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It looks like the major issues are the electic panel, the oil tank, and the sprinker system. I have seen people negotiate over oil tank abandonment and electric panels before, and I really think that it comes down to how badly you want the house. The electic panel is 1500-2000 and the oil tank is about another 2000 (although you could delay that). So you're looking at about $5000 max and you stated that other similar homes in the area have sold for +- 5,000. So, even with those expenses, your still within the range.
Also, the in-ground oil tank was something that you should have known about before the inspection.
I would be a bit more concerned with the sprinkler system, as it was unable to be tested and the owner said there were problems with it. I would look at it as if there was no sprinkler system and decide how much difference that would have made in your offer.
Tom,
you pretty much nailed it.....
1. Electric Panel.... definitely needs to go.... so about 2K expense.... either replace it or give me the $$. This is because we have public documentation about the unit being a part of a recall and a fire hazard.
2. Oil Tank.... I'm not asking them to replace it, but I will at the very least need a certificate from the owner that the tank is in good shape and there is no sign of spills. This is only because the owner has refused to touch the tank. (After I buy the house its totally my responsibility.... worst case scenario might be $100k to decontaminate the soil after a leak )
3. Sprinklers.... I need them to demonstrate that its working before closing or put some money in escrow.
I don't think these are unreasonable requests.... and oh on the +- 5k range, on 2nd and 3rd thoughts I feel we are at the right price right now after the concessions.
Speaking of the electrical panel/service, what is the service amperage to the house? 100 or 200 amp service?
Some older homes may still only have 100 amp service especially if it doesn't have updated amenities such as central air.
100 amp service is really inadequate nowadays and if you would need or want to install central air in the future you will absolutely need to upgrade.
Upgrading service is more expensive than simply replacing a panel.
Your inspector's report will specify whether the house has 100 or 200 amp service going to it.
Yes I know its a 100 amp, and if they are not ready to replace the panel then I'll plan to upgrade it by putting in some more $$$ when I use their money to replace the panel.
Just curious, Zulu. You already said that the owner was unwilling to do anything about these matters. Are you going to walk away if they refuse? Also, what price range is the home that we are talking about. $5,000 is a lot different on a 200K home then and 800K home.
Just curious, Zulu. You already said that the owner was unwilling to do anything about these matters. Are you going to walk away if they refuse? Also, what price range is the home that we are talking about. $5,000 is a lot different on a 200K home then and 800K home.
I said the owner refused to move the tank above ground. The rest I'll have to see. I got the formal report today and a see a few minor stuff in addition to what I mentioned, but I'm not going to worry that much. The house is 345k. I'm not sure if I will, but walking away is a definite possibility, it all depends on the negotiations.
I know where you are coming from Tom.... and I don't think this is my "dream" house so for me $5000 is $5000 and its the same for the seller too.... and I agree wholeheartedly that if you feel this is "THE" house for you then its better to just pay up and enjoy the pride of owning it.
I wasn't trying to influence you at all. On a 345K home, 5,000 can be a lot of difference. I'm just always interested in buyer and seller psychology. Best of luck with the negotiation.
I spoke to the sellers realtor today, she told me point blank to my face that in her 10 years of experience, no buyer ever requested the soil test OR asked the seller to move the tank above ground.
That was a learning experience for me, regardless I want to find out whats is really the issue at hand.... is it that the owner does not want to do the test at all ? OR he just does not want to pay for it.... I hope its the latter as we can work something out, but if its the former, then I have a feeling that I'll be walking.
Depending on the actual type of test, it can be expensive. About ten years ago I sold a piece of property that was adjacent to a gas station and the first prospective buyer made their offer contingent upon a satisfactory Phase II Soil Test to be done at my expense. My lawyer advised me against allowing it not only because of the cost (almost $1000 at the time) but because if it turned up a problem I would be required to disclose the presence of the contaminant to ALL future prospective buyers and he felt that it would not be worth the risk of possibly having such a KNOWN big disadvantage to the property.
Whereas if the test was not done, well, "ignorance is bliss" as they say.
I agreed with him and declined the offer. Another buyer eventually came along, made an offer without mentioning wanting a soil test, and ended up buying it.
I disagree with the seller's realtor's statement that "in ten years ..." no seller of hers has ever been asked to relocate a buried tank. Buried tanks have become a big issue in recent years, especially since many insurance companies are now turning down coverage if there is one. The house I sold in 2000 had a buried oil tank and the buyer made exactly that request. They were really good buyers, all cash and willing to wait five months to close, if I needed the extra time, to boot; so I said yes, had the buried tank abandoned and an above-ground one installed. IIRC it cost about $1200 at the time. I was lucky in that there was then a NY State Income Tax Credit for the abandonment of a buried tank and another credit for the installation of a non-buried one; I think the two credits together came to about $600 which was half the cost of the tank work.
Sounds like the sellers realtor has not come up against very many savvy buyers lately.
A leaking oil tank is a HUGE liability for the owner of the property. If you have any question about this tank's integrity (or the current owners for that matter) get it tested at your expense before you buy the property. I believe they can do a pressure test on the tank to see if it is leaking. If you want the house that much, then pay for the testing (try to get the current owner's to pay?). If you don't want the house that much, then walk away.
You could role the dice and take your chances. Not sure what your chances are though. How old is the tank? I'd call the NYDEP's underground tank unit and ask some questions. They may be able to give you more information to base your descision.
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