I have a WWYD question about buying a house --update

update: so we walked away from the deal. After reading the full version of our inspector's report it turns out the house needs new siding, a new roof, new windows and had evidence of termites. Our inspector said that it did NOT pass termite inspection. Since we put in an offer at full asking price for a house that we thought was in mint condition, we decided the best thing to do would be to walk away. All that work would have cost us around $44,000 Thank you to everyone who gave me their opinions/advice. I really appreciate it. Looks like I'll be stalking mls again


We found a nice house in one of the areas we really liked. It's a cape, the front isn't so flashy and I'd like to add the doggy windows (not sure if that's the correct term for them) to the front because right now it's just looks like so much roof. Anyway, our inspector went in today and basically told us we'd have to put in new windows, do new siding and a new roof. Now, we would have probably had to put a new roof & siding on anyway since we're doing the windows in front of the house, the siding and roof would need to match the rest of the house. The windows were a not so pleasant surprise. The inspector also found some evidence of termites but he said there's no damage so it's probably not a problem. The homeowner said he has terminix come every 6 months to check out the house. I'm not sure if that's normal or not. The inspector also found evidence of past leaks but he can't tell if there is a current problem with leaks or not. I should also add that the inside of the house is in very nice shape, there is very little we would need to do.

Here's my question: We offered asking price on this house because it seemed to be in great condition in an area we wanted. If you were us would you try to get the homeowner to lower the purchase price since there is some work that needs to be done? I'm left a little uneasy now knowing the information the inspector told us. This will be our first time buying a home so please excuse me if it sounds like I have no idea what I'm talking about.

TIA

Message edited 12/2/2009 5:07:19 PM.

Re: I have a WWYD question about buying a house

I think it might depend on what the price is. If it's priced on the low side because they are aware of some of the issues then I would probably say just go forward with the amount. If you feel like it is priced on the higher side then there are probably negotiations you can make. You can offer them less or ask them to put the new roof on. I doubt they would go for the windows though.

It's so hard to know what to do!

Was your inspector able to give you the termite report? Did the house pass?

Re: I have a WWYD question about buying a house

I think it really depends on what you were expecting to do and what is a surprise....were the windows visibly damaged or old? If so I'm not sure the seller will budge cause that is something that should have been negotiated already (IMO).

Termites are a problem on LI so if there is no damage and its been treated I would just continue to treat...

You can ask for price reduction on all of this and then negotiate from there....always ask cause the worst they will say is no.....just be comfortable with the house.

Re: I have a WWYD question about buying a house

We had a sort of similar issue. We bid asking price on the house and at the inspection found out that the boiler was from 1951 and that there was an underground oil tank, which add up to $6000-$7000 of repairs we'd need to do pretty soon. But we kind of felt like it was our fault for not having asked before we made the bid, and that every house has thousands of dollars worth of stuff you need to do to it soon after you move in, so we let it slide. We still feel like we're paying an eensy bit more for the house than we could have gotten away with, but it was only on the market for a week when we put in our bid, and we wanted to scoop it up before any "competition" got near it. You probably did the same thing, right?

Anyway, we asked the owners to pay for half of each problem, and they said no way on the boiler, and okay on the oil tank. So of the $6000-$7000 we need, we'll be getting about $1000 from them. We want the house so much, though, we're willing to lay out the rest from our pockets. If you are, too, then you're good to go. If not, you can try fighting the owners for it and see where that gets you (in our experience it got us nowhere - since we offered full asking price on the house, they knew how bad we wanted it and that we weren't going to walk if they said no.)

The termites, I wouldn't worry about as long as you "passed" termite inspection. You need to have passed that to get your mortgage.

Congrats on finding a house you love and good luck with the rest of the process! Sounds like you're about where we are - our lawyers keep sending the contract back and forth and we're hoping to sign next week.

Re: I have a WWYD question about buying a house

Regarding the windows, as a previous poster said...if the windows were blatantly old there is probably not much you can do. We had a problem with the windows in our house (most dont close properly or lock...and they are drafty) We tried to negotiate it with the owner but he wouldnt budge. Windows are pricey (about $400 each)...but you can get a tax credit for buying the energy star rated ones which may be a big $ saver in the long run.

Regarding the termites...as most people said, they are generally a problem on LI (there was evidence of termites in our house too)...but we just have an abatement system around the house which they come to check every few months or so.


Really what it should boil down to is what you can afford. If you love the house so much, and you feel that you can comfortably afford the repairs that need to be done, then I say go for it. I would definately ask for some $ off the price, but be prepared for them to say no. That's what happened to us, and we have already had to put about 10K into our house since we bought it...but we are still happy with our decision.


GOOD LUCK

Re: I have a WWYD question about buying a house

I think I would change my offer.

You were not expecting to do this work and it changes the finances.

In a buyers market I think it is fair if you ask for a "credit" or whatever and deduct the price of at least the windows, if not the siding as well.

They may not take it but it is a worth a shot

Re: I have a WWYD question about buying a house

I would try and renegotiate the price, giving specifics....this was wrong and I think it would cost this amount. It is worth a try. You don't want to have any regrets later on.

Re: I have a WWYD question about buying a house

I would definitely try to renegotiate - what is the worst they can say - no. I really feel as though you have nothing to lose by asking.

Re: I have a WWYD question about buying a house

Definately, you should ask for credits. The homeowner can either split the cost with you or take it off the asking price. This is all part of the negotiations after you get the inspection.

Re: I have a WWYD question about buying a house

i would go in with another inspector (cheapest way of knowing what you are doing is right ... going in full offer).

i mentioned in another post, i have a engineer company that went in with me and gave me a verbal b/c i expected that the previous owners took care of the house (in the event they found something serious, i would have had them put it in writing, but didn't...) and so they walked me through the house recommended changes.. (PS--- it was like 275.00 for me WITH the termite inspection in writing)

i would suggest doing that one last time.

tell your realtor, you are not happy with your offer based on engineer report #1 and either they accept a lower amount for the things that they found, OR split the cost of a VERBAL report.

{or--- even tell them you want to deduct the amount of windows (approx 250.00 per window) from the asking price.}

this time, go through the house with the sellers. let them explain the termite damage to the inspectors. everything else that the originals found in the report. this way sellers are aware and understand why you want to knock down the price. you will do it, and the next buyers wil if you don't buy it...

it's up to you ultimately...

Geesh, i thought you were in contract on a house already. good luck. i hope what is meant to be, will happen...

Re: I have a WWYD question about buying a house

You can try to get them to lower price, or you can try to work something into the contract - like they replace the windows or give you money in an escrow account for the windows.
We had it worked into our contract that the seller would finish the siding on our house (it was partly done when we went to contract).
As for the termites, you should get documentation that the seller has terminix come every six months. I am pretty sure that terminx offers some kind of guarantee, so if you find a termite infestation when you move in, they should do a treatment for you for free.

Re: I have a WWYD question about buying a house

Thansk for all the advice ladies, I think we will be asking them to lower the price. You're right, the worst thing they can say is no.

Dava - we are in a similar situation, our agent went to the brokers open house last week, we went in and saw the house that night and put an offer in the next day. It's crazy how fast houses are moving off the market. It's almost like the market prices got so low it's not even a buyers market anymore!

Re: I have a WWYD question about buying a house

Re: I have a WWYD question about buying a house --update

bump for update

Re: I have a WWYD question about buying a house --update

Oh Jess, I'm so sorry. But you did the right thing. With all that work that needed to be done, the house wasn't worth what you (or the sellers) thought it was worth a few weeks ago. You expect to find a few thousand dollars' worth of stuff to fix after an inspection, but over $40,000? No way.

I can't imagine how heartbreaking it must be to come so close and not take the house, but you have to know that you made the right choice. With all these problems, even if it looked like the house for you, it just wasn't.

Good luck with the rest of your search.