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My mom passed away, need help trying to acquire the house

Discussion in 'Real Estate & Other Investments' started by 33percent, Sep 29, 2016.



  1. ErrosionOfAccord

    ErrosionOfAccord #1 Global Warmer Gold Chaser Site Supporter ++

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    I think I'd go with laminate in the basement. As you remodel a consideration should be made about the rest of the neighborhood. Going granite and chandeliers might help the place sell but you'll probably not get out of such niceties what you put in if the other houses are in bad repair.
     
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  2. ttazzman

    ttazzman Midas Member Midas Member Site Supporter

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    unless your basement is bone dry...no wood products even then i would make sure to get a moisture barrier down first...for spaces like that i like the heavy vinyl planks in a snap lock floating system for many reasons

    you might consider acid stained concrete as a option depending on how you plan on using it
     
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  3. gringott

    gringott Killed then Resurrected Midas Member Site Supporter

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    Read a story a while ago [about 10 years] on actual return on home improvements. I am unable to find the article, but it was a shocker as the theme was how much you lose when you do it, meaning ROI - everything was a loss. The only way it made sense if you do it and enjoy the home with the improvements. The RE people always want to talk about how much more you sell the house for, but don't want to discuss the LOSS financially as in ROI.

    I did find a current article that did try to address this, here are some examples:
    a full-gut kitchen renovation averages a 75 percent return rate (i.e., average cost: $30,000; resale value/ROI: $22,500)
    Hmmm. Maybe those granite countertops sold the house faster, but it cost the seller a pretty penny ($7,800).

    A full bathroom renovation will set you back, on average $12,000, and the resale value can average around $10,440 or 87 percent.
    Again, a loss. I remember Reader's Digest stated the bathroom was the room you lost the least money on.

    Same webpage, different article. Kitchens
    Many homeowners consider a major kitchen remodel at some point. It can be so tempting to entirely retrofit your kitchen in hopes of garnering a higher selling price sometime down the line. However, a major kitchen remodel is expensive (the national average is nearly $60,000). More importantly, according to Zillow Talk, it only yields around a $0.50 return for every $1.00 spent, which is one of the lowest numbers on this list for such a high financial output. Minor kitchen updates, on the other hand, can be worth your time and money. You can make kitchen updates, but if you’re planning on selling in the next couple of years, you may want to leave the full-scale remodel to the new owners. If you’re renovating for yourself, remodel the aspects of your kitchen that you use the most and maybe think about skipping those extras.

    50% loss on major kitchen remodel. Wow. National average cost nearly $60,000, meaning a loss of almost $30,000. Double wow.

    Basement finished.
    A report in the book Zillow Talk estimates that a basement renovation returns only $0.48 per every $1.00 spent.

    Geez, if you don't need the living space, leave it a basement.

    Additions
    A space for the kids, a house for the in-laws, more room for you hobbies, there are many reasons homeowners consider adding an addition. Beware, though, if you are looking for a big return, even for small houses, additions to the footprint of the house are almost never worth it. Take a look at these numbers: A bathroom addition had the lowest return on the list at just 56.2 percent; deck additions were a higher return, between 64-75 percent; family room additions held at 67.9 percent return, whereas a master suite addition was at 64.1 percent; a full second-story addition offers a return of 69.3 percent. Considering these are the most expensive projects on the list—in the thousands and hundreds-of-thousands of dollars—make sure you want an addition, and don’t necessarily count on seeing a return.

    They are ALL losers.

    It is pretty obvious to me that unless you are doing major improvements for yourself and not resale that's fine. If you think you are going to make a buck the numbers prove it wrong. I know a few smart people that have flipped houses, they fix the cheap stuff and clean it up. Major work means a loss at sale. That's the reality.
     
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  4. ttazzman

    ttazzman Midas Member Midas Member Site Supporter

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    gringott..........i am assuming the stats are based on retail contractor prices.....i would hope if a person used their own labor and bought their own materials with no markup the returns would be more reasonable....but the point of ROI is certainly valid i often get requests from friends n family on these things and tell them its just cheaper to sell and buy a house with what they want
     
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  5. 33percent

    33percent Seeker

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    I don't plan on selling the property but turn into a rental down the road, I only would care about the value on the house if I can leverage it for other investments. As for other improvements in the house which I want to do to charge more in rent. I have ran into some issues with the insurance company, the adjuster is trying to put off the cost for asbestos on the bio hazard clean up company charging them a $23k. Which they think is over priced, but it is bio hazard not like a fire or water damage but bio. It's like they took damaged parts off of a car, then telling its good to drive again. The kitchen vinyl has asbestos in the house, it is right next to the living room where my mom passed away. You can still see bio on the floor where the fruit flys flew around at, dropping bio liquid. I got a other rough estimate of taking $2k or so to remove it which aint that bad for removing asbestos. I also brought up to the adjuster that I want to claim "Loss of Use" on the property forcing me to live at my grandparents house. His argument was because the insurance was in my moms name, not any of her kids I can't really claim that which I find absurd. Yet the fact I'm the executor of the estate and paying the deductible.
     
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  6. Usury

    Usury Gold Chaser Platinum Bling

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    Generally speaking insurance is worthless. Get what you can and going forward pay the least you can for the highest deductible coverage. Never plan on filing a claim unless the place burns to the ground or a storm levels it completely.
     
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  7. TAEZZAR

    TAEZZAR LADY JUSTICE ISNT BLIND, SHES JUST AFRAID TO WATCH Midas Member Site Supporter

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    gringott, would you like a testimonial on that ?

    We bought a place with a beautiful property with a shit hole house.
    I needed a project.
    The roof was sagging, so my neighbor & I replaced the roof & topped with a metal roof.

    Then the master bath was really bad, so we took it apart & rebuilt it.
    Then the kitchen needed to be replaced, I contracted that out.
    this is the short list.
    Enclosed & dry walled the garage
    Built a barn
    I also built an 800 sq. ft. home for my mom to spend her final 10 years in comfort.
    So about $250K later, I would guess we raised the property value by $75/100K

    NOW we have a home that we are happy to die in, but not for a while !!
    4 AUG 05  3 (Small).jpg

    CONSTRUCTION  20 JUL 05 005 (Small).jpg

    3RD & FINAL ROOF  FIASCO 008 (Small).jpg

    EVEN MORE. 2 JPG.JPG

    EVEN MORE.JPG

    ON THE MEND (Small).JPG

    2010  FEB 1  SINK INSTALL 005.jpg

    IMG_6023 (Medium).JPG
     

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  8. enricopallazzo

    enricopallazzo Silver Member Silver Miner

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    Why should the sister be cut out? I believe she's entitled to 50%.
     
  9. ErrosionOfAccord

    ErrosionOfAccord #1 Global Warmer Gold Chaser Site Supporter ++

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    She didn't want to deal with the risk and money involved. I don't blame her.
     
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  10. gringott

    gringott Killed then Resurrected Midas Member Site Supporter

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    Great story! Thank you for sharing. I don't like the facts, but the bottom line is [to me] sinking work and money into a home for you & your family is a personal decision. There is more than time - labor - money involved. You get what you want hopefully in the end. My only reason for the post was to point out the facts about "home improvement" and ROI etc.
     
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  11. 33percent

    33percent Seeker

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    She was entitled to 50% but she wouldn't get anything out of it because there is nothing left in the estate. She wasn't paying the bills nor could she afford to, if it wasn't for me this house would be foreclosure by now. She benefited by signing the quit claim to me so she wouldn't worry about the risk or bills. The house has bio-hazard in it, so the house wouldn't even sell for $50k which is owed on the house but values around 95k. The property needs alot of fixes besides the bio hazard clean up.

    I need some serious advice what to do now. The insurance company is trying to not pay for the asbestos removal nor repairing the cost of the flooring/painting. It's getting bad that bio hazard company is telling the adjuster of a bad faith claim is what he is doing. I'm debating to get a lawyer involved, because I feel I'm getting shafted of work not being completed on the claim.
     
  12. Usury

    Usury Gold Chaser Platinum Bling

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    How is asbestos a claim? The insurance company didn't build the house with it. It was there when they insured it, so why do you think they should pay anything now that it's been "uncovered"? Was it disclosed to them prior to taking out the policy?

    Welcome to the risks of real estate investing. You should've gotten an inspection to know what you were buying.

    Also sounds like the paint and flooring were old and needed replacing anyway...so why should that be covered? You can't insure routine maintenance and wear and tear.

    It's claims like this that keep making MY insurance premiums increase 10-20% per year and it's complete bullshit.

    To be quite frank I'm shocked that they even paid ANYTHING for cleanup. They didn't kill anyone and certainly death of the owner isn't a covered peril (unless they also underwrote her life insurance policy).
     
    Last edited: May 9, 2017
  13. Usury

    Usury Gold Chaser Platinum Bling

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    My advice is to play hardball negotiating with the "cleanup" contractor. They're making bank on your job is my guess, so let them know the insurance gravy train drying up and you need them to finish the job for what they're getting.
     
  14. Scorpio

    Scorpio Скорпион Founding Member Board Elder Site Mgr Site Supporter ++

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    JMO,

    the loss of use won't apply. You were not using it prior, so you have not been put out by the event.

    Usury can be absolutely correct re asbestos. The insurance companies responsibility is to put it back to what is was. Which means, they do not have to redo the whole house unless the whole place was trashed by the event and after.

    In addition, asbestos does not have to be remediated if it is not disturbed. The only disturbance the insurance company is liable for is the area relating to the event. You might be able to talk them into sealing the rest, but I don't see them paying to remove it all.

    The way to start it is to get the insurance policy, the full policy, then go thru it line by line, paying particular attention to the exclusions. You might be able to drive a wedge in between the policy limits and the exclusions. Careful though, their words have meanings.

    Forget all of the bs costs and this guy and that guy. Start over. Remembering the house was in x condition prior to event.

    Then make a list of what has to happen to bring it back to the condition it was in. That is your jump point and your only real point with them. From that list, you may be able to get some adjacent work done on a negotiated basis with the company.

    The company will be willing to go to the wall with it and tie the whole thing up for years. Time is of no importance to them once it reaches a certain point wherein they cannot put it to bed rapidly.

    If you do that, ie go after them, time will stretch out, you will be funding all repairs, covering all expenses, etc. Then you will also be out legal fees and all the above until it eventually settles. It will never see a judge as they will drag it out long enough for you to eventually cave after they chase you thru multiple levels of attempts to settle the dispute and arbitration.
     
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  15. 33percent

    33percent Seeker

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    I didn't invest, I inherited this property of my mother passing away and she decomposed in the house. Now I am going to get a house inspection since the vinyl still has bio stains on it from fruit flies flying around with

    biological fluid and house being completely gutted. The carpet was new before my mom passed away just the kitchen vinyl was original when the house was built. A mortgage is still owed on the house so it has to be 100%

    insured just like a car has to have 100% coverage one it if you still have a bank loan on it.

    That is the thing, the house hasn't been put back to the way it was and insurance company is trying to put off the cost on bio clean up company that is the problem. Technically I was using the house, it's been my home of

    residence since I was born I was just stationed over seas but I couldn't live in the house when I got back in January which could fall under loss of use. Regardless even though my mother has passed away, her estate is very

    much open which can still collect that claim under my moms name. I can't sell the property because it put the value of the house way under because of bio hazard, nor pass even a safety inspection like trying to get a VA home

    loan.


    "liable for is the area relating to the event" My mother decomposed in the living room, literally right next to the kitchen which is the most contaminated area in the house, kitchen & living room is one giant room. That

    is why

    the vinyl has to be removed because fruit flies flew all over the kitchen dropping bio fluid all over the floors and walls. I was told by the insurance agent it was not covered at the time(she is PoS anyways never answers my

    phone calls after I renewed the policy in my name) when my mother passed away, I didn't have time to think things through because I had to get back to Italy. The whole house sat since August in bio hazard which now the

    whole house has been contaminated. That is when I got back, did some research on speaking to adjusters not insurance agents and I called bio clean up company that was referred by the local funeral home and they called the

    insurance company. Literally two minutes later I was told by adjuster it was 100% covered. There was four stages in this claim that needed to bring this house to it's proper living condition Biohazard clean up> HVAC clean

    up> Asbestos removal(kitchen vinyl) > new flooring/paint> Done. After the Bio clean up company did their clean up, taking their time sending what insurance needed, negotiations with the insurance adjuster that is when the

    problems started come about. I've talked to the bio company that their willing to cover the asbestos removal in the kitchen(got estimate of $2k) as long they get their fatty check but not new flooring/paint which will be

    thousands more dollars. Then I'm agreeing to the adjuster that is all they're paying which I'm not too comfortable until I know 100% that everything will be brought to it's normal condition. That is good

    idea, I'm going to request the whole policy so I can look at it myself word by word and start over from the basis.
     
  16. Scorpio

    Scorpio Скорпион Founding Member Board Elder Site Mgr Site Supporter ++

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    Do what you have to do for sure,

    We are just giving you ideas and possible scenarios as it is a mine field.
     
  17. gringott

    gringott Killed then Resurrected Midas Member Site Supporter

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    You can't get there from here.
    33percent, you have a complicated situation obviously. I would think about seeking legal advice.
     
  18. Scorpio

    Scorpio Скорпион Founding Member Board Elder Site Mgr Site Supporter ++

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    In the contractor exam for this state, one of the questions was: When does the insurance denial process begin?

    the right answer was and is 'when the documents are created'

    in other words, when the insurance company creates the docs to write the policy, they have already begun the denial process. That is the purpose of the exclusions.

    The denial did not begin with the adjuster, or this guy or that guy.

    fyi,
     
  19. 33percent

    33percent Seeker

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    The question should I get a public insurance adjuster or a lawyer? I sent over the documents to a public insurance adjuster to see if I have a case. I acquired the insurance policy, noticed says $50k coverage in bacteria? Also loss of use is covered as well. The bio clean up company is willing to cover the cost of the vinyl in the kitchen but wants their $24k. Just reading the policy myself, seems there is money involved that I should be compensated for.
     

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