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So I was looking for a 4 bedroom house near Edison NJ, found one bi-level listed as a 4/2.5 that I liked, and made an offer on it of $415K+, it was accepted. Like most bi-levels in the area, the 1st floor of the house is half below grade. It has a family room, 4th bedroom , half bath, laundry, utility rooms and access to the garage. The 2nd floor has 3 bedrooms, living room, bathroom and a kitchen on the with access to a deck in the backyard. Turns out during the inspection that the 4th bedroom on the 1st floor can't be considered a bedroom as it doesn't have a large enough window to be considered a 2nd means of egress? The entire 4th bedroom is below grade except for the 2 small windows that are just above grade underneath the deck? Knowing now that the 4th bedroom can't be considered a actual bedroom, how much can I ask the seller to reduce the price by or how much credit can I ask the seller for? I assume 2-3% of the purchase price? What are your thoughts on this issue? I added a link to the picture of the 4th bedroom for reference. Thanks, and all advice is appreciated.
You can ask but doesn't mean the seller will accept. I think this issue does allow you to void the contract from your end but it does not mean any sort of price concession. It is not like you are going to spend thousands of dollars to have the room legally changed to a bedroom by digging up dirt around the outside wall of the bedroom... even if you do that's at your discretion not seller's.
You can try lowering the offer and see if the seller budges but if I were him I wouldn't move on the price. But again it also depends on how long the house has been on the market, how many comparable houses are up for sale in the area, how desperate both parties are, etc...
As the other poster stated, it seems like you have grounds to get out of the contract. Everything else is negotiation. Not sure why you assume a discount of 2-3% of the purchase price.
You can ask but doesn't mean the seller will accept. I think this issue does allow you to void the contract from your end but it does not mean any sort of price concession. It is not like you are going to spend thousands of dollars to have the room legally changed to a bedroom by digging up dirt around the outside wall of the bedroom... even if you do that's at your discretion not seller's.
You can try lowering the offer and see if the seller budges but if I were him I wouldn't move on the price. But again it also depends on how long the house has been on the market, how many comparable houses are up for sale in the area, how desperate both parties are, etc...
The house has been on the market for about a month and there are 3 other houses on the market within the surrounding streets. Some list it as a 3 bed 2.5 bath, and others list it as 4 bed 2.5 bath. The issue is that when I try to sell it, its gonna be the same issue that pops up. I placed the offer because it was 4 bedrooms but after the attorney review completed and during inspection, it comes out that this is not a bedroom. I believe this would affect the price in some way.
As the other poster stated, it seems like you have grounds to get out of the contract. Everything else is negotiation. Not sure why you assume a discount of 2-3% of the purchase price.
A 3 bed house in that are would go for about approx 400K. I assumed 2-3% since the 4th "Bedroom" can't be marketed as a bedroom but rather as a office or something now. Would you still be able to back out if the attorney review has been completed?
Is the price comparable to a 3 bedroom in that area?
No, that's the issue. I don't believe anyone would pay 415K+ for a 3 bedroom house. I assume could lower the price a couple thousands since its not technically not a bedroom but probably an office or something. When it comes time to sell, I'm sure this issue will rise again and don't think anyone will pay 415+ for a legal 3 bedroom per code.
A 3 bed house in that are would go for about approx 400K. I assumed 2-3% since the 4th "Bedroom" can't be marketed as a bedroom but rather as a office or something now. Would you still be able to back out if the attorney review has been completed?
I think you can still back out, but your attorney should really guide you on that part of the issue.
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