South of Main Blockwatch

Buyer Beware

Nov 12, 2000

The South of Main as well as the
rest of the Near East Side has many
lovely old homes that need someone
to move in, repair and take good care
of them. These homes were built
when people took pride in their work
and weren't in a hurry; that's why they
have lasted so long despite a lot of
abuse and neglect. Because there
has been a renewed interest in these
old homes, people are thinking of
making a fast dollar and trying to take
advantage of the situation by
following a practice called "property
flipping". It works like this: someone
buys an old home usually at a very
cheap price and makes some
cosmetic changes which generally
involve painting to hide any serious
problems the house might have.
They then turn around and sell it to
some unsuspecting person at a high
price. The person does not find out
about the problems until he or she
has moved in. The new buyer then
has the added expense of making
repairs as well as high mortgage
payments. A Senate investigation
has revealed such practices as
inflated property appraisals and
falsified documents attesting that
homes have been renovated. If you
are interested in buying a home, it is
well worth the investment to hire a
reliable person to inspect the house
before you sign any contract. If you
find serious problems you'll be in a
better position to bargain down the
price and know what repairs you'll
need to do. It's extremely important
to know what you're getting in to.
Once you take ownership, the City
(code enforcement) holds you
responsible for any repairs even
though they were not your fault. If
you've been a victim of this
unscrupulous practice, you might
want to consult an attorney to
determine your rights.