# Interested in buying, What questions should I ask?



## tyler_a (Oct 30, 2012)

I'm a first time home considering-to-buyer, and my relative was telling me about a $85k fully furnished bungalo in rural newfoundland. She said the owners were originally going to set it up to rent it out, but they changed their minds for some reason and now they "just want to get rid of it". Also mentioned was the house was flooded at some point and the insurance covered all or most of the damage. Everybody seems to agree that it's a very very low asking price, and I'm thinking if it sounds too good to be true it probably is.

I haven't seen this house or talked to the owners, but I will be going to see it in a couple days. I was just wondering what questions I should be asking them, and what measures I should if I get more interested take to make sure the house isn't some moldy-***-bug-infested-pig-with-lipstick-crap-shack. Apparently it's been "done up" pretty good and looks pretty decent so...who knows what they are trying to hide right?


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## Spudd (Oct 11, 2011)

If you look at it and you're still interested, hire a home inspector to go through it. They should be able to help you determine if it's solid or if it has issues. They can't do things like look behind drywall but the ones I've used have been pretty thorough. It should cost <$300 for the inspection so it's well worth it to avoid buying a lemon.


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## Mall Guy (Sep 14, 2011)

While I don't disagree that you should hire a home inspector, most that I have used lately have been all but useless. Early on, I used a retired building inspector, and a retire civil engineer. Best inspectors I have ever hired! Find out the inspectors background . . . if they took a course or bought a franchise, keep looking. If in doubt, but think it a good deal, go up the latter a little and hire an professional engineer, who can advise if invasive testing is advised (open up some drywall, bring in an electrical inspector, etc) or at the very least, someone who can do thermal imaging (water damage will show up on the scan). Cost you more ~ $1,000. Then again watch a few episodes of Holmes on Homes. Talk to the neighbours, ask who the insurance adjuster and contractor were and follow up on their reputation.


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## Four Pillars (Apr 5, 2009)

Mall Guy said:


> While I don't disagree that you should hire a home inspector, most that I have used lately have been all but useless. Early on, I used a retired building inspector, and a retire civil engineer. Best inspectors I have ever hired! Find out the inspectors background . . . if they took a course or bought a franchise, keep looking. If in doubt, but think it a good deal, go up the latter a little and hire an professional engineer, who can advise if invasive testing is advised (open up some drywall, bring in an electrical inspector, etc) or at the very least, someone who can do thermal imaging (water damage will show up on the scan). Cost you more ~ $1,000. Then again watch a few episodes of Holmes on Homes. Talk to the neighbours, ask who the insurance adjuster and contractor were and follow up on their reputation.


Great advice.

If you have a good contractor you can trust (not sure they exist except for Donald), they are probably as qualified as anyone and can provide rough estimates along the way.


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## donald (Apr 18, 2011)

You said the ''key'' words that make this home not a buy imo-houses was flooded.In normal circumstances i would 1)look @ the area-whats the demographic,is there redevelopment going on,is there sub divisions ect being built near,employment ect ect 2)id price the lot/ land seperate from the house(find out what land is selling for-simple homework and you can figure it out) 3)now price out the home........if the lot is worth 50k,you can work with the house being ''valued'' @ 35k(which could be badly mispriced by the seller)

My guess-the lot and home are probably both not good(esp if the lot is low/drainage ect)could be a oppourtunity...hard to say obviously.....work with a lot of criteria and break everything down(don't rule out the rental aspect either)that is different homework.


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## the-royal-mail (Dec 11, 2009)

It's going to be a money pit. Rural properties, esp those that are not close to cities, tend to move slowly and buyers will choose the best ones they can afford. I think you're somewhat emotional about this. Use common sense. People do not want to "get rid of" properties with a positive cash flow. They only want to get rid of things that are more work and $ than they are worth.

I think there are better investments out there.


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## Woody (Oct 30, 2012)

The best part about rural Newfoundland properties is that there is usually no property tax, plenty of privacy and land, and usually friendly neighbours (but far away enough that if you get an arse you never have to see them). Since their isn't a whole lot of employment in rural areas a lot of high end homes get built by newcomers and then sell for way below the market value they would carry in urban areas since their isn't a high demand. 

That being said unless your retired or have employment already lined up, good luck. Also, there isn't a whole lot of newer homes built to the higher standard that seems to be common in urban areas because of the employment/demand issues, so it may be older. Your also going to have very little options in terms of entertainment, shopping, internet connection (my home town is still on dialup), etc. If your okay with all that just check the place out and make sure its up to snuff.

I'm from small town Newfoundland (a town of 80 people in fact) and I plan on returning when I retire, however if I could be ensured that I'd have employment (and maybe at least a DSL connection ) I'd return now. I personally couldn't give a flying [email protected]$% if the nearest Tim Hortons is an hour away.


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## Xoron (Jun 22, 2010)

I'm from NF too (but have been gone over 10 years now).

Not knowing exactly where the house is located, there is no possible way to evaluate whether it's a bargain or not. In my home town (1500 people), that would be a lot of money for an older house, but on par for a newly built house. 

What types of jobs are within 1/2 hours drive of the house? Bustling mine? Any Manufacturing? Fish plant? Those will all contribute to how much it's worth. Some little town with not much going for it have houses for sale much cheaper (20k-30k), but are essentially worthless unless you're retired.


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## marina628 (Dec 14, 2010)

I am from Newfoundland and do own Property there ,there are many small towns with beautiful homes in $85,000 price tag.Last year there was alot of flooding from one of the big storms so it is possible the home could have been flooded by that freak of nature,Gambo Newfoundland was one of the towns.The royal mail in my small town of 1000 people there are literally 10 buyers for every house for sale as everyone who left home at 17 to work 'up the mainland' now want to come home to retire.Find out the circumstances of the flood and if it is a small town I am sure there are neighbours who will give you details as well.


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## Mall Guy (Sep 14, 2011)

Fort McMurray has been very good for NL, and Westjet, and The Avalon Maul :biggrin: And its' resource based economy is really coming into its own! No one here can really give you anything but general advise, as we don't know what your circumstances are . . .


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## Mall Guy (Sep 14, 2011)

While we have had a good discussion, I wonder what happened to OP ?


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## dvelecka (Oct 18, 2012)

First and foremost, I think you should remember that numbers tell the true story. What are other properties in that area selling for? Is the price realistic to that demographic area? 
Never fall in love with a real estate property – no matter how nice it looks or feels – don’t buy based on emotion because you may find yourself at a bottomless pit in the end with no way up! 
Also, gain perspective. Never believe everything you are told without having the proper facts to back up those claims. Reach our to more than one inspector to evaluate the property. This way you will have more than one opinion.


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