THE Flip That Flopped

By
Real Estate Broker/Owner with Homes By Cross, Inc.

Flipper the seller was a licensed contractor. He disclosed there was termite damage but noted he had fixed it and had a piece of paper saying so.

The inspector noted the repairs on the joists and noted some concern about the band sills. His notes and pictures indicated that instead of repairing the sills, it looked like they just veneered the damage with new PT 2x10's.

My turn. I told my clients to get a structural engineer. They agreed and we were lucky to get one out in 4 days. Time was running out.

Sure enough. The band sills for half the house were eaten by termites. Estimated repair cost $15K and the repairs made were just tacking on new 2x10's over the damage, giving 0 support.The House was structurally unsound

The fix was to jack up the entire house, rip out the old eaten band sills, and replace anew with tripled 2x10.

Flipper the seller had been caught ! He questioned the veracity of the engineer and balked on repairs. The Flip that flopped.  The deal crashed and I reminded the Listing agent that he now has a known defect in the house.  Eventually the buyers got back their earnest money.

Termites are a reality here in Charlotte NC. Half measures will never do. My clients found another house and were very thankful they had not tried this on their own. Ah, the value of a good Agent

 

 

 www.HomesByCross.com Your Tool Box for All You Charlotte Real Estate needs

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Rainer
120,567
Brenda Carus
Century 21 Zwygart Real Estate - Monroe, WI

Termites are a reality in our city as well.  I always cringe when I mention termite inspection and the buyer decides not to write it in. 

Feb 25, 2009 08:15 AM #1
Rainmaker
1,132,361
Claude Cross
Homes By Cross, Inc. - Charlotte, NC
Charlotte NC Homes For Sale

Thanks for the comment Brenda, - I NEVER let a buyer forgo a termite inspection...NEVER. Mainly to CMA but also to cover them as well. If they can't afford a termite inspection they can't afford the house.

Feb 25, 2009 08:43 AM #2
Rainer
13,093
David Phelps
The Roofing Company, Inc. - Portsmouth, VA

Claude I have run into a few "qualified contractors" that have done repairs on flips in my area. I also utilize the services of structural engineers from time to time. I love it when someone trys to argue against the engineer's report!

Feb 25, 2009 10:36 AM #3
Rainmaker
1,132,361
Claude Cross
Homes By Cross, Inc. - Charlotte, NC
Charlotte NC Homes For Sale

Dave - spot on. "So Mr. licenced contractor you are a Licenced engineer?"  Kills the conversation

Feb 25, 2009 11:11 AM #4
Rainer
59,868
Nate Rowe
Oakstone Properties, Homes in Richmond VA - Richmond, VA
Realtor, Homes in Richmond VA

They are everywhere.  You really have to treat for them correctly and not just cover them up.  Even then, they can come right back.  It is good that he has to disclose it though, or at least we hope.

Feb 25, 2009 03:01 PM #5
Rainmaker
64,864
Raine Carraway
Lenoir, NC

What is it with contractor flips? I showed a house in a similar situation last year. The owner was actually a contractor & inspector [I don't think he's either anymore]. There were so many obvious problems with the home, but the complimentary home inspection report he provided, done by himself of course, listed none of them. It left a really bad taste in my mouth and made me be sure not to reccomend him to any of my clients.

Feb 26, 2009 03:58 PM #6
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Rainmaker
1,132,361

Claude Cross

Charlotte NC Homes For Sale
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