way overvalued. Now, after a lot of air has been let out of the bubble and COF is at all-time lows, I took the plunge. This is the process I went through -

1 - My parents live in the heart of the Marcellus shale belt in NE Pa. Im very bullish on the area economically for obvious reasons, and love the bucolic setting. A very nice diversion from NYC.

2 - About a year ago, I was looking for a building/land up in those parts to establish a nursing home/assisted living. In one of the real estate ads, my mom stumbled on a listing for a 10 bedroom house and showed it to me. It was a 130+ year old Victorian, and it immediately spoke to me when I saw it.

3 - My curiosity got the best of me and I drove the half hour just to take a look at it. As soon as we got there and started driving around it, my fiancee turned to me and said "Oh my God, its like a dream." I felt the same exact way. For as much as I plan stuff in my life, it seems for the very big decisions, as soon as I see it, I know it. My fiancee, my car, and now my house. As soon as I laid eyes on it, I knew that was my house. I have long preached to everyone buying a house - "Never fall in love with it" and "Always be willing to walk away." Well, I was breaking my two cardinal rules in home buying.

4 - Finally getting in touch with the realtor for a tour, it turns out the gent who owns the house was an antique dealer, and pretty much over the last 40 years turned the house into his private museum. Dude had furniture, paintings, and nick-knacks in every corner. At first it was hard to imagine it empty, but the place was as impressive inside as it was outside. I was really in love with it now.

5 - Long story short, seller had it listed for a VERY competitive price, and I placed a very competitive bid - like w/i 10k of the ask. Seller agreed, and sold to me over another gent who offered the ask. Why? Because he absolutely loved the house and all I ever asked about was the history of the place and that was more important to him. (Turns out to have some cool history too - a US Congressman used to live there in early 1900s). I ended up being very good friends w the guy. He helps me w anything house related I have questions about, and even helped me do the leaves and close up this year. Dude is even invited to my wedding in June. Anyway, loan closed in early fall of this year. Locked in a great 30 yr fixed rate to boot.

6 - Yes, house needs a bit of work, but all of the big stuff seems good. The inspector said to me - "This house is 130 years old, trust me, whatever was going to happen to it has happened already." Since buying it, Ive cleaned it out, refinished the first floor hardwood floors (old growth floors are amazing), moved a bunch of furniture in, and closed it for the winter. Next year, I'll be putting a new furnace in and keeping it open - looks like Thanksgiving, Christmas, and NYrs will all be there.

7 - One of the things that excites me most about the house is that it is large enough for both of our families when they visit at one time. One of the things I have noticed about large central family gathering places is that they work best when people have their own spaces/rooms. Well, we now have enough space for just about everyone to have their own bedroom, so no one has to leave Christmas Eve into Christmas morning, and the like. It works for me and my fiancee as well, since what are doing is telling people "This is your room, decorate/paint/furnish it the way you like, w/i this color palette." Both families have been quite excited about it.

Anyway, thanks to all for letting me indulge. Yes, I know its going to be a lot of work maintaining a place like that, but Im actually looking forward to it. I really dont mind doing the work. After waiting 44 years to buy, I really have a place I love and I am proud of, and I just felt like sharing.

 

[Deety]

NYB, I've been following the PA real estate market for a couple of years and I believe I remember seeing that house. If it's the one I think it is, man, is that a handsome building. Congrats!

I am trying to figure out what to buy and where. I want to move my stuff one more time and that's all, but once I venture back into working in the arts, I can expect to move often. I might go with a vacation-area condo that can be easily rented if I am not living there, and also serve as a good place to retire. Although I am very tempted every time I see an old school, church, warehouse, or office building going for cheap - I would love, love, love to use a small bit of it as an apartment and turn the rest into a music school. Actually looked at buying an old nunnery a few months ago, but there were big mold issues. Acquiring a mixed-use building that doesn't need all the remodeling done the first year is within reach, but the upkeep is probably horrendous.

 

[calibuck]

Wood, my advice to you is .... 'depends'. There are some chicken-s*** problems that would not cost much to fix, but some issues that will require some major bucks. First, if the price is 'at market' see how much it would cost you (by the way, your inspector could give you a ballpark number to fix, or give you the name of a contractor who would), and discount the 'fair market price' to fix. If the house has a view of Lake Michigan, the owners won't budge that much. Get a quote to fix, and if you and your wife are 'in love' with it that much, it might be worth your while to bring up to code, assuming you can discount the house to cover the extra costs, and get it fixed for that much.

If the bathroom is done without permits, realtors are not allowed to list as a real bathroom. They will say "bonus room" done without permits, and let you draw your own conclusions (I speak for Cali law, not Illi). If it's a lower price house in a higher priced neighborhood, it might be worth your trouble, especially if it has other benefits (near the El, walk to the golf course, 'filtered view of the lake' etc).

Out here, prices are firming, so maybe true in Chi-town, so check out your options. Everything is negotiable. Point out the seriousness of the issues, but let them know you'r 'willing to work with them'. How many days on the market? If it's looong, then they'll deal. Within a month or two, they'll blow you off.

Hate what you're into, but been there, and some have been beneficial and some not. If you're so-so on the house, and don't see a whole lot of upside in the neighborhood or market, don't waste your time. But if there is, and you do, then give it a whirl. What else you gotta do with snow on the ground? Hit orange golf balls? Good hunting and good luck.


:gobucks3::gobucks4: