Susan Gaddis's Blog

Chinese Drywall and what it means to home buyers

Susan Gaddis (Keller Williams Gulfside) — Tue, 11 Aug 2009 08:23:03 -0700

Great information - all buyers need to be aware.

Via Bob Pisa -Prestige Properties Naples, FL (Prestige Properties of South Florida, Inc.):

So called "Chinese drywall" issues have been reported in the media all across the country with concerns about health and residential systems such as air conditioning and electrical wiring among others. Drywall is a material that comes in sheets of various sizes and thicknesses that is attached to the studs and ceiling joists to become the interior wall surface which is later plastered over and/or painted.

During the 2003 - 2007 building boom a shortage of drywall occurred in the U.S. which was compounded by major hurricanes (Charlie and Katrina) further increasing demand. This led producers and distributors to seek supply offshore - China. It has been reported that drywall produced in China may have high sulfur content. Sulfur, when combined with water will form an acidic substance and can cause corrosion to metals and possibly health issues also.

It follows that those geographic areas with very high new construction volume during the time period could see a higher incidence of Chinese drywall present such as Florida, Nevada, and Mississippi but not limited to those state. The Consumer Product Safety Commission has received complaints from 19 different states.

Chinese drywall issues, when discovered, are widely reported in the press. Certain large local nationwide builders/developers who build many developments and homes have a higher chance of discovering the use of this material. This is no guarantee that it's limited to these developments, builders/developers, nor is it proof that all homes in these developments were built with Chinese drywall. I am aware of affected homes where these builders/developers taking steps to rectify the problem once discovered.

Many homebuyers that I work with are from out of town, out of state, and out of the U.S. and may not even be aware of the potential issue. However once they hear of it questions, uncertainty, and fear arise. Some even ask for a guarantee that the property has not been built with Chinese drywall.

I work with home inspectors all the time. For homes built between 2003 and 2007 what they will tell you is that 1) they routinely look for "signs" of Chinese drywall (usually the tarnishing of air conditioning coils and other copper such as tubing and wire in the circuit breaker panel, reading the labels on the back of the drywall if accessible, and smell, and 2) there is no way to tell for sure unless you cut out samples (wall and ceiling since often different thickness material is used on each surface) and send the samples to a laboratory for testing. If the test results are negative and since you are only testing a sample, there is still no guarantee that there is no Chinese drywall somewhere in the home.

When you look to purchase a short-sale or foreclosure property, the property is sold "as-is". The burden is exclusively on the buyer to determine the condition of the property, at the buyer's expense, and to decide to make the purchase or not.

If the property is not short-sale or foreclosure it is unlikely that the seller will have intimate knowledge to state categorically that there is no Chinese drywall. The seller will usually state "don't know". Then it's up to the buyer, once again, to perform your due diligence and make your decision. However, if the seller or the listing agent is aware that the property contains Chinese drywall then this fact must be disclosed as is required by Florida statutes and likely similar laws in other states.

That said, according to the multiple listing service (MLS), there have been 1,518 residential properties sold since 1/1/2009 in the area where the property was built in 2003 and later. The actual number is much higher as homes sold by developers during the time period are not in the MLS like my home, built in 2005-2006.

This is a long way around to say it is highly unlikely that you will get a guarantee from anyone and certainly not with a short-sale or foreclosure. Employing a reputable and qualified inspector is important and performing lab testing if you and/or the inspector think it's warranted.

Please visit BobPisa.com

12 MONTH SHORT SALE NIGHTMARE

Susan Gaddis (Keller Williams Gulfside) — Mon, 25 Aug 2008 21:42:21 -0700

I started working with short sales well over a year ago. I have had some success at closing short sales - yes of course they have always cut my commission but if that is what it takes to get the deal done, I unfortunately have agreed.

I have two files that I started working September 2007 - I will not bore you with the details - but everything has been moving forward and just waiting on another BPO. Today I am told that the properties are no longer being considered for a short sale.

Has anybody else ever experienced anything similar to this? I can not tell you the hours that I have put into these files. If I was to close the deal with a 6% commission, I still would be under minimum wage on an hourly basis.

The lender is American Home Mortgage.

I appreciate any feedback.

Signs that we have hit the bottom and on the UPSWING

Susan Gaddis (Keller Williams Gulfside) — Mon, 21 Jul 2008 17:36:31 -0700

I thought you would be interested to know the average price of homes in Florida entered into Point2 Agent over the last 6 months.

In the last 90 days, the average price of listings entered in Florida was $357,178.

In the 3 months before that, the average price was $332,488.

GOOD NEWS - LONG OVERDUE

Susan Gaddis (Keller Williams Gulfside) — Mon, 04 Feb 2008 16:57:17 -0800

FINALLY - LONG OVERDUE GOOD NEWS REGARDING REAL ESTATE 1. Florida is a great place to live and work. According to Enterprise Florida Inc., the Sunshine State has one of the nation's strongest tourism industries; it is fourth in the nation in high-tech jobs; is the third largest exporter of high-tech goods and services; and is ranked as one of the best states in the nation to be an entrepreneur. 2. Orlando-based economist Dr. Hank Fishkind recently said in several media reports he believes that “the worst of the so-called housing crisis has probably been mitigated by the actions of the Fed. Recovery will take a while, but it has begun.” Another economist, Dr. Lawrence Yun, chief economist with the National Association of Realtors, predicts that the Florida housing market will get stronger in 2008 and will be booming again by 2010. 3. And let’s not forget the things that brought people to Florida in the first place, and will continue to attract them – beautiful beaches, fabulous weather and a friendly business climate, with no state income tax. It’s no wonder that Florida’s combination of temperate climate, outstanding recreational amenities and economic opportunity has consistently put us at the top of Harris Poll’s “most desirable places to live” survey.

very impressed so far - 1st time blogging from Clearwater Florida

Susan Gaddis (Keller Williams Gulfside) — Fri, 04 Jan 2008 21:39:33 -0800

This is my first time blogging - I have read so much about it but have not had the time to do my research. I stumble across AR a while back but never blogged. I would appreciate any advice that you may share to someone brand new to blogging.

From the little that I have read so far it appears that it is similar to a chat room but I never spent much time chatting so I may be off course in saying that. I get a feeling that this is a supportive environment.

Looking forward to learning this format and hope to be an asset.

New to Blog

Susan Gaddis (Keller Williams Gulfside) — Fri, 04 Jan 2008 20:45:46 -0800

This is my first attempt to write something in a blog - please excuse my inexperience - not looking to create a bunch of junk