First home purchase

First home purchase




Many of you know we are in the process of purchasing our first OBX house to be used as a rental. (Btw...NightOwl has been a fantastic resource. Thanks you!) We are doing our due diligence and have found the house has a number of areas that show active water leak. All windows have black water stains and the inspector said there are signs of moister from the top floor to the bottom. He can’t tell how bad unless he removes trim and opens things up. We researched the windows and they are M&W windows and had a class action suit that was settled and closed in 2016. Some say this is common problems in a beach house. We are torn. Not a cheap house but the owner says “As Is” and will not pay for any repairs needed. Are we buying someone else’s problems? Should we walk away or is this really just common issues we shouldn’t be over worried about? There is a half moon window they don’t think was not flashed at all a and probably leaking. Would love any thoughts or opinions. It’s a beautiful house in a nice location, we have fallen in love with it, but I don’t want to buy a money pit. It was on the market for 286 days before we agreed on a price (prior to Covid) and has been under contract since aug.



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RE: First home purchase




Many of you know we are in the process of purchasing our first OBX house to be used as a rental. (Btw...NightOwl has been a fantastic resource. Thanks you!) We are doing our due diligence and have found the house has a number of areas that show active water leak. All windows have black water stains and the inspector said there are signs of moister from the top floor to the bottom. He can’t tell how bad unless he removes trim and opens things up. We researched the windows and they are M&W windows and had a class action suit that was settled and closed in 2016. Some say this is common problems in a beach house. We are torn. Not a cheap house but the owner says “As Is” and will not pay for any repairs needed. Are we buying someone else’s problems? Should we walk away or is this really just common issues we shouldn’t be over worried about? There is a half moon window they don’t think was not flashed at all a and probably leaking. Would love any thoughts or opinions. It’s a beautiful house in a nice location, we have fallen in love with it, but I don’t want to buy a money pit. It was on the market for 286 days before we agreed on a price (prior to Covid) and has been under contract since aug.

Wowed777


Not going on the forum but you need need some advice - Look for a PM from me, I see red flags. When I see "as-is" it sends up red flags that they would mention that.


RE: First home purchase




Going to send you a pm this evening


RE: First home purchase




I agree with Tim.

On the one hand, buying a house is by definition buying someone else’s problems. It’s spending a lot of money once for the privilege of spending more of it ad infinitum. ;)

On the other hand, when a seller says “As-Is” it’s often because they know there are more than just your run-of-the-mill problems that need to be fixed. The house should be priced accordingly.



RE: First home purchase




I would walk away based on the limited information presented. Lots of homes out there.


RE: First home purchase




Pink Floyd said it best. RUN LIKE HELL!!!!


RE: First home purchase




Thank you all. Such a beautiful house. We were so excited, but it sounds like everyone is giving the same advice and we should keep looking. We will be in OBX this weekend for one last inspection, but enough people have said to run and i think we need to listen.

Hope to find the right house some day. Thanks again,

Dave


RE: First home purchase




There is one out there with your name on it. You just have to find it. Be patient. It will all work out for the best.




RE: First home purchase




Many of you know we are in the process of purchasing our first OBX house to be used as a rental. (Btw...NightOwl has been a fantastic resource. Thanks you!) We are doing our due diligence and have found the house has a number of areas that show active water leak. All windows have black water stains and the inspector said there are signs of moister from the top floor to the bottom. He can’t tell how bad unless he removes trim and opens things up. We researched the windows and they are M&W windows and had a class action suit that was settled and closed in 2016. Some say this is common problems in a beach house. We are torn. Not a cheap house but the owner says “As Is” and will not pay for any repairs needed. Are we buying someone else’s problems? Should we walk away or is this really just common issues we shouldn’t be over worried about? There is a half moon window they don’t think was not flashed at all a and probably leaking. Would love any thoughts or opinions. It’s a beautiful house in a nice location, we have fallen in love with it, but I don’t want to buy a money pit. It was on the market for 286 days before we agreed on a price (prior to Covid) and has been under contract since aug.

Wowed777


I bought a place in Corova last year as a rental investment. In my opinion if your getting into a home as a business then you better get handy and learn how to replace a window, sweat pipes (or shark bite) and do thngs like lay tile or repair drywall. Most of these tasks are far easier than they seem and once you realize just how much money your'e payin contractors to perform simple tasks that you were always told required a professional to be "done right" you'll start looking at homes with these types of problems as gold mines. Of course everything depends on the price you are paying. Cosmetic problems are usually easier to negotiate than hidden issues however.


RE: First home purchase




There is one out there with your name on it. You just have to find it. Be patient. It will all work out for the best.

JimmyZ


This is true. I tell buyers that when you see the "one" it is like someone flipped a switch and you know. It is a fun emotion to watch knowing you helped. That is one fun part of the business.


RE: First home purchase




If you have signed a contract how are you going to break the deal. Did you have some kind of contingency clause?


RE: First home purchase




If you have signed a contract how are you going to break the deal. Did you have some kind of contingency clause?

Carolina Calm


In NC if the buyer decides, before the end of the due diligence period, not to move forward with the purchase of the home, they can walk away for any or no reason and lose only their due diligence fee. If the buyer ultimately decides to buy the home, the due diligence fee gets credited towards the purchase price.


RE: First home purchase




My experience has been I don't want the owner to make needed repairs found during the home inspection. You can't rely on if the repairs are done properly. I will want the contract price reduced so I can make the repairs.

In your situation if you have hidden mold remediation of the mold could be a problem you don't want to tackle.


RE: First home purchase




If you have signed a contract how are you going to break the deal. Did you have some kind of contingency clause?

Carolina Calm


Every contract these days has a Due Diligence clause that allows the buyer any reason what so ever to back out and get all deposits back - in a certain time period. It is like the old inspection period but now you can back out for any reason. This causes problems with sellers as you can imagine. It's not worth gong through here about how it works, but I can suggest anyone gets an experienced agent to guide them through it. But yes - a buyer can walk away for any reason and for 45 days, sometimes longer.


RE: First home purchase




If you have signed a contract how are you going to break the deal. Did you have some kind of contingency clause?

Carolina Calm


In NC if the buyer decides, before the end of the due diligence period, not to move forward with the purchase of the home, they can walk away for any or no reason and lose only their due diligence fee. If the buyer ultimately decides to buy the home, the due diligence fee gets credited towards the purchase price.

HopSkipandJump


True - but in the last 5-7 years I have seen due diligence money offered maybe 3-4 times out of hundreds of offers. They don't pay it here, it is very uncommon to see due diligence money offered. You will see earnest money but they get that back if they bail out in the due diligence period.



RE: First home purchase




I think it depends on how you feel about the house,the location and the price. We are also in the process of buying a house. We found one at a great price, very close to the beach. Much closer than we ever thought we could get. It's tiny that is part of the price but We have found out since under contract it has a lot of things that are up to be replaced soon. (HVAC, roof) Kitchen could stand to be remodeled. BUT we are willing to take it on because we know normally a house this close to the beach would be well out of our budget and the smaller homes to buy for yourself (and not a rental cash maker) are few and far between as most are being taken down for big ones. So that is my reasoning for continuing to buy a house that needs work. For us its all location! So I'm going to say if you love it it may be worth it.


RE: First home purchase




I think it depends on how you feel about the house,the location and the price. We are also in the process of buying a house. We found one at a great price, very close to the beach. Much closer than we ever thought we could get. It's tiny that is part of the price but We have found out since under contract it has a lot of things that are up to be replaced soon. (HVAC, roof) Kitchen could stand to be remodeled. BUT we are willing to take it on because we know normally a house this close to the beach would be well out of our budget and the smaller homes to buy for yourself (and not a rental cash maker) are few and far between as most are being taken down for big ones. So that is my reasoning for continuing to buy a house that needs work. For us its all location! So I'm going to say if you love it it may be worth it.

groovygirl222


If it was just cabinets and carpet etc, this would be an easy decision. We are aware of those issues and had plans to address them and make this our dream house. The bigger issue is water penetration from poor construction and having a much larger issue such as having to remove all decking and siding to fix wood rot. We dont know how bad it is in the walls and if it’s been leaking for 15 years it could be significant Some


RE: First home purchase




First and foremost....I want to thank all the people that have reached out and provided guidance. Your insight and advice have been invaluable. We have a last inspection this weekend and hope to get a little more information. Right now it doesn’t sound good for this dream house and we will probably have to walk away, but I’m still hopeful. I will let you all know next week. Thank you again!!!


RE: First home purchase




Be present with your Realtor for the house inspection. First of all, you get to see what all is involved and what is not possible with furniture and other items in the house. Let the inspector do their job but listen to what they have to say as they are doing it. We certainly got several suggestions to be considered that would not have posed a serious concern to prevent purchase.

We had a great person do the inspection who liked to talk about his work and what/why he did things during the inspection. His perspective on what's normal for the age of a house in a beach environment was very helpful in making our decision.




RE: First home purchase




He has already had it inspected. It has not been well cared for and might have some flaws from when built. Looking at the reports and pictures I would move on to something else or realize it will be project after project as you get to them all. Siding, windows, flashing, etc. That house needs to go lower to give a new buyer the incentive to do the repairs needed, then what will it be worth is the question. Not being on Duck road would also not be a bad idea.


RE: First home purchase




Many of you know we are in the process of purchasing our first OBX house to be used as a rental. (Btw...NightOwl has been a fantastic resource. Thanks you!) We are doing our due diligence and have found the house has a number of areas that show active water leak. All windows have black water stains and the inspector said there are signs of moister from the top floor to the bottom. He can’t tell how bad unless he removes trim and opens things up. We researched the windows and they are M&W windows and had a class action suit that was settled and closed in 2016. Some say this is common problems in a beach house. We are torn. Not a cheap house but the owner says “As Is” and will not pay for any repairs needed. Are we buying someone else’s problems? Should we walk away or is this really just common issues we shouldn’t be over worried about? There is a half moon window they don’t think was not flashed at all a and probably leaking. Would love any thoughts or opinions. It’s a beautiful house in a nice location, we have fallen in love with it, but I don’t want to buy a money pit. It was on the market for 286 days before we agreed on a price (prior to Covid) and has been under contract since aug.

Wowed777


That long on the market, 'as-is', water stains, etc...
Sounds like a "TEAR DOWN"



RE: First home purchase






That long on the market, 'as-is', water stains, etc...
Sounds like a "TEAR DOWN"

Whaler9818


It is way far from a tear down, but it would need $70-95K to put it back in shape - and you never know how much more until you start.


RE: First home purchase




I think it depends on how you feel about the house,the location and the price. We are also in the process of buying a house. We found one at a great price, very close to the beach. Much closer than we ever thought we could get. It's tiny that is part of the price but We have found out since under contract it has a lot of things that are up to be replaced soon. (HVAC, roof) Kitchen could stand to be remodeled. BUT we are willing to take it on because we know normally a house this close to the beach would be well out of our budget... So I'm going to say if you love it it may be worth it.

groovygirl222

Like this poster, we bought an ocean front "fixer upper" that needed sand fencing, new HVAC, new electrical box to connect to Dominion power box, new hot water heater, deck work, new windows on second level, had octagonal window that leaked, kitchen remodel, septic had not been pumped in decades, and more! Had been for sale for 2 years, owner was only going to put minimal investment in the property, and was NOT going to pay for repairs.
The dh and I wanted ocean front and made a reasonable offer, not asking for any repairs from owner. We went in eyes wide open. even with all this, owner did not sell "as-is", all the things were disclosed. We love our house, even after all the costs of above items.


RE: First home purchase




Lots of good advice here! Another thing to add to your list for any house you are considering...ask for proof of septic inspection and maintenance records.

We had to walk away from a house we fell in love with although it had issues that we were willing to take on. We got out of the contract when we realized that a Nor'Easter or hurricane would put our stress level off the chart (this house was much closer to the beach than the one we ended up buying, before beach nourishment).

If you walk away and then start sleeping better and feel a sense of relief, you'll know you made the right choice.

Good luck!


RE: First home purchase




There is one out there with your name on it. You just have to find it. Be patient. It will all work out for the best.

JimmyZ


This right here! Good advice




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