After inspection, any room for negotiation?

Asked by Jan1234, Tampa, FL Fri Jul 19, 2013

Offered $160K for 1988 wood house on acreage with detached wood 2-story garage & outbuildings listed for $169K. Seller insisted on $165K. She signed yesterday. Did not get a seller's disclosure even though there was another offer that expired 5 days ago.

Had inspection today. House A/C (from 1988) is shot/not cooling properly. Circuit panel will need electrician to fix (wiring). Tie-in to attached garage roof needs repair. 2-story garage has visible subterranean termite damage on the door jamb and raccoon hole and droppings in the ceiling area. Other outbuilding has leaky metal roof and extensive water damage on the walls (they need replacement).

Also, minor issue of microwave listed in contract missing and washer/dryers listed don't appear to work.

Contract states that Buyer accepts physical condition of property and is responsible for any repairs required by the Lender. Agent stated they had an offer (unaccepted) from 6 weeks ago beside the lapsed offer. Help?

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James Wehner, Agent, Scottsdale, AZ
Fri Jul 19, 2013
BEST ANSWER
It depends on what your contract language states. Is there a due diligence period? Are you allowed to cancel if you don't approve of the condition of the home after inspection?

Even though the contract states the buyer accepts the condition, you can still ask the seller to make the repairs or get credit for them. If the seller is unwilling to make the repairs or credit for them, you could cancel. Then possibly renegotiate a new offer.

Good luck!
0 votes
Jan1234, Home Buyer, Tampa, FL
Sat Jul 20, 2013
Thanks for your quick responses! The contract gave 10 days to get inspection and deliver written notice to terminate. Yesterday was day 1 and we were sending the deposit today.

Besides all the repairs, contract states that the debris left is for us to remove - the house is empty but the detached garage could fill a small u-haul (if packed tightly). So that would be an added expense. It may be best to walk and be out the inspection fee.

I don't know if repairs were reflected in the price. The property was as-is and if in good condition would be worth the 163K to me. Seller did not want to help with closing costs and the $4K in reduction of sale price was her only concession. The county appraiser shows the property as selling for $100K In 1998 to the owner, who added some of the outbuildings (the ones that are now falling apart and termite-damaged).

Total digress - it seems the buyer is always at the short end of the stick in real estate transactions. The inspection was close to $500 because of the multiple buildings, would have to pay for an appraisal, termite inspection, well inspection. Walk away. Next buyer is out the same for inspections because seller doesn't let them know those findings.

Still feeling burned from an attempt to buy a short sale back in Feb; house was ok, offered full price. Finally at July 1 and some extensions, said this is too much of a wait. Still waiting for our $5K deposit to be refunded on that house.

Hate the home buying process. Thanks again for all your great answers.
0 votes
allan erps,A…, Agent, Pearl River, NY
Sat Jul 20, 2013
Most homes in my area would not be approved for a Mortgage if there is Termite damage and not remediated.
0 votes
Anna M Brocco, Agent, Williston Park, NY
Sat Jul 20, 2013
What is your agent, and or attorney advising...were the repairs already reflected in the price....
0 votes
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