Dont ask if you dont wanna know... (contingent, appraisal, negotiating)

[jrainer]

So, I just inked a contract with a seller. The home inspection found an active leak in the roof and a leak in the pool under the concrete deck; plus a laundry list of small things I chose to ignore. The estimate to repair the major items is about $9200 - $9700 depending on the condition of the roof under the shingles. After much negotiating, my R/E agent got the seller to contribute $7000. The appraisal from BoA came back equal to the sale price so I assume the sale price reflects a move in ready house...right?

Question:
Did I give up too much by accepting a $7000 repair amount or should I have walked away from the deal? (According to my agent, I dont think the seller would come off any more. The only other option was to walk. ) Is it the norm for a seller to contribute 100% of the repair items or a fraction?

[tamitrail]

I would have asked for 100%. What does your contract say? Usually there is a dollar amount set for repairs needed found on the inspection results. I think my inspections always said $500. If it was more, I could get out if I wanted if the seller didn't want to fix it.

[jrainer]

we did ask for 100%. the seller would not concede. the contract was an "as is" contingent upon buyers discretion after the home inspection. the home inspection turned up a lot of things, so the repair limit would have been exceeded immediately. seemed like a wise move at the time.

i guess the real question would be, how do you determine a true value when no comps are around to justify it? is my appraisal accurate or conservative since it was done by the lender (BoA)?

[bentlebee]

I would walk!

[bentlebee]

By the way why would you ignore the rest...that doesn't sound very smart. It can cost you a lot later on when you you aren't able to ignore it...I guess you are emotionally to attached already....nice, but many people have experienced that buying a home is also a business deal or it will hunt you later on.

[Rakin]

It all depends on how much of a "deal" you got on the home. If he sold it to you for $20k under market, I could live with a few thousand in repairs.

Now if you paid top dollar, that's a different ball game.

[Donn2390]

I can understsnd you not walking if you really want the place, but if you did, then the seller would have to assume the entire amount of the repair, so he would be better off giving you the full amout. That way he is assured a buyer, where as if you walk, he pays the whole bill, and has to start over looking for a buyer. In today's market, that isn't very wise on the sellers part. Your realtor needs to grow a pair...!

[jrainer]

true. according to my shopping research, the house is a good deal. the appraisal threw me for a loop as I was expecting it to be higher. i think BoA was just being conservative.

i tried and tried not to be emotionally involved. it's hard to distance yourself when you find something that hits you just right. hopefully with more experience, i'll be more robotic with my purchases. just hope this one dosen't bite me!

thanks for the input..

[CrissCT]

3 years ago when we sold our home in a good market, we paid 100% of the things the inspection found that the seller wanted corrected (a radon system and another item in the basement to do with drainage). We did it because it was the right thing to do, even though we weren't aware of the issues and had bought it 2 years prior with no such findings.

[Silverfall]

Originally Posted by Donn2390

Your realtor needs to grow a pair...!

I've had clients that loved a home so much that they purchased a home with many significant problems that the seller's refused to fix. I thought they were getting into a money pit, but they really wanted the house.

We can only do so much. The rest is a decision on the part of the buyer.