We are purchasing a home (the one listed in prior post) and had our inspection. The inspection revealed pest activity in the insulation, both in the house attic and detached workshop area. Recommended to replace. The second item was the drainage around the house. There was signs of prior water in the basement and there is water coming in at the corner of the garage all due to improper grade in the back yard. Grade needs to be built up and retaining wall installed. The costs for both are about $26k. There are other items on the list, but these were the major ones and the only ones we requested be addressed. Would you let these be deal killers for you on a house? My husband says he thinks that they should be, I think they could be if the seller doesn't agree to pay anything. We are already paying a lot for the house (a fair price in this market), but for us it's a lot.
We've bought a lot of homes and never had such large ticket items to address. Our agent made the comment that we are getting a killer deal on the house and would we consider taking half the amount we are asking for. Just wondering your thoughts.This message has been edited. Last edited by: christyinco,
The drainage issue is a big one, and from what you describe, it is usually not a DIY item. And it does not cure itself.
Don't know what kind of pest damage to the insulation. If no longer a pest issue, then it might not need replacing.
Take the advice of your realtor with a grain of salt. Their goal is to try and negotiate a sale, period. It is your money (and loan). I would personally insist on the drainage fix or compensation of the cost off the price.
Instead of accepting a credit in escrow, I would require the seller remediate all issues subject to a follow-up inspection. If they have the work performed for less than $26K to the satisfaction of the inspector, they may pocket the difference.
WRT the pest issue, the insulation must be removed and certification obtained from a qualified exterminator prior to its replacement. In addition, I would request a year's pest control contract, paid in advance by the seller.
OTOH, I understand your husband's point, too. Sometimes these issues sour buyers on a home and make them wonder what other, unseen issues lurk behind the walls. It's understandable so you'll need to consider the walk-away option, too.
It's all JMHO and good luck with your move!
The pest problem could be major if there is termites and there is wood termite damage.Be thorough on that. Even some type(s)of ants eat wood. I personally would call in a contractor to evaluate, and give estimates. In fact I would call two.This message has been edited. Last edited by: real estate lady,
christyinco, Sorry you've run into these problems - aren't you glad, though, that inspections are common now days so you know what you are buying?
To answer your question? Maybe they would be a deal breaker AND maybe not. Depends on the sellers response re what they are willing to do given the facts that are out there now for all to see.
The pest problem can be addressed now and probably is the easiest one as well. BTW, what type of pests and what is the extent of damage? The drainage problem is much more serious and can't be dealt with now in the middle of winter - house is in Colorado, right?
Also it's very likely that the sellers were completely unaware of the pest problem; not so the drainage problem so I completely understand your DH's reluctance to go forward now. You know the old saying, if someone will try to hide one thing from you, what other things might they hide as well?
I would get two more estimates for each problem and then request a credit in full for the highest one from the sellers at closing; if they are unwilling, then I would probably walk. You are paying a substantial price already and they should understand that any future potential buyers are going to make the same requests.
I wouldn't necessarily take the agent's word for anything in this situation but I don't know the amount of the final purchase price which all parties agreed upon - only you can determine if the price you will be paying allows for you to assume part of the cost of renovations/repairs that you now know are going to be essential....
Well, that's a lot of problems/money for repairs. I think I'd request the seller to remedy all with a follow up inspection. Or, if you're comfortable with it, the highest bid for repairs credited back to you at closing.
I'd keep looking, too. That might be the best solution in the long run.
Having dealt with water issues I personally would run like heck!!!!!!!!!
Best wishes for whatever you decide
I agree with CJO, I would pass on any house with WATER PROBLEMS!!!
Water problems is a big deal and it could ruin the foundation of your house. Not to mention mold and other things. RUN, DON'T WALK, away from this house with these problems now. It is not a DIY and with so many houses on the market, why would you settle on this house with water issues?
SPRING HAS F I N A L L Y SPRUNG!!!!!
The problem with asking the sellers to remedy the defects at this time, and before closing, is a physical one. The attic could conceivably be dealt with now but the drainage situation can't even begin to be addressed before April at the earliest, and May is probably more likely, as this house is in Colorado. Doubt that neither OP nor the sellers of this property are willing to put things on hold for four months.
As for why OP is still thinking about this place with "so many houses on the market?" Well, OP and her DH aren't looking for the typical suburban subdivision house that make up most of the market right now. Instead they are searching for a specific type of property that is a bit rare - acreage within a certain commuting area of a larger city with a particular type of house and accommodations for their horses as well. Not so easy to find....
Good luck, OP! Let us know what you decide to do. This message has been edited. Last edited by: Idaho Resident,
IR made some excellent points. If there are no other acceptable properties on your short list then bring in a contractor to give you a reasonable estimate to repair. If all is negotiated satisfactorily to both parties the extimated cost of repairs can be escrowed with an additional percentage to cover cost overruns. If the contract is for $800,000 and the negotiated amount for repairs is $30,000 then escrow about $50,000.
Several questions come to my mind:
In real estate it always comes back to what is in the contract. How did your agent approach potential inspection problems? Were there specific areas of concern spelled out from your visits to the property or was it pretty generic? Did you have a walk away amount in the contract such as "estimated repairs over **** would not be acceptable"?
What are the comps for the property? Is it priced to take into consideration the problems? Was the water issue included in the Seller's Disclosure statement with the listing? It is a known problem to the sellers and should have been disclosed if your state has the same requirements for disclosure as SC. There is also the question of how your state handless structural problems in a resale property.
If your state has a seller's disclosure and they did not include the water issue I would suggest asking for them to pay the cost of correction. If it was included in the disclosure and the price reflects the issue then I see it as more your problem.
The same with the pest issues. That probably was not known by the seller If it has created a structural problem then the seller should be asked to make the repairs. An inspection by a contractor should be ordered.
And Conrad, a good agent is not just a facilitator trying to make a buck. There are other issues as you can see by my response than just getting the deal done.
Everyone loves a bargain. Unfortunately in real estate when people make an offer on a bargain and find out it is not perfect they start discounting for the problems without giving a second thought to the fact that the problems were taken into consideration when pricing. That is why if you have a known problem fix it rather than price for it because the buyers will want it fixed and the lower price.This message has been edited. Last edited by: Charming,
As an update - we negotiated about half the cost of repairs off the price of the house. We did have a contractor come in and inspect. We know there was water at one time in the basement, but the seller fixed that by managing where the gutters were draining. However, for a long term fix the back needs to be reworked with retaining wall, etc. So, this will need to be done this spring for sure. We are going to do the insulation prior to moving in and use that new cellulose stuff that keeps rodents away. Not a deal breaker in our minds, but got what we could live with from the seller and agents.
Hi Christy, glad everything was settled to your satisfaction. Sorry I didn't know you were purchasing another home in CO. Quickly pulled up your previous posts but only saw unrelated items on other threads. Thought you were a snowbird -
Glad you received your estimates and have a plan to take care of everything. The reason I suggested having the seller remediate is that I see so many deals where the buyer accepts a cash credit at escrow but doesn't follow-up on completing the work, leaving the house subject to more water damage, etc.
Incidentally, you didn't mention a termite inspection and specifically noted insulation so I figured you meant rodents. NBD but the homeowners were most likely aware of the issue b/c they would have heard them overhead or in the walls (yuch)!
Best of luck with your new home and also the sale of your existing home!This message has been edited. Last edited by: BearCat49,
So there you go - perfect - it all worked out. Hearty congrats to you!
christyinco, Glad you were able to come to a resolution acceptable to all parties. It's amazing what a little thoughtful discussion can achieve sometimes! Keep us in the loop as things progress.
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