My husband and I have been searching for a home in a good neighborhood in North DFW since March. The market is CRAZY right now! We have lost 6 houses in a bidding war. We finally have a house that we love, but it is owned by a company and they refuse to do any repairs before closing. After inspection yesterday, we found that the houses in this area are still using Cast Iron plumbing, the roof is old (no damage, but old) and the HVAC works well but is old and will have to be replaced in the next several years. Everything else is great and it even has a pool. The house and neighborhood are well maintained and beautiful.

We are told that cast iron plumbing is a big no-no.. but all of the houses in Richardson have it for the most part, so we'll probably run into this problem again. If the plumbing camera inspection goes well today, we have plans in place to get the pipes "lined" with epoxy to extend their life. (Is this a good idea?)

We are first time home buyers and don't mind a challenge, but are worried about what we're getting ourselves into. Anyone have any advice? On the roof/plumbing/whether to go forward, etc.? Should we ask the seller (who is a company, not a person) to lower the cost of the house?

Thank you in advance for any input!

*edited to show new knowledge, thanks to advisors!*

The items you mentioned seem like normal house issues for the area, and are more preventative repairs than needed repairs. (Welcome to home ownership/maintenance)

Given that do not be afraid to walk away from a deal on the house. The cost of walking away is minuscule compared to making a wrong purchase.

I live in Plano and my 1979 house still has cast iron pipes. I have a warranty with HomeServe USA to cover my sewer ($11.50/month) and water ($9.00/month) lines. So basically $20/month covers both. I've already had the line snaked with a camera and there is corrosion in a spot on the sewer line. It's just time before that collapses. I got an estimate of $7,200 to replace the sewer line. It's 30 feet from my house to the road. Therefore, the warranty is a no brainer. The warranty also provides free clearing in the case the line backs up. You do have to wait 6 months before the warranty goes into effect.

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the HVAC will have to be replaced in the next few years (but we can use home warranty for that)

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Good luck with that. Home warranty companies will send out the shadiest contractors you've ever seen, and will limp the old units along with spare parts as long as they are available (aka, forever). I would not count on getting a new system via warranty. Just go ahead and budget for an eventual replacement.

Regarding the cast iron pipes, how accessible are they? Pier and beam or slab foundation?

If it's a slab foundation I'd have concerns as any and all repairs will be expensive. If its pier and beam with decent access in the crawl space I'd be less concerned as repairs can typically be made relatively easily and much cheaper. Haven't heard any feed back on the coating process. On old roof can and will affect your insurability, insurance premiums, carriers that will offer coverage and ability to obtain replacemeent cost coverage on the roof. If the inspector says its in good condition, you may have to guess favorably on the age. HVACs arent cheap but can typically be bandaged along, this summer is looking like it might be rough, so you may want to make sure you have the budget to replace as needed. You may be getting a home warranty, and they can help, but be prepared to wait longer than you would like if the A/C goes out, and they will do all they can to avoid paying to replace it.

You said the house is owned by a company, so im guessing one of those we'll buy your house no questions asked companies like Open Door that sellers usually turn to when they can't sell their home on the open market for one reason or another. If thats the case and it appears to be a great house and in a desirable area, why did they (presumably) sell to a company for what was likely a deep discount to market. The previous sellers may have been aware of some expensive repairs needed and just wanted to get out from under it, and now the company is passing those on to you.

If you havent, you should get a thorough pool inspection as well.

This could be a great house for you, but do your due diligence. Ask your agent to look into previous listing history, there may be old sellers disclosures or listing info that could be helpful.

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HVAC will have to be replaced in the next few years (but we can use home warranty for that

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Do NOT count on a home warranty for anything.

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The house and neighborhood in highly sought-after Richardson are so nice that this house could resell for a lot of money with updates in a few years, if needed.

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Do NOT count on this. You could easily lose money on a house.

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Everything else is great and it even has a pool.

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T&P for your budget.

Powerbelly must have had a bad experience in the housing market. I have a pool, love it, and it doesn't cost a lot. Actually, my home warranty has been very helpful with pool repairs. The filter and motors are the most expensive an both are covered by my home warranty. I've had both replaced under the warranty.

PlanoAg98 said:

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Powerbelly must have had a bad experience in the housing market. I have a pool, love it, and it doesn't cost a lot. Actually, my home warranty has been very helpful with pool repairs. The filter and motors are the most expensive an both are covered by my home warranty. I've had both replaced under the warranty.

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It is foolish to expect to be able to sell a house after a few years for "a lot of money". Any decision making using that logic is flawed.

There is one neighborhood in Dallas that maintained home values during the last recession (hint: it wasn't in Richardson).

Home warranty companies are notoriously unwilling to replace HVAC systems.

And you admit you have had expensive pool equipment fail. You were lucky to get it covered. Not everyone is so fortunate.

powerbelly said:

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PlanoAg98 said:

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Powerbelly must have had a bad experience in the housing market. I have a pool, love it, and it doesn't cost a lot. Actually, my home warranty has been very helpful with pool repairs. The filter and motors are the most expensive an both are covered by my home warranty. I've had both replaced under the warranty.

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There is one neighborhood in Dallas that maintained home values during the last recession (hint: it wasn't in Richardson).

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Let me guess... highland park?! please imagine a nice eyeroll along with that haha

Kay903 said:

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powerbelly said:

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PlanoAg98 said:

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Powerbelly must have had a bad experience in the housing market. I have a pool, love it, and it doesn't cost a lot. Actually, my home warranty has been very helpful with pool repairs. The filter and motors are the most expensive an both are covered by my home warranty. I've had both replaced under the warranty.

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There is one neighborhood in Dallas that maintained home values during the last recession (hint: it wasn't in Richardson).

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Let me guess... highland park?! please imagine a nice eyeroll along with that haha

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Yes, you can eyeroll all you want, but the park cities held steady while the others dropped a few percentage points. Do NOT count on short term appreciation.

We are currently in a battle with our home warranty to fix an upstairs ac unit. It's been 2 weeks and they are taking their sweet time. Thankfully we can all basically live downstairs with a working air conditioner because upstairs gets about 95 or so during the day. They are trying to piece together parts and only covering a small percentage of the cost. And we have to use their companies, charging us 3 times the cost for parts we can find on amazon. So I agree with previous posters; do not rely on them for any type of hvac repair. Just save money each month, shop companies, and replace it yourself if it goes out. That seems to be what we are headed toward.

Great advice from all! Thank you!!

Point taken, we won't rest on that, but will never be able to afford somewhere like HP! So Richardson is the next best option since my husband works downtown Dallas. I think it will always be a nice area for middle class people who have to work downtown. There's always going to be a demand for that.

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Yes, you can eyeroll all you want, but the park cities held steady while the others dropped a few percentage points. Do NOT count on short term appreciation.

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I must be lucky. I bought my house 5 years ago and since then the appraisal has gone up 25%. I even challenged and beat an appraisal increase one of those years.

Our A/C crapped out last summer (three months after buying the house). Home warranty was essentially useless.

And I agree with the poster above - absolutely get a separate pool inspection!

PlanoAg98 said:

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Yes, you can eyeroll all you want, but the park cities held steady while the others dropped a few percentage points. Do NOT count on short term appreciation.

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I must be lucky. I bought my house 5 years ago and since then the appraisal has gone up 25%. I even challenged and beat an appraisal increase one of those years.

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1. You haven't sold it yet so those are unrealized gains that could easily roll back if we go into a prolonged recession.

2. Appreciation is nice, but should never be counted on. People should not assume their houses will go up in value. Has everyone forgotten the recent housing crisis?

Richardson Heights?

Richland Park neighborhood!

Kay903 said:

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Richland Park neighborhood!

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Didn't they get decimated by the tornadoes last year?

We have friends in Richland Park and a lot of that area was hit hard with the tornado last October. For the most part, it's a nice area but sadly it's surrounded by some sketchy areas (apartments). While the RISD is still respected, some of the feeder schools in that area are suspect. Not sure if public schools are a concern with you. If so, do your homework carefully.

I bought my first house in Plano 5 years ago. Its also a late 70s house. I have run into a lot of the same issues you will:

1. Don't rely on a home warranty. They are just window dressing usually thrown in to buy a house. They will find any excuse not to pay out on a claim.
2. I had to replace my AC last year. Cost me 15k because I had to have the old lines and vents replaced and new ones put in. Then I had to raise the ceiling. I had the old style drop down AC vents. I only include this information because there will ALWAYS be hidden costs.
3. Check the water heater and age as well as the lines running into it. Is there corrosion or build up? If so, might want to get the fittings replaced with brass ones soon.
4. Agree with above poster about getting a sewer and water line policy. It cost me about $20 a month for full coverage and its a good chance the sewer line will need to get replaced within the next 5 years or so. I was given a quote of about $8k.

Just a few things to think about. Good luck!

PlanoAg98 said:

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Yes, you can eyeroll all you want, but the park cities held steady while the others dropped a few percentage points. Do NOT count on short term appreciation.

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I must be lucky. I bought my house 5 years ago and since then the appraisal has gone up 25%. I even challenged and beat an appraisal increase one of those years.

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If you're using CAD appraisals (which I assume you are based on the "challenged" statement), be very careful.

I'm in Rockwall and I'd sell my house today if I could get 95% of what the CAD just "settled" for. And that was a solid 10% below where they "appraised" my house.

PlanoAg98 said:

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Yes, you can eyeroll all you want, but the park cities held steady while the others dropped a few percentage points. Do NOT count on short term appreciation.

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I must be lucky. I bought my house 5 years ago and since then the appraisal has gone up 25%. I even challenged and beat an appraisal increase one of those years.

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Appraisals for purposes of determining property tax have nothing to do with your home's value, and everything to do with your local government trying to squeeze as much tax revenue out of you as they possibly can.

Why would local elected officials go through the bad publicity of a property tax increase, when they can leave tax rates alone and just appraise everyone's property at more than last year to get the extra money they want?

John Francis Donaghy said:

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PlanoAg98 said:

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Yes, you can eyeroll all you want, but the park cities held steady while the others dropped a few percentage points. Do NOT count on short term appreciation.

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I must be lucky. I bought my house 5 years ago and since then the appraisal has gone up 25%. I even challenged and beat an appraisal increase one of those years.

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Appraisals for purposes of determining property tax have nothing to do with your home's value, and everything to do with your local government trying to squeeze as much tax revenue out of you as they possibly can.

Why would local elected officials go through the bad publicity of a property tax increase, when they can leave tax rates alone and just appraise everyone's property at more than last year to get the extra money they want?

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Siri, insert hes_right_you_know.jpeg and select lightbulb emoticon

Here's what you can expect from warranty companies regarding AC's:

1) For the low price of $600-700 per year, you have the privilege of paying them $75-85 per visit if something breaks. If it does break, expect it to take at least 2-3 days to get someone out there.

2) When the AC company arrives, they will do the bare minimum to fix the issue. With an older AC which oftentimes need a freon recharge because they are slowly leaking somewhere, expect to pay out the wazzoo per pound to have it recharged (freon not covered by warranty). So for a very basic fix visit, between the visit fee and paying for freon, they are into you about $250-300 on top of what you are paying for the warranty. There are a crapload of companies that will be at your house within a few hours and could fix the same issue for that or less, sans the warranty.

3) If something significant with the system does break, they'll still only do the bare minimum to fix it. They're never going to just replace your whole system - you'll be patch-worked to death. But along the way, expect them to find things that aren't "code" and not covered by the warranty, but you'll have to pay out the wazzoo for them to do any work at all. So they'll be into you for a lot more to get any work done.

I've had a fairly good experience with my home warranty that I've had since 2015. My pool pump quit working a few weeks ago. I filed a claim and paid the service fee. The pool tech replaced the capacitor and the pump worked like a charm again. A few weeks later the pump went out again, I filed another claim. However, they did not change a service fee unless the pool tech felt the issues weren't related. This time the pool tech replaced the whole pump. I was certain they were going to try and collect another service fee but they did not. The pool pump was $300 and the labor would have been about $100.

Thank you all for your advice and help on this important topic! I have learned so much. We are excited to move forward with this house, knowing the risks and what we can do to be proactive. The Aggie network is the best out there!

PlanoAg98 said:

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I live in Plano and my 1979 house still has cast iron pipes. I have a warranty with HomeServe USA to cover my sewer ($11.50/month) and water ($9.00/month) lines. So basically $20/month covers both. I've already had the line snaked with a camera and there is corrosion in a spot on the sewer line. It's just time before that collapses. I got an estimate of $7,200 to replace the sewer line. It's 30 feet from my house to the road. Therefore, the warranty is a no brainer. The warranty also provides free clearing in the case the line backs up. You do have to wait 6 months before the warranty goes into effect.

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Better hope you don't need a repipe. Will be multiples more than $7,200 and I can't imagine any insurance for $20 a month covering that. When I sold my very basic ranch the repipe was $22k.

I'm an Insurance Broker in Dallas. Many carriers are offering a new coverage called Service Line/Utility line Coverage. This is new over the last couple of years and is very low priced ($20-$50 annual). It can actually cover wear and tear to repair the pipes (only outside and coverage stops at your premise) When you get insurance, I'd be sure to ask about this coverage. My username is my real name, feel free to reach out to me if I can help with anything. Congratulations on your new home!

Bingo Bango Bongo said:

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Here's what you can expect from warranty companies regarding AC's:

1) For the low price of $600-700 per year, you have the privilege of paying them $75-85 per visit if something breaks. If it does break, expect it to take at least 2-3 days to get someone out there.

2) When the AC company arrives, they will do the bare minimum to fix the issue. With an older AC which oftentimes need a freon recharge because they are slowly leaking somewhere, expect to pay out the wazzoo per pound to have it recharged (freon not covered by warranty). So for a very basic fix visit, between the visit fee and paying for freon, they are into you about $250-300 on top of what you are paying for the warranty. There are a crapload of companies that will be at your house within a few hours and could fix the same issue for that or less, sans the warranty.

3) If something significant with the system does break, they'll still only do the bare minimum to fix it. They're never going to just replace your whole system - you'll be patch-worked to death. But along the way, expect them to find things that aren't "code" and not covered by the warranty, but you'll have to pay out the wazzoo for them to do any work at all. So they'll be into you for a lot more to get any work done.

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It's as if we lived the same life. While ours was a one year warranty included by the seller, it was patently useless.

1) ours was $90 per service call. And it was several days without AC between call and tech arrival.

2 and 3) we made five calls for the same issue our first six months in the house. Turns out one of them made a huge gaffe and replaced an expansion valve with the wrong type and recharged the system with the wrong refrigerant. We ended up having to replace the mistake and now an evaporator core on our own. Each and every one of the 'insurance company provided' contractors were shady as heck. Add in time from work and frustration dealing with it and it's just impossible to justify.

After finally deciding the warranty was a waste of time, I just sucked it up and got a qualified company to fix it. One call, two visits (had to wait for the correct parts) and it's worked ever since.

Apologies if this off topic. There's a lot of societal expectation on buying versus renting. I would do a google search on objective discussions of how to look at the buying versus renting numbers and make sure this is the right call for you.

I could be wrong, but I think that a lot of the $400kish older homes in Richardson and far far north Dallas often have a lot of deferred maintenance, and the areas aren't so hot that you are guaranteed to get your money back after repair/rehab, especially if you're not being really cost efficient on repairs. Plus the market right now close to downtown Dallas is kinda unknown right now. I just bought my third home close to downtown. I'm not too worried, but it wouldn't surprise me if things closer to downtown cool a bit.

Especially when the home in question doesn't zone to the best schools in that district.

City of Richardson in Collin County = Plano schools. It was worth it.