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Breaking BAD . . . Buying a "Meth" House

By
Industry Observer with RETIRED / State License is Inactive Inactive License Oregon

I'm going to respectfully disagree with Michael Marshall's recent post: Make Sure You Don't Buy a Meth House

In a transaction that closed over 3 years ago, the property sold was a "Meth House."  The current owner, at that time, was NOT the BADDIE.  The former, former owners were.

The home was a FSBO, listed in the MLS.  There was nothing stated in the listing write up that indicated the history of the property.  There's also nothing to check off when entering a listing that would require an agent, or owner to disclose these types of things in advance. 

We toured the home, and it was lovely.  ABSOLUTELY LOVELY! 

We toured the home again, and after the second tour my client wanted to put pen to paper and write it up.

It was after acceptance, and during disclosure that the owner brought up the fact that the Sheriff's had once seized the home -- the prior owners had been caught manufacturing meth on the premises.

I gave my client the news, and the appropriate advice of revoking the offer.  However, that house was so clean, and refurbished -- it was exactly what the buyer wanted.  So I investigated some more, and found out that this house was probably in better condition because of it being a "Meth House." 

Everything was yanked out . . . the carpets, the drywall, the cabinets . . . it was all gutted, sanded, scraped, painted, recarpeted and then put back together again.  Anything that was "pourous" was removed, and replaced.  The drywall was yanked, and the studs sealed.   End result . . . a beautiful home, that was totally refurbished and looking good! 

Because of the "stigma" attached to it, we actually were able to get a better deal. 

 

Posted by

 

 

Carla Muss-Jacobs has RETIRED effective May 1, 2018

Representing Buyers in the Portland Metro Real Estate Market | Clackamas Multnomah and Washington Counties | Since 1999

Carla Muss-Jacobs, REALTOR®, ABR, CEBA, ePro
Principal Broker/Owner ~~ INACTIVE

Carla Muss-Jacobs' retirement became effective May 1, 2018

Direct: 503-810-7192 

 

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Comments (17)

Christina ONeal
At Home Real Estate Group - Ripon, CA
Realtor - Ripon California

I love how you respectfully disagreed :)  nice perspective

Dec 12, 2010 08:35 AM
Vickie McCartney
Maverick Realty - Owensboro, KY
Broker, Real Estate Agent Owensboro KY
Hi Carla~ That is something I have never experienced or ever even have had to think about. Thank goodness the seller disclosed it so that your buyer could make an informed decision on whether or not to buy.
Dec 12, 2010 08:35 AM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

Hi Christine . . . I'm amazed that people still continue to take showers, since we all know most accidents occur in the home, and in the bathtub.  ;-)

Hey Vickie -- They had tp disclose it.  I was perturbed to find this out AFTER the offer was accepted, but understood why -- because they really wouldn't get much activity otherwise.  I also informed my client, they will have to disclose when they sell the property, something I mentioned they should consider as well before proceeding to close. 

Dec 12, 2010 08:55 AM
Dawn A Fabiszak
Private Label Realty ( Denver metro area, Colorado - Aurora, CO
The Dawn of a New Real Estate Experience!

Carla ~ we have meth tests here and once the house has been mitigated to state health standards, it does not have to be disclosed as a meth house.  It's such a grey area.

Dec 12, 2010 09:14 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

This is a great post and worth a "Suggestion" and a "Reblog."  People should always investigate the issues and not make a knee jerk reaction.

Dec 12, 2010 10:10 AM
Rodney Mason, VP of Mtg Lending
Guaranteed Rate NMLS# 2611 - Atlanta, GA
AL,AR,AZ,CA,CO,FL,GA,IN,MI,MS,NC,NV,SC,TN,TX,VA,WA

Aslong as the buyers are properly informed, then its up to them to make the decision.  When the buyers do not know about the history, that is where the issue comes in.

Dec 12, 2010 10:28 AM
Eric Michael
Remerica Integrity, Realtors®, Northville, MI - Livonia, MI
Metro Detroit Real Estate Professional 734.564.1519

So you're now a Meth House advocate? lol Just kidding. You did what you should do, let them know what you found out & gave the appropriate advice.

Dec 12, 2010 02:36 PM
Ken Barker Realtor® GRI, E-Pro Certified
Dilbeck Real Estate - Burbank, CA

Carla - I agree with you that as long as it is gutted and cleaned through and through what the heck? Good argument.

Dec 12, 2010 03:52 PM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

Hi Dawn . . . I wish we could expunge the record if it's clean.

Hey Gene -- Thanks for the re-blog!!  All the documentation was there.  The company that did the work was local, and did this type of work exclusively.  The DEQ had to sign off on it, I believe (I'd have to pull my records to be accurate about that.)  Someone gave their blessings . . . maybe it was a Pope?!?  :-)

Hi Rodney . . . yes, disclosure is the key.

Hey Eric -- HA HA HA . . . Also, I learned quite a bit from that deal.  The (then) current owner seemed pleased with her home.  She had lived there over 5 years, and had no health issues or other concerns.

Hi Ken . . . The home was lovely, and a pity to have that history.  I wish we could do they do in Dawn's neck of the woods.

 

 

Dec 12, 2010 04:56 PM
Bob & Leilani Souza
Souza Realty 916.408.5500 - Roseville, CA
Greater Sacramento Area Homes, Land & Investments

Good for you, Carla! Thanks for sharing your experience that could have headed completely in another direction, without an open mind. :)

Leilani

Dec 12, 2010 09:45 PM
Wayne Johnson
Coldwell Banker D'Ann Harper REALTORS® - San Antonio, TX
San Antonio REALTOR, San Antonio Homes For Sale

Carla-Thanks for the perspective. I learn something new every time I check in to ActiveRain.

Dec 13, 2010 12:12 AM
Carra Riley & Declan Kenyon
Brokers Guild Cherry Creek Ltd - Westminster, CO
Helping people Transition at all ages!

Carla ~  Great job in due diligence!

Dec 13, 2010 01:28 AM
Kathryn Maguire
GreatNorfolkHomes.com (757) 560-0881 - Chesapeake, VA
Serving Chesapeake, Norfolk, VA Beach

I wonder how many people are buying Meth homes and have no idea... But to your point, it is risky business when one uses the words "always" or "Never".  It seems that there are "always" exceptions.

Dec 13, 2010 02:02 AM
Greg Nino
RE/MAX Compass - Houston, TX
Houston, Texas

Wow. In Texas our sellers disclosure specifically asks about being used as a prior meth lab. GREAT for you and your buyers!

Dec 13, 2010 06:30 AM
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

Same thing they would do if there was mold/water damage like in a hurricane. In IL the seller has to disclose if it was a meth house as of a few years ago.  Haven't had one yet.  If they do it correctly there is no problem but if they go the cheap route?

Dec 13, 2010 07:48 AM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

Yes, Greg, our disclosure too.  But this was not brought up until AFTER we toured the place twice, and wrote up the offer -- was the point.  They received our offer, accepted it, then disclosed.  I talked to my buyer about revoking. 

Hi Lyn . . . with any remodel or rehab -- if they go the cheap route, the go the cheap route, and we've got to do some due diligence.

Dec 13, 2010 09:44 AM
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

Carla, it is up to the buyer to decide.  It sounds like this was a great home, especially since it had so much rehab work done to it.  I guess buyers should keep an open mind, as well as agents!

Dec 13, 2010 02:00 PM