Home Buying in Amherst>Question Details

Krishna Koth…, Home Buyer in Amherst, NY

Is this house worth it?

Asked by Krishna Kothamasu, Amherst, NY Tue Nov 13, 2012

Recently put in a bid on a house in Getzville, NY. I like the style of the house and the other amentities such as a Gas Stove, Attached Garage, Force Air, Basement etc. and seems to be unqiue in it's layout. Just had an inspection done yesterday and one of the key items pointed out was that the home will probably require a new furnace given that it's 40 years old. The house also needs updating such as new paint, wall paper removal, fixing of dry wall where there seems to have been some mositure coming in and two cracks in the basement (which I am having a structural engineer examine tomorrow). The offered price was $138,000 for the home, was $135,000 but I gave in, and given the possible furnace replacement and other work needed is this house worth it? I am planning on asking the owner for a credit but assuming it'll be a stiff no. Could I walk away and expect renegoiate in a few weeks when the market is stall? or will I end up alienating the buyer?

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5
Patti Draper’s answer
Hello Krishna -
You have said nothing about the size of the home, how many BRs there are, or baths. In Getzville, NY you could be talking a very good bargain at 138K. It may have been priced that way BECAUSE the furnace was 40 yrs old and because of the cracks are in the basement. It could be that this house could or would be priced at 250-350K IF everything you mentioned was perfect.
Who is your agent? You should (and I hope that you did) have your own agent to advise you in this matter. If you have been negotiating with the Seller's agent you have to know that their first feduciary duty is to the clent they signed a contract with, their seller. A buyer's agent ( your own representation)could do a comparative market analysis and let you know if you're getting a bargain or if perhaps you are not. I work in Getzville and all over western NY so if you do not have your own buyer agent, please feel free to call me and I will give you some quick figures. If you DO have a buyer agent use them - they should be helping you with this decision and doing the negotiating for you.
Patti V. Draper, Associate Broker, SRES, Direct : 716-258-0270
M.J. Peterson Real Estate, Amherst, NY 14228 Office - 689-7800
0 votes Thank Flag Link Tue Nov 13, 2012
Hello wanted to include that info. but ran out of room. The house is 1730 Sqft, built in 1972, front roof is 7 years old, rear roof is 2 years old, complete tear off I believe. It's a tri level home, 3 bedrooms, 1st 14 X 11, 2nd 14 X 7, 3rd 10 X 11, has a nice deck with a walk up basement.

I do have a buyers agent and just wanted some opinions besides that of my own agent cause it seems like they just want to have the sale go through. Inclusive of the furnace looks like I'll have to spend about $6,000 to make this place comfortable to live in. The $138K is actually 4K above assessed value.
Flag Wed Nov 14, 2012
As both a Realtor and Home Owner in Getzville. I think that you have done your due diligence by hiring a Licensed Home Inspector and consulting with a Structural Engineer. Analyze the value of your CMA. Your Realtor should have provided this useful and powerful document when you became serious about the purchase of this property. This will be be the best barometer of other home values in your neighborhood. Determine if the price of updating and repairs of your intended purchase supersedes the values of the immediate neighborhood.

Your Realtor will advise you of the time frame in which you can rescind your offer.

Getzville is a wonderful place to live.

Good Luck!

Denice M Taylor
Affordable Dreams Real Estate
Getzville, New York
716-688-6560
0 votes Thank Flag Link Tue Nov 13, 2012
Hello Krishna. Given your current situation, maybe your best option would be to try to get a credit from the Seller, renegotiate the purchase price, try to get the Seller to make the repairs, OR try to get cash from the seller at closing for the repairs.

Are you truly certain that you want to forget the home entirely and just walk away. You, yourself said that you like the style of the home and the other amenities. There is no perfect home for anyone, and in just about all cases, when a purchaser moves into a home--they will have to paint, change flooring, and change all the ancient or unwanted designs the previous owner left behind.

You should truly discuss this further with your Agent...However, do not feel as though you are being forced. The option is your, and your Agent is just there to assist.

I hope this answered your question! If you have any further questions, please feel free to contact me by the ways below.

Wishing you all the best,


De Vonte Williamson
Licensed Real Estate Salesperson
Proudly Serving Long Island
Coldwell Banker Residential
Direct:(631)638-6193
Mobile: (631)384-3695
http://cbmoves.com/DeVonte.Williamson
http://devontesellsny.wordpress.com/
DeVonte.Williamson@cbmoves.com
0 votes Thank Flag Link Tue Nov 13, 2012
Krishna,

It sounds like you have already utilized the expertise of a qualified home inspector and you are strongly encouraged to consult with your attorney before making any decision(s). This forum is not the place for opinions of value as they are just that, opinions, and bear no relevance to your transaction.

You should also consult with you realtor regarding walking away following the results of the inspection. Time is of the essence. If you choose to walk away, expecting to renegotiate again a few weeks later is unrealistic. Yes, you will most definitely alienate the seller.

Ask the seller for the credit and if they decline, your alternatives are to move forward as agreed or begin a new search for your next home. Items such as paint, wallpaper and minor drywall repairs are cosmetic in nature and most likely have already been factored into the selling price. The other items require more careful consideration.

If you'd care to discuss this further, please feel free to call me at any time.

Ron Fronckowiak
Licensed Mortgage Professional
R & R FUNDING, INC.
Lancaster NY
716-685-9696
Web Reference: http://www.RandRFunding.com
0 votes Thank Flag Link Tue Nov 13, 2012
I've already decided that if the house is not structural sound I am walking away. That's one thing I don't want to deal with. From what my realtor has told me so far, the extent of what I'll lose are the fees I've spent on the inspection and some other specialist fees I'll be incurring in the next day or two.
Flag Tue Nov 13, 2012
What is your agent advising...does the property's list price reflect the necessary repairs....what do comps suggest, recently sold similar properties in the immediate area...
0 votes Thank Flag Link Tue Nov 13, 2012
My agent was trying to get me to hold out for the buyer to come down a bit but I jumped the gun, which I know is my fault, and didn't wait for the seller to experience a slow selling season.

My agent is convinced that the seller will not even entertain a credit and that I am stuck with the offer and the pending repairs. comps suggest that the agreed upon price is slightly above average.
Flag Tue Nov 13, 2012
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