Latest California real estate bargain, former pot houses

Sacramento, California - June 30 2008 - The price of the two-story, 3,800-square-foot house for sale in Elk Grove stands out even in a down market.

The five-bedroom, three-bath home in a gated community is listed at $387,000 “as-is” or $437,000 with repairs.

The low price - and the need for repairs - stems from the house’s use as an indoor marijuana farm. Last fall, police hauled out 865 plants.

The bank-owned house has drawn offers despite its history, said Gary Lee, a Realtor with Re/Max Gold who is the listing agent for the home. “They look at them as bargains,” Lee said.

The house is one of dozens in Elk Grove where occupants ripped out walls, set up irrigation systems and pirated electricity to cultivate their illegal crop. But while the homes may be cheap, law enforcement and environmental health officials say buyers should consider potential structural problems and health dangers such as mold and chemical contamination.

“They should factor that into their decision about whether or not to purchase the home,” said Gordon Taylor, special agent in charge of the Sacramento office of the U.S. Drug Enforcement Administration.

Even if former pot houses are fixed up, the remediation work should be assessed, said Jerry Bucklin, an industrial hygienist who is president and CEO of Network Environmental Systems Inc., of Folsom.

Latest California real estate bargain - former pot houses, but buyer beware
by Sandy Louey | Sacramento Bee