Too Late To Negotiate? (contingency, appraisal, negotiation, attorney)

[OROSO]

This is my first home purchase, so forgive my ignorance here, but I was wondering if it's really too late to negotiate a repair with the seller. The issue is that we obtained an inspection through a company our realtor recommended and in the report he mentioned the house has a Federal Pacific electrical panel and noted that he did not observe any overheating. This should have been a red flag, but it was not listed under items requiring repair, so at the time I was like "Okay great, no overheating. That sounds good." Instead, I focused on the list of recommended repairs and worked with my realtor to negotiate the repairs with the seller.

Since then, I have learned that Federal Pacific panels are a significant issue, and that inspectors and electricians will typically recommend a replacement, so I contacted my realtor to ask if it was too late to negotiate this into our contract, and received a very curt reply about how the time for dealing has passed, and how the inspector didn't note it as an issue so therefore it isn't. Well, I feel the inspection was misleading and understated the issue, but it's certainly my own fault for not noticing sooner. However, we're still waiting for the home appraisal and we aren't scheduled to close until the end of the month, so I'm wondering if it's truly too late?

[manderly6]

What does your contract say? I know in my transactions there were deadlines for both getting an inspection and submitting repair requests related to the inspection. If the dates has passed I would assume that the short answer is no, you really can't ask for this now.

[rjrcm]

Originally Posted by manderly6

What does your contract say? ...

Right, the answer is in your contract. Of course, you can still ask and if the seller agrees, you can amend the contract to allow it.

[bbronston]

In Florida, the inspection serves two purposes. First, it finds things that aren't functioning properly which are then generally repaired by the seller as long as the repair cost doesn't excede the agreed upon maximum. The second purpose, though, is that it calls out the things that don't require repair but which still should be known by the buyer. I would think that this panel is like that. It is still functioning properly but the company has a history and, hopefully, that was the call out by the inspector.

[Bill Keegan]

Originally Posted by OROSO

This is my first home purchase, so forgive my ignorance here, but I was wondering if it's really too late to negotiate a repair with the seller. The issue is that we obtained an inspection through a company our realtor recommended and in the report he mentioned the house has a Federal Pacific electrical panel and noted that he did not observe any overheating. This should have been a red flag, but it was not listed under items requiring repair, so at the time I was like "Okay great, no overheating. That sounds good." Instead, I focused on the list of recommended repairs and worked with my realtor to negotiate the repairs with the seller.

Since then, I have learned that Federal Pacific panels are a significant issue, and that inspectors and electricians will typically recommend a replacement, so I contacted my realtor to ask if it was too late to negotiate this into our contract, and received a very curt reply about how the time for dealing has passed, and how the inspector didn't note it as an issue so therefore it isn't. Well, I feel the inspection was misleading and understated the issue, but it's certainly my own fault for not noticing sooner. However, we're still waiting for the home appraisal and we aren't scheduled to close until the end of the month, so I'm wondering if it's truly too late?

As others have already said, the deadline for negotiation inspection issues should be spelled out in the contract. If you've missed it, you may not be able to have the seller address the issue at all. However, if you haven't had a particularly contentious relationship so far with the seller, and if you present the issue to them in a non hostile way, and show them the very clear information that this circuit breaker panel may be dangerous, they may be willing to participate in the correction of this flaw. Never hurts to ask, right?

As a side note, I'd be a little peeved at that inspector. If he knew enough to note that this box showed no signs of overheating, it appears he know that the circuit boxes from Federal Pacific are a potential problem. He absolutely should have said something to you about the potential problem.

[OROSO]

Thanks for the info everyone. I checked my contract and it's clearly spelled out I had 10 days to negotiate repairs. My realtor doesn't appear too keen on hitting the sellers up for more money, so I guess I'll have to wait and see if the appraiser points it out or else eat the grand it will cost to have it replaced after the purchase.

[manderly6]

Originally Posted by OROSO

Thanks for the info everyone. I checked my contract and it's clearly spelled out I had 10 days to negotiate repairs. My realtor doesn't appear too keen on hitting the sellers up for more money, so I guess I'll have to wait and see if the appraiser points it out or else eat the grand it will cost to have it replaced after the purchase.

I have to tell you as a seller I would not have agreed (or at least not right off the bat) to replace something if it was currently functioning and wasn't recalled. I'm not sure it would have made a difference even if you would have pointed it out.

[Bill Keegan]

Originally Posted by manderly6

I have to tell you as a seller I would not have agreed (or at least not right off the bat) to replace something if it was currently functioning and wasn't recalled. I'm not sure it would have made a difference even if you would have pointed it out.

Many sellers, when presented with clear & incontrovertible evidence of a known potential problem like this one, will be willing to help deal with correcting it. Not all, but many. I represented a buyer recently in a home purchase where the inspector pointed out that the breaker panel was one that was known to have problems, and presented a possible fire risk. The buyer, through the attorney letter dealing with the inspection, asked the seller to either repair or provide money for the buyer to repair the issue. We all expected a response similar to what you say yours would have been. Surprise...We learned that the seller had brought in an electrician to replace it the day after our inspector pointed it out, as she had not known it was an issue before and didn't want that risk to continue while she & her two kids lived in the house.

[OROSO]

I appreciate the perspective. In this case, had I known it was an issue, I would have requested a replacement and would have walked from the deal if it was declined. After all the costs associated with the purchase, dropping another grand on repairs will be difficult, but I guess that's what I signed up for.

[rational1]

> Many sellers, when presented with clear & incontrovertible evidence of a known potential problem like this one, will be willing to help deal with correcting it.

OK, but I would NOT be willing to negotiate a correction after the inspection contingency has been released.

I would regard such a request as a sign of a troublesome buyer and I would then try to hold the buyer to the letter of the contract.