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Old 07-16-2017, 04:33 PM
 
8 posts, read 4,710 times
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Hello, I am currently in escrow as a buyer in California, San Diego for a 2bd, 2bath apt. My offer was accepted as 15k below of what similar fixed units are selling for. As i looked at the property we knew there were many things that had to be fixed, the bigger expenses being new carpet/ flooring (heavily wore out and stained) and completely new kitchen cabinets since they have not been touched since the construction of the home 35 years ago. We were ok with this and our offer was taking into consideration the needed fixes. We thought this might be the bigger things in the property that needed attention.

After the inspection a lot of things came up as expected since the property has not been well taken care of but a few more major things popped up and i do not know what is something acceptable to ask considering the lower price in this unit.

Things that we were not expecting:
10 year old water heater that its near the end of it's life, 35 year old rusty furnace causing very low air flow in vents, replacement recommended by inspector, no water flow in master shower, on second shower the tiles are loose meaning water damage but we don't know at what extent until we dig further and this could be affecting downstairs neighbor. A closer look at the fuse box showed everything was completely painted on, creating a fire hazard, and a lot of rusty pipes but this might be property of HOA. The fridge was also included in the contract but when we opened it during the inspection it was hotter inside than in the apt, it was plugged in and "functioning" and will need to be replaced.

Some minor things: windows need to be replaced and many missing screen of patio doors and all windows show condensation, balcony door not functioning, some lights do not have active electricity, some leaks in the bathroom sinks, bathroom flooring shows heavy water damage, and many other small things.

We do not want to be picky and knew this unit needed fixing but the property is not being sold "as is".

I was thinking on asking for a credit for the water heater and probably the furnace and we will repair once they completely die down. Also a small credit for the fridge since we thought we would be able to use that fridge until we were ready to do the complete kitchen remodel and it will have to be replaced as soon as we move in.

Things that i do want the seller to check is the master bath since he remodeled that bathroom and there is no water flow as well as the damage in second shower with the loose tiles. Also, repair the fire hazard in the fuse box.

Could this be reasonable? should we walk out of this property if seller does not agree with our requests? after all the repairs we are calculating we will spend around 25k+ plus time before we can move in. We will be underwater in this property if we need to do all this repairs.

I just would like an opinion of people with more experience so i can reach a decision soon. what would be a reasonable amount of credit to ask for? I need to remove my inspection contingency in 4 days.
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Old 07-16-2017, 05:28 PM
 
Location: Bloomington IN
7,258 posts, read 8,907,285 times
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As for the amount of the credit, it will be hard for anyone to specify unless they live in San Diego. Prices vary throughout the country and even in the state of CA.

Ignore the water heater and plan to replace it yourself. Just because it's nearing the end of it's life according to the inspector doesn't mean it won't last another 5 years. It's also likely to be the least expensive fix.

Focus on the safety issue first--the electric issues. Next, in my opinion would be the water damage bathroom wall because there could be mold behind it and it's likely the result of an active leak. Probably I ask for the Master bath shower to be repaired and other pluming leaks to be fixed. Last in my opinion would be the furnace. How old is the unit? Did they disclose the age of the furnace?

Is this part of an HOA? If so, it's likely that the HOA is responsible for the windows and doors. Ask about it.

If the estimated spending will really put you upside down, then walk.
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Old 07-16-2017, 06:14 PM
 
Location: The Triad (NC)
31,179 posts, read 68,259,396 times
Reputation: 37034
Quote:
Originally Posted by esmea View Post
What are reasonable fixes to ask seller?
Anything that is actually needed ... but especially so all the silly little things that they
should have taken care of before putting the sign in the yard.

From there it's about dollar cost of the bigger jobs vs asking price.
If the ask price has room in it to cover the new roof or hvac that are needed...
you're better off getting a deduct and doing that work yourself.
---

As to your specific list... you figure it out which is which.
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Old 07-16-2017, 06:27 PM
 
Location: Des Moines Metro
5,105 posts, read 6,827,154 times
Reputation: 9693
Quote:
Originally Posted by esmea View Post
Could this be reasonable? should we walk out of this property if seller does not agree with our requests? after all the repairs we are calculating we will spend around 25k+ plus time before we can move in. We will be underwater in this property if we need to do all this repairs.
25K+ is pretty high. Don't you have a clause in your contract along the lines of "subject to results of the inspection"? That might get you out of this purchase.

OP, this seems like a conversation you should be having with your realtor.

I'd walk, unless the sellers was willing to do the work or greatly lower the price.
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Old 07-16-2017, 07:04 PM
 
Location: under the beautiful Carolina blue
19,370 posts, read 28,924,983 times
Reputation: 15196
Quote:
Originally Posted by rrah View Post
Focus on the safety issue first--the electric issues. .
Agree with this....also agree about asking your realtor, who is the local expert. But I'd be researching this HOA/neighborhood like crazy....if some of this stuff is the HOA responsibility and has been left to go this far that is a HUGE red flag.
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Old 07-16-2017, 07:22 PM
 
Location: Rochester, WA
8,341 posts, read 4,959,650 times
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People don't usually replace old but functioning systems, just because they're old, they wait for them to die. I would plan on having to replace the water heater yourself someday, and the furnace.

The most concerning repair you mention is the leaking bathroom tile, and this is particularly worrisome because in most condominiums, YOU are responsible for water damage to lower units. Not the HOA. No matter what you do, don't let that one go. Redo the bathroom. Put in the best underlayment you can do. Don't mess around with water leakage in a condo.

Whether this homeowner will or can afford to do any of these repairs is the question of the hour. Do you know anything about the seller? Distressed sale? Vacant? Or lived in still? Usually when a home is in chronic disrepair, there isn't money there to ask the seller to fix things either. They might do a price negotiation, but then, depending on your financing, you may have to come up with it in cash, or do a rehab loan. No way for us to know if they are in a position to do these repairs, or whether the price you have agreed to, already accounts for them, given your local market. These are questions for your realtor.
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Old 07-16-2017, 10:03 PM
 
906 posts, read 618,603 times
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I don't see anything unreasonable in requesting a credit at closing fir those issues.


How badly do you want this place?


You can get a nice used fridge off Craigslist/Facebook/etc. for $300.

The water heater is about an $800 fix for a 40 gallon gas heater.

Fixing a water leak and redoing the bathroom tile is a couple grand.

Furnace is around $5000.

The subfloor in the bathroom could run into other issues.

The electrical issues could run into around $3000 or it could be a lot cheaper.




Are you getting this place for a steal? I'm not seeing $25k in repairs. Who is giving you that estimate?
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Old 07-17-2017, 01:38 AM
 
8 posts, read 4,710 times
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Quote:
Originally Posted by rrah View Post


Focus on the safety issue first--the electric issues. Next, in my opinion would be the water damage bathroom wall because there could be mold behind it and it's likely the result of an active leak. Probably I ask for the Master bath shower to be repaired and other pluming leaks to be fixed. Last in my opinion would be the furnace. How old is the unit? Did they disclose the age of the furnace?

Is this part of an HOA? If so, it's likely that the HOA is responsible for the windows and doors. Ask about it.

If the estimated spending will really put you upside down, then walk.
The electric safety issue is something that will definitely be discussed and has to be fixed before we close the deal, the inspector was very clear that it was a very dangerous fire hazard. I really want to push on the water damage bathroom tiles because it seems like it could be really bad and i do not want it to be a surprise when we try to fix it. They did not disclose the age of the furnace but the inspector said it was the original installed so it should be 35 yrs old.

The unit is part of an HOA and i will definitely look into the doors and the windows, thank you so much for this suggestion.


Quote:
Originally Posted by Meemur View Post
25K+ is pretty high. Don't you have a clause in your contract along the lines of "subject to results of the inspection"? That might get you out of this purchase.

OP, this seems like a conversation you should be having with your realtor.

I'd walk, unless the sellers was willing to do the work or greatly lower the price.
Quote:
Originally Posted by twingles View Post
Agree with this....also agree about asking your realtor, who is the local expert. But I'd be researching this HOA/neighborhood like crazy....if some of this stuff is the HOA responsibility and has been left to go this far that is a HUGE red flag.
I am having a chat with my agent in 2 days, we are going over all the inspection and pest results and talking about what to do with this results. I do have a inspection clause and i can walk away at any moment since i need to remove it before moving forward with the purchase. I have tried researching reviews about this HOA but i cannot find much online and i have also talked to neighbors but most are renters who would not know about HOA ways of handling the properties.

Quote:
Originally Posted by Diana Holbrook View Post

The most concerning repair you mention is the leaking bathroom tile, and this is particularly worrisome because in most condominiums, YOU are responsible for water damage to lower units. Not the HOA. No matter what you do, don't let that one go. Redo the bathroom. Put in the best underlayment you can do. Don't mess around with water leakage in a condo.

Whether this homeowner will or can afford to do any of these repairs is the question of the hour. Do you know anything about the seller? Distressed sale? Vacant? Or lived in still? Usually when a home is in chronic disrepair, there isn't money there to ask the seller to fix things either. They might do a price negotiation, but then, depending on your financing, you may have to come up with it in cash, or do a rehab loan. No way for us to know if they are in a position to do these repairs, or whether the price you have agreed to, already accounts for them, given your local market. These are questions for your realtor.
The leaking bathroom tile really worries me because as you mentioned, it worries me that the downstairs unit is suffering without anyone knowing. At first sight it might look like just a couple of tiles have to be replaced but it makes me nervous that i wont know until its my property and i have a feeling that the owner will not want to do anything to the unit.

The owner still has many items in the house, so it is considered "owner occupied" but he is not actively living in the unit. Seems like he just wants to get rid of the unit and does not want to have anything to do with it. Has neglected to take care of many small things that could easily be repaired and the house is also very dirty which I'm sure decreased the amount of potential offers he could have gotten.


Thank you for all the suggestions. I just wanted different opinions other than my agent's to see what is worth to push for. Will definitely focus on the bathrooms and the electric problem before anything else. If not i will be walking away because it can be very big problems down the road.
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Old 07-17-2017, 01:58 AM
 
8 posts, read 4,710 times
Reputation: 15
Quote:
Originally Posted by Campfires View Post
I don't see anything unreasonable in requesting a credit at closing fir those issues.


How badly do you want this place?


You can get a nice used fridge off Craigslist/Facebook/etc. for $300.

The water heater is about an $800 fix for a 40 gallon gas heater.

Fixing a water leak and redoing the bathroom tile is a couple grand.

Furnace is around $5000.

The subfloor in the bathroom could run into other issues.

The electrical issues could run into around $3000 or it could be a lot cheaper.




Are you getting this place for a steal? I'm not seeing $25k in repairs. Who is giving you that estimate?
I do not want this place that bad, it seemed like it could be a great investment property that could become a rental in a couple of years since its in a very desirable and central area, but i will be ok if the agreement doesn't go thru.

If i have to redo and fix both bathrooms it could be a very big expense. The master shower has a very faint water flow, it looks like a leak. This could be either because of the faucet itself or it could be cause by a piping problem which would be even more expensive. Either way i would have to dig deeper to find out. The second bathroom has the loose tiles and if it has mold trying to fix that could be expensive + the expense of putting everything back together to make it a functional bath.

If i am responsible for the windows then this could be a big expense trying to replace them and all of them need new screens.

There is also all the flooring in the entire unit that has to be replaced. Currently it has a very stained carpet and has a very strong odor. I am putting laminate since i have pets and it's easier to clean than carpet. This is another couple thousands.

The most expensive repair would be the kitchen cabinetry which shows very heavy wear and water damage under the sink, It's 35 years old and there is damage everywhere. Everything in the kitchen, except for the appliances (but their are very old too) are the age of the home, 35 years old, and it definitely needs to be repaired.

Overall, i had budgeted ~15k for all the small things in the house, including the 1-2 windows, the new flooring, and the new kitchen cabinets. My offer reflects this amount and it is 15k less than a similar unit with a modern kitchen and good flooring is going for. Now i have budgeted another 10k for the things you have mentioned above which sounds about right, depending on how much the bathrooms can cost me.

I am very undecided to move forward now since it could be a very bad investment if the owner does not want to fix anything.
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Old 07-17-2017, 04:16 AM
 
16,096 posts, read 21,344,094 times
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In addition to the ones that you've already mentioned....I would add the water damaged area.....That could be major, so a further inspection and cost estimates should be part of your ask.

And, no....Now is the time that you should ask....And get either the repairs or the compensation for anything structural.

Walk away if the owner refuses.
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