It will be very difficult to prove if the seller knew of those issues when they sold the home, but if there is some sort of evidence that the sellers lied in their disclosures, then you would have grounds for recourse.
I specialize in hard to sell homes and am available via phone, email, or text if you need any assistance.
Equity real estate
A couple of suggestions that may help you in the meantime:
1. You could consider a short sale. This would allow you to sell without covering the costs and fees on your own so you could just "walk away" and only lose the $1000 you paid towards the home. There are some tax issues to consider with this and can negatively impact your credit. If this is something you want to look into I would highly suggest sitting down with a professional that is certified in distressed properties to evaluate it and see if you're a candidate for this option.
2. You could look into selling it "seller finance" or as a "lease option". This would allow you to sell the home and move on to rent something else (or purchase if you qualify for both mortgages) but doesn't take you off title. That said, in this market I am finding that often people can get top dollar for their home if they offer this option for buyers. By doing this you may be able to get that 10% equity you would need to be able to sell now.
3. You could look at renting the home out until it hits that 10% equity position. I have a few clients that are in this situation and have me watching their home value until they hit that magic number.
Overall, I think your best bet is to sit down with a professional, evaluate your options and create a game plan. Even if you're going to be staying in the home a bit longer that might be an easier proposition to face if you have an exit strategy.
We have lived here for almost 6 months. I'm afraid we have already lost value on the house since we have started some big projects and have completely gutted out the third bedroom to be remodeled. I'm now feeling like putting money into fixing up this house is a waste because the list of problems keeps adding up! I'd much rather move to a cheaper town and buy a newer home than put 20+ grand into fixing all our problems!
We chose to buy because for the area we live in, having a mortgage is the cheaper option. Plus we were done living in apartments and renting a house wasn't in our price range.
Renting our house isn't an option for us! I feel like renting will just cause stress and we will constantly be responsible for fixing random old house problems. I just discover this morning our heater is broken! I want to be done with this house altogether!
When we bought the house, the leaking foundation, Brown Recluse investation, horrible bathroom ventilation, and a broken swamp cooler (fixed now!) were not addressed to us! Are you saying we can do something about that fact these problems were not addressed?
-You could resell the home if the value would support.
-You could rent the home and move somewhere else (depending on what type of loan you have on your home, some FHA loans do not allow you to rent... I can discuss further with you)
-You could fix some of the problems that are the biggest issues and continue to live in the home. (I am able to recommend great handymen, plumbers, electricians, etc at an affordable price.)
Your best option would be to sit down with a realtor to see what your home's value is today and discuss all of your options. A comparative market analysis would give you an idea of what homes in the are selling for and the time it will take to sell. If you have only had the home for a month it may be difficult to sell for more (not impossible).... short sale, bank owned, bought under market value, or you remodeled and made the home nicer are the easiest ways for values to be increased in a short period of time.
I would also check to see what homes are renting for in your neighborhood. Many times the rents will cover the entire mortgage. However, there are many more issues that can come into play by being a landlord.
If you decide to sell, make sure you go over all the fees associated with the sale of a property. There are title fees, realtor fees, concessions, taxes, unpaid utilities, etc... my guess if you only paid $1,000 to move in, you used a utah housing loan and there were significant seller paid closing costs.
If you have any questions or if there is anything I can help you with, Please feel free to contact me directly.
Best of luck and hope this helps, I am really sorry to hear you are having a hard time with your new home.
Equity Real Estate- Luxury Group
Or you can sell it. Whether or not you'd lose money is a question that can only be answered by looking at the market and seeing what the home can sell for. I would also question whether or not the previous owner disclosed some of those issues to you prior to you purchasing the home.
Give me a call and I can look over your documents to see what I can find, and we can do a valuation of the home to see what it would look like to sell it.
Starling Real Estate