You should discuss this with your agent after you have an opportunity to get estimates from a licensed general contractor and consider cancelling the purchase in case your contingencies have not been removed.
United America Realty
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Since you purchased a "fixer-upper" you should have been able to purchase that home at a very nice discount. I'm hoping that is the case for you. I also am hoping you have a buyer agent..who would be worth their weight in GOLD for you right now.
Normally a seller will discount a house, and that discount is supposed to cover whatever work is needed on the property. When an inspection reveals unusual additional expenses, this expense is normally taken care of in negotiations in the contingency period..... BEFORE escrow,and not during or after!
My limited advice would be to try to get your leverage back in the sale.
I would look at the purchase agreement and see if in the agreement the terms of the sale are stated â€œAs Isâ€ or the condition that you first assumed the property was in. If it is â€œAs Isâ€ see if there are any special conditions or terms that apply to â€œAs Isâ€ in the Purchase Agreement or your Escrow Documents.
You may now write all parties and state that you have reconsidered the purchase price based on the 25K dollars extra as not being a fair market rate and at the time of the agreement this was not clear to you.
See what they say. If at this point any party says, â€œYou have an agreement.â€
State that you would like this to be reconsidered minus the $25K.
Keep in mind the fair asking price was made lower to be fair based on the state of the property.!
Of course they will say, â€œNo.â€
Then state that the seller and the appraisal had misrepresented the term â€œAs Isâ€ in the condition of the property.
Now if the terms of your contracts do not state â€œAs Isâ€ and only the condition of the property. Do the same thing based on the Fair Market Value not yet mentioning the actual condition until they respond to your request. Then say the same thing as a above, "They miss represented the condition of the property at the time of the agreement."
It is, â€œAs Is Stated.â€
Which in your case was not the case. Others may say there is nothing you can do there is always something you can do so give this a try if you like.
I have also not represented that you follow this advice, as I have not reviewed the actual documents so this is just a suggestion in a public forum for review and not a professional consulted opinion in the matter.
Hawthorne Capital Corp.
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