Posted on 10/24/2020 11:04:08 AM PDT by CaptainPhilFan
COMPLETELY off topic.
Buying a home in a unknown market, just hit with horrendous and unexpected Inspection Report
I need something because I'm under contract and this is my only negotiating chip, or else I walk and lose a few thousand.
Hi FReepers, yes I am a monthly contributor and this is my 2nd Vanity of the year. And yes I am asking for opinions about potential costs of things.
I'm trying to purchase a home in southwest Virginia. Found an almost perfect place - I saw it needed work, had old galvanized pipes, needed upgrades, etc..
The price was good but not a bargain, get the picture?
Had the Inspection done yesterday. Aside from the things I figured needed doing, these are the major items the Inspector found:
The old electric is hidden behind new outlet covers - ALL the wiring needs replacing
ALL the plumbing/pipes are in pretty bad shape and needs replacing
Furnace and AC are 30 years old
Ground drainage is bad and needs remediation
A host of other smaller items, lots of other electrical issues.
What would the cost be to rewire and replumb and install new HVAC? 30 grand or more? 20 grand or less? I can't get any answers where I am right now and I am desperate.
The Inspector can only make the report, not make recommendations. ALSO - there may have been a suicide in the house
and Gladys Kravitz lives next door. Seriously.
Otherwise it's a decent property in a fairly good area.
I think I have to walk away but am trying to get any information about potential cost before I do.
Thanks all, and if you're going to dis me for this post don't bother.
I just put in 5 ton 16 seer AC. 3 quotes. Went with Payne AC. $8500. Two other changes no go. One shyster. Other wanted 9900 for 4 ton. Only new ductwork was what they had to do. House is 2350 sq ft. Florida.
Get local bids. Prices vary around the country. Add up all the bids, subtract from the price you will pay.
Check your contract. With all the repairs that are needed that was not listed in the disclosure you may be able to walk away or have the price dropped.
Good luck.
Did not your contract include a provision that the house pass inspection by a licensed home inspector. If you did have such a clause, you can demand your deposit back. If you did not have such a clause, you have only yourself to blame for your predicament.
Its easier to get out at the beginning rather than at the end.
You are financing this home? If so, consider writing into the purchase contract a ‘hold back for the repairs.
Get estimates for the work that needs to be done and write that total plus 10% into the purchase contract.
Good luck.
Tear it down. Put the money for repairs into a new house. Get a loan for the balance of the cost to construct a new home. Interest rates have never been lower.
“ALL the wiring needs replacing
ALL the plumbing/pipes are in pretty bad shape and needs replacing”
Defective? Not disclosed by seller? If you had standard contract you can walk away without losing deposit.
Do you have an agent?
It sounds like a money pit, but I would start by getting written estimates from reliable contractors. However, with Gladys Kravitz next door I might just eat the few thousand dollars and find a better place. Good luck.
Didn’t your contract depend on a good inspection report? If it were me I would delay the closing until you get quotes on how much it would cost to clear all of the discrepancies.
Sorry...that's a can of worms that is virtually incalculable. My opinion is that there's no way anyone can calculate the costs accurately, because until you get everything ripped out, only then you can understand what is needed to properly replace everything. I came in over $5k on the first bathroom I replaced in my house. To do the job(s) properly and get the bathroom right it was necessary.
Unless the inspectors report is inaccurate,run don’t just walk away. I don’t know where this deal is located but in my area between the permits and inspections it is likely to go way up in cost before you could get a certificate of occupancy to resale. If you are a licensed plumber or electrician you might be able to break even if you work for free.
Take the loss and be glad to not get burned. Think about how much other work may pop up once you start opening up the whole house.
The number of unknown variables that figure in to an estimate make this impossible to do on a forum like this. Even if someone was a contractor and could give you an estimate for the work as they would price it sight unseen, you’d have to find a local contractor with a similar estimate after looking at the work.
Probably best thing you could do for yourself is to look at the neighborhood comps of a similar home, but in the condition you want to bring the house up to. Estimate that the repairs will cost at least as much as the difference between the two, and then add in 10-15% of surprise budget because there’s going to be a surprise or two. Without a lot more information, that’s ablut the best you’ll probably be able to get from this forum.
I just replaced my HVAC (no duct work though) - $9800 (2500 sq. ft. home, needed 2 separate units for the house). I’ve priced rewiring and it comes in at around $8K - $9K.
From all the things you’ve pointed out, it sounds like you need to see if there is any negotiating room.
BTW, I’m right over the border from you in Rockingham County, NC
Walk away
My parents just sold a house and buyer’s inspector found three pages of items. They negotiated an allowance for the repairs off of the final purchase price and my dad had to get a couple plumbing issues fixed before the deal was finalized. Buyers basically got everything they wanted that wasn’t clearly visible when they made the offer. Like my dad rejected a couple small mortar cracks in some brick.
My dad could have canned the deal and buyer would have lost their deposit. But he wanted the deal done so in all he took about a 3k hit. They came in 10k over asking though so he ate a bit of the profit.
Point is buyer had leverage I didn’t think they had.
You might lose your hold money, but if the sellers did not disclose all this, you should be able to get that money back. Even if you can’t get your hold money back, you have listed upwards of $20k in repairs, IMHO.
You are going to pay the mortgage...so...
Is this a mortgage requirement?
Yes-walk or negotiate remedies.
No-
What can you live with?
Do the systems work?
How long do you anticipate ownership?
If you do walk, next time make your offer contingent on a satisfactory inspection.
While the inspector can’t advise on buy or run, it is possible an oblique message was being conveyed.
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