Molly, Home Buyer in Milwaukee, WI

I was in a multiple offer situation and am now under contract after agreeing to the full asking price with $2000 in closing. The home inspection

Asked by Molly, Milwaukee, WI Sun Aug 11, 2013

notes the furnace works like a champ but is end of life and the model number is part of the Bryant class action lawsuit. The furnace also listed dates of check ups with the last one 8 months ago. The A/C unit also works great but is end of life. Do I address these at all with the seller? If so what is appropriate?

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6
Sarah Floyd, Agent, Wauwatosa, WI
Mon Aug 12, 2013
Molly, you should be asking your Realtor about this if you are working with one. If you have a home inspection contingency, you can address your concerns. You could negotiate a home warranty or possibly replace the furnace. If you don't have this contingency, you can't bring it up.

Sarah Floyd
1 vote
None, Agent, Summit, WI
Sun Aug 11, 2013
Hi Molly,

The home inspection contingency is to look for defects in a home. A defect is defined as something that can significantly threaten the safety of the home's occupants, the value of the home or the life of the home. Key word "significantly".

Only an attorney can tell you if what you stated was a defect, but I tips towards no. Both are working properly and apparently cause no threat as stated above. These would not be "walk away" items.

That said, you could ask for anything in your home inspection contingency, even if that were to pain the entire house pink. It is up to the seller to decide to do it for you. Were I the seller's agent, I would advise them that the equipment may be old but it is working as expected. They don't "need" to fix it to keep you in the deal. They likely won't fit the definition of defect either, so these items would probably not be firm grounds for canceling the deal.

My best advice to you is if the house came out great on the home inspection stay in the deal and budget for a new furnace and central air. If you maintain the existing units well, they may last a long, long time. The phrase your home inspector probably used is "at the end of their EXPECTED life". These things don't just croak after a certain amount of time. Maintain it and you could get many more years out of it.

Best of luck.

Jeff
1 vote
Molly,
As I said, you could ask for anything you want. However, the seller may not agree to your request and, if the roof is still in working order but just old, then may not grant it in which case you will likely be buying the house as is.

However, you do have an FHA loan and they have separate criteria and may not grant the loan based upon the roof's age. This would come up in the financing contingency which is usually at around the 30 days after accepted offer timeframe. It is best for you to consult both the agent who wrote your offer as well as your loan officer for guidance on these matters. They have more knowledge of your specific situation than any of us.

Good luck!
Flag Mon Aug 12, 2013
Is any of what I mentioned red flags for my FHA loan to not go through?
Flag Sun Aug 11, 2013
Jeff, thanks so much for your insight. The house also needs a new roof which I didn't mention because I know I will be asking money back to repair. Over all the house is solid and in good condition. There is a fire wall in the garage that joining with the house that has two small holes and the fireplace flue needs repair. In summary, I was going to not ask for anything but the cost of the roof repair. I feel that is very fair.
Flag Sun Aug 11, 2013
Pacita Dimac…, Agent, Oakland, CA
Mon Aug 12, 2013
"The end of life" is a very common inspector's observation.This is intended make sure the owner monitors the condition and probably keep funds in reserve for replacement in the future. But if the units work great...what would you ask the owner to do if they're not broken or not working properly?

You are smart to have inspections done. In a multiple offer situation (and particularly if there is a back up), the seller may not be inclined acquiesce to requests for repairs, if any.

You can ask, but he can say no. If you back out, he will put it back on the market. EXCEPT ---- your inspections now become part of the disclosure package, and other buyers may raise the same questions.

Just for reassurance....and something you may ask for...get a home warranty to cover these items. They may cost extra, but it's worth your peace of mind. And renew it for as long as you want.

Good luck, and congratulations on getting your offer accepted in a multiple offer situation.
0 votes
Kris Plechaty, Agent, Menomonee Falls, WI
Sun Aug 11, 2013
Hi Molly,

I agree with Karen...see if you can negotiate a home warranty to be included with the purchase price. Alternatively, you as the buyer can also purchase a home warranty. That will give you peace of mind for at least the first year...this is typically when new buyers are stretched financially and can't afford to replace major mechanicals. You will also want to continue to get the furnace and A/C serviced on a regular basis...no one knows when the furnace and A/C will "croak," but keep in mind that someday it will, so you will just need to budget for a future replacement. Much like the brakes and tires on your car...at some point they will need to be replaced!

Have these conversations with your agent and I'm sure he/she can guide you through this process!

Good luck,

Kris
0 votes
Karen Wenzel,…, Agent, Brookfield, WI
Sun Aug 11, 2013
Being that you were in a multiple counter position, I would assume the home is priced competitvely and everyone sees the "value" in the home. Being that the furnace was just checked 8 months ago, and the Air conditioner is working, you may want to budget for replacements in the future. Talk with a Heating contractor to see what they know about the Bryant issue. That may give you some insight and idea of what the outcome may be. Otherwise maybe getting a home warranty, several companies that your Realtor can show you. This would cover the furnace, A/C, appliances, water heater, etc for one year from closing. Cost would be somewhere around $445. Depending on your situation, Seller may agree to do that for giving everyone peace-of-mind.

I'm sure you will find a good resolution. Enjoy your new home!
Karen
0 votes
allan erps,A…, Agent, Pearl River, NY
Sun Aug 11, 2013
Double edged sword here, with multiple offers you may be bounce if you cause a commotion. Since the furnace runs well it seems that may be a non issue. Maybe you can take up the issue with Bryant after you close but consult your Attorney & Agent for sure. Allan
0 votes
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