Ontario Tax Sale Property Forum

Tax Sale Forum => Questions and Answers => Topic started by: JohhnySweet on April 05, 2007, 11:33:51 PM

Title: Past grow house
Post by: JohhnySweet on April 05, 2007, 11:33:51 PM

i'm sure this question has been asked many of times before, but unfortunatly i was not there to see the answer.

I came across a bank sale property that has been identified in the past as a grow house.  The asking price is ruffly half of what the house should be, and could be, sold for.   

though, foresight suggests that the issue that is causing the price to be so little right now may also be an issue in the future when deciding to sell the house in the future - come the appropriate time. 

so, then,,,  how would this type of information, when it comes time to list on the open market, affect the success of the sale?
the area is otherwise respectible, and the house is in great shape.

Title: Re: Past grow house
Post by: Rob on April 06, 2007, 02:56:02 AM

Actually the question has never been asked before on here.

Quote from: JohhnySweet on April 05, 2007, 11:33:51 PM

I came across a bank sale property that has been identified in the past as a grow house.  The asking price is ruffly half of what the house should be, and could be, sold for.   

There may be mold damage or other issues such as burned out wiring.  I don't know a lot about bank sales, but I do know they usually sell for market value.  Even if the house was a grow house before that wouldn't cause the price to drop by such a large amount.  There must be structural damage or the bank has certain insurance that allows them to sell the house at that price and still make a profit.

Title: Re: Past grow house
Post by: JohhnySweet on April 06, 2007, 01:46:10 PM

I've had a personal look around the place and the house is sound.  other than stigma, there seems to be no issue's with it

Title: Re: Past grow house
Post by: Rob on April 06, 2007, 02:20:26 PM

Grab the property then.  But there may still be issues that you are not aware of until you do a full inspection.

Title: Re: Past grow house
Post by: davecourt9 on April 07, 2007, 12:38:25 AM

get a home inspector,you'll want to look for moisture and structural damage.
wiring may also be problematic.

Dave

Title: Re: Past grow house
Post by: JohhnySweet on April 07, 2007, 03:38:31 PM

Do you boys foresee any problems when it comes time to sell the place?

we'll assume that at that point the property is in tip top shape.

Title: Re: Past grow house
Post by: Frank on April 07, 2007, 06:34:18 PM

I don't believe it is the law, yet, but there is a huge onus on the real estate market to disclose this sort of information.  Just like the UFFI status of a house - if it ever had UFFI (and was removed), it still must be disclosed.  Also, I thought that the police were setting up some sort of centralized data base of information for the public so that that information is more readily available. 

I don't believe you will ever get market value for this property - no matter how good a job you do of cleaning it up, so you better get it dirt cheap.  I've seen one go on the market recently, and as far as I am concerned you would be buying the lot - just tear the house down and start all over.

Title: Re: Past grow house
Post by: brooksy on April 09, 2007, 02:11:07 PM

Frank is right on

I looked into buying one but there were issues with the insurance and the lenders about getting some inspections that were quite costly -air quality electrical structure-

The guy who did get ahold of it tore it down so i believe he overpaid for a just a lot

Good luck