Droppings Happen

Recently, I completed an appraisal on a large custom home. It was really fun to see all the different features and the excellent quality of this gigantic luxury home. As the Realtors say it had “too many features to mention."

While this house was an example of the best the market could offer, down the street was one of the worst. It was a large, partially finished home, sitting vacant. It had been framed and covered with sheathing. I would imagine the builder had over $700,000 in costs in this home, particularly if you added in the value of the lot and foundation. Apparently, business had gone bad and the builders spec. homes were not selling. Interest costs had eaten up the profit. The bank refused to continue to give the builder draws so the worked stopped on the house and it sat vacant for almost two years. Eventually, the builder went bankrupt and the house was left to sit unfinished and open to the weather. In time, another builder developed interest in the house and decided to visit the property for an inspection. He did an estimate to cure the weather damage and take the existing improvements to a finished stage. He decided against taking on the project because there was so much Pigeon feces in the home. The cost of cleaning up the droppings and the ongoing liability made the project unfeasible. I asked myself several times, why didn't the bank close up the house and put a roof on it? It would have been inexpensive, and it would have protected their investment. In time, the weather will even damage the heavy concrete foundation, then the house will be worth less than the lot value because it will incur the costs associated with demolition. What a waste, all due to a lack of foresight and experience.