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Old 01-22-2018, 12:49 PM
 
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Can I just ask though, as a first time home buyer (well second, but first time with a townhouse), I've seen a couple of people mention lowering the purchase price. What good is it saving 50 bucks a month and still have potentially thousands of dollars in repairs/improvements?
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Old 01-22-2018, 01:08 PM
 
Location: northern va
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Quote:
Originally Posted by BirdieBelle View Post
OP can ask them to do this, but they still may not.
Of course
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Old 01-22-2018, 01:14 PM
 
Location: northern va
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Quote:
Originally Posted by DomRep View Post
Can I just ask though, as a first time home buyer (well second, but first time with a townhouse), I've seen a couple of people mention lowering the purchase price. What good is it saving 50 bucks a month and still have potentially thousands of dollars in repairs/improvements?
I'd advise against that, if it can be avoided. You're correct, lowering your payment $50 a month is nice, and would be for the life of the loan so you'd eventually come out ahead, but you're still on the hook for the work after you take possession.

If anything, see about getting a contractor (yours ideally) invoice to be collected, on the sellers side, and then have the work done after settlement. Just keep in mind that if you negotiate a credit and then a can of worms gets opened up, after settlement and once the work is being done, it's on you essentially.

Or, have them do the work while under contract and then just get invoices at settlement. Just be careful with how you ask for the work to be done, so they don't do the absolute minimum to save money (which is the reason I prefer they do not do work, if I'm on the buyers side).

If you didn't get the 11,500 in closing costs, you could have just had the credit for the work to be applied there, then just pay the contractor out of your own pocket after settlement.

If for some reason your closing costs are going to exceed 11,500, you could always try and negotiate some of the repair credit into that number and increase it.
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Old 01-22-2018, 01:19 PM
 
1,528 posts, read 726,575 times
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Quote:
Originally Posted by DomRep View Post
Can I just ask though, as a first time home buyer (well second, but first time with a townhouse), I've seen a couple of people mention lowering the purchase price. What good is it saving 50 bucks a month and still have potentially thousands of dollars in repairs/improvements?
Generally I prefer to agree a price reduction rather than for the items to be repaired by the seller. That way, I can get it done to my satisfaction.

There is a risk in this because repairs might be more complicated and more expensive than anticipated. If the seller does it, he has the risk if something goes wrong or something more complicated is discovered. But if he does the repair, you have the risk that he took the cheapest quote, didn't oversee the workmanship very closely, or if given options in the repair said "do it the cheap way...it doesn't matter to me if it has to be redone in two years".

When I was starting out, I agreed a repair that the seller would do. There was a misunderstanding of how something would be addressed in the fix (builder rightfully took his orders from the seller). After the first day of the work, I visited the home. I did not like the approach once the work started. It became a big mess because it was 3 way dispute (builder doing repair, seller, me). Builder said, "I broke my own rule doing this job...I never like to have to deal with a buyer and a seller and chances of this happening are very high". Luckily the builder did a very honorable thing and walked away with only a small financial impact after completing about 1/3 of the job.
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Old 01-22-2018, 01:25 PM
 
Location: Northern Virginia
4,681 posts, read 4,836,858 times
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Quote:
Originally Posted by DomRep View Post
Furnace/HVAC has rust, there's no tag to say it has been serviced (seller's agent did contact our agent and told him they were going to service it though)
- Evidence of corrosion in the water heater, still the original water heater
- Evidence of corrosion/moisture in the electrical panel
I would not be concerned about replacing an original water heater. I believe we paid $600 for a new (natural gas) water heater installed.

What concerns me is that there is evidence of moisture where there should not be any moisture.

Quote:
Originally Posted by Lacerta View Post
To me, the uneven floor, although no one else mentioned it, is something I would want checked out. On 100 year old houses, the floor is normally uneven, but not 22 year old houses. WHY is the floor uneven? Is there a missing support in the crawl space? Has a floor joist been cut? Is there rot? If it is on a slab, has the slab settled? Maybe it is nothing at all, but I'd want to know why before just ignoring this problem.
This, too.

These would raise yellow flags with me, and I would investigate further into the causes of these items before proceeding further.

Last edited by HokieFan; 01-22-2018 at 01:56 PM..
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Old 01-22-2018, 02:46 PM
 
25,833 posts, read 49,727,953 times
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As a seller I have agreed to an offset... the last thing I want to do is spend money on repairs on a deal that has not closed or worse be involved should a repair come into question.

As a buyer... I always take the credit... I really don't want the sellers doing anything.
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Old 01-22-2018, 03:24 PM
 
Location: garland
1,595 posts, read 1,571,570 times
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Quote:
Originally Posted by DomRep View Post
Can I just ask though, as a first time home buyer (well second, but first time with a townhouse), I've seen a couple of people mention lowering the purchase price. What good is it saving 50 bucks a month and still have potentially thousands of dollars in repairs/improvements?

compound interest. Lowering the purchase price and paying out of pocket for as much as you can results in exponential savings down the road. Would you finance a furnace purchase over 30 years? Likely not.
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Old 01-22-2018, 03:54 PM
 
Location: Cary, NC
31,613 posts, read 55,335,524 times
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Quote:
Originally Posted by DomRep View Post
Can I just ask though, as a first time home buyer (well second, but first time with a townhouse), I've seen a couple of people mention lowering the purchase price. What good is it saving 50 bucks a month and still have potentially thousands of dollars in repairs/improvements?
$50/month is ~$10,000 in repairs, but spread over 30 years. Of course, that doesn't matter if you cannot afford repairs.

Quote:
Originally Posted by Ultrarunner View Post
As a seller I have agreed to an offset... the last thing I want to do is spend money on repairs on a deal that has not closed or worse be involved should a repair come into question.

As a buyer... I always take the credit... I really don't want the sellers doing anything.
Exactly.
I would rather provide a price offset for a reasonable quote than take on the liability for a repair.
Or, even closing costs credit to cover a reasonable quote.

And likewise, it is a smart buyer who is willing to handle their own repairs for a reasonable credit.
Unfortunately, many buyers are cash maxed out, and cannot pay for repairs, even if they get a great deal on a house. They need the sellers to do them.
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Old 01-22-2018, 03:59 PM
 
Location: northern va
1,555 posts, read 1,994,506 times
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Quote:
Originally Posted by MikeJaquish View Post
$50/month is ~$10,000 in repairs, but spread over 30 years. Of course, that doesn't matter if you cannot afford repairs.



Exactly.
I would rather provide a price offset for a reasonable quote than take on the liability for a repair.
Or, even closing costs credit to cover a reasonable quote.

And likewise, it is a smart buyer who is willing to handle their own repairs for a reasonable credit.
Unfortunately, many buyers are cash maxed out, and cannot pay for repairs, even if they get a great deal on a house. They need the sellers to do them.
agreed x100000
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Old 01-22-2018, 08:32 PM
 
6,121 posts, read 3,322,602 times
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What I've seen no discussion of here is the definition used for "corrosion." Are we talking some surface rust on the front of the panel or deep structural problems with the bus bars and terminals? Same with the water heater - rust on the cabinet or deep subsurface oxidation in the tank itself? It makes a difference, a big difference.
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