[QuestionGal]

Okay so we had the inspection on the "new" house today. A couple of big uh-oh's (at least in my opinion)
*house needs a new roof
*dishwasher doesn't function
*water heater needs replacement and better venting
*outside electrical box is "federal pacific" about 1200 to update
*windows need to be recaulked

Those are the things we want to negotiate on. SO, WWYD, lower the price of the house to allow YOU to schedule the repairs or have the seller make repairs prior to closing?

I'm kinda leaning towards reducing the price of the house, that way we could hire contractors we know & trust vs hoping the seller hires good people. OTOH it would be much less of a headache to have them fix it.

Can we say "you fix it but you have to use one of these contractors (and list contractors we trust?)?"

 

[Lookingup]

We just went through this... with two houses actually. The first sale didn't go through, because the repairs were just too intense. The next one, we close on July 24th.

To answer your last question, sure you can request they use contractors you trust. Worst they can say is no, and if they want the sale, hopefully they'll say yes.

We chose to get a credit at closing to do the repairs ourselves, for the reason you listed: we wanted it done right. However, we have friends who chose the opposite route (have the sellers fix it.) Their reasoning was: what if it costs more than anticipated, and you're stuck with a money pit? It's certainly possible. But they had it arranged so that their engineer inspected all the repair work done before contracts got signed. So if the work was substandard, they walked. Luckily, the seller had it done right, and they're moving forward with closing.

So... either way can work. We asked for more money than the estimate our contractors gave us, just in case they went over. Then we have a little financial room. You may want to think about that option as well.

The reason we're getting a credit, rather than reducing the price of the house, is so we can have that cash at closing to get it all accomplished.

Anyway, I hope some of my rambling thoughts help. Good luck to you!!

 

[QuestionGal]

Quote:

Originally Posted by bygones75 We chose to get a credit at closing to do the repairs ourselves, for the reason you listed: we wanted it done right. However, we have friends who chose the opposite route (have the sellers fix it.) Their reasoning was: what if it costs more than anticipated, and you're stuck with a money pit? It's certainly possible. But they had it arranged so that their engineer inspected all the repair work done before contracts got signed. So if the work was substandard, they walked. Luckily, the seller had it done right, and they're moving forward with closing. So... either way can work. We asked for more money than the estimate our contractors gave us, just in case they went over. Then we have a little financial room. You may want to think about that option as well. The reason we're getting a credit, rather than reducing the price of the house, is so we can have that cash at closing to get it all accomplished.

REALLY good ideas! Thanks

 

[HeatherB]

Whichever way you decide is best, STICK TO YOUR GUNS. That's all I can say! I have regretted for the last two years the things the...ah, um, people... who owned this house got away with. We just spent $2k repairing the pool equipment, and will need to nearly gut the master bathroom to make it useable. Oh, and the a/c unit had to be completely replaced last summer, too. (And the home warranty wouldn't cover it because they didn't REALLY do what they said they would and thoroughly clean the unit! They *maybe* hosed it off, so when it died, too bad!! We got stuck with the $6k bill!!)

But I'm not bitter at all!!

I don't know if we would've walked or they would've or what we could've done, but there's no question they took advantage of us, and the fact that we were in CA at the time. So I definitely recommend making sure it ALL gets done, one way or another!! (Thankfully our roof was recent and installed by a friend!)

Hope it all goes well!!

I know how utterly frustrating this process can be!

 

[stacey2061]

well, i don't know what you should do but i will say that we have done all those things on our house in the last 2 years except for the electrical and they weren't that bad. i can tell you what we spent (materials cost only) and how difficult it was. that might help...

new roof $1200 (we were quoted $6000 by prof roofers)
new dishwasher $300
water heater needs replacement and better venting $300ish
windows need to be recaulked $20 (if that)

i know those $ are cdn so it's not entirely relevant, but the exchange rate is close these days. anyway, my point is that none of those cost too much and the workload isn't that bad. my family did our roof in 2 weekends (that was my mom and DH alone b/c i was 6 months pg) and DH did the water heater in less than a day...so anyway, maybe that gives you something to think about...i just wanted to let you know that the list seems overwhelming but it's not really so bad

if it were me, i'd take 7-9000 off my offer for those repairs (less if you are willing to do the roof yourself) if i were selling my house and the buyer demanded i fix things, i'd be unimpressed. most of the time, you don't put your house on the market because you want to fix it

good luck

 

[jessitron]

I'd definitely want to choose the dishwasher and roof myself. The water heater, I'd probably have them do, especially the venting. Windows recaulked, no idea. Electrical I'd want to get done but only because we have an electrician friend who would do it right at very reasonable cost. So... a combination?

That credit at closing sounds like a great idea.

 

[Starr]

A new roof is going to be spendy if they have to do new sheathing and then the felt and shingles, if they just have to re shingle it wont be so bad.

Caulking windows is pretty minor, maybe $50 with caulk and the time should be a few hours. Not sure if I would make an issue out of it but rather focus on the big things.

 

[QuestionGal]

The more I read your responses the more I think I'd rather WE make the repairs (and reduce the sale price accordingly). Let's hope I'm not over-ridden by our realtor and DH

 

[HeatherB]

Just remember that the sale price is a price you'll pay over 30 years (or whatever). Simply reducing the price doesn't actually put money in YOUR pocket to do the repairs NOW. Someone talked about a credit - I'd see if something like that would give you cash out of the deal right away, so you can do the repairs without dipping into your personal savings, etc., at this point. (Of course, for us, we pretty well cleared out those savings just getting the house, but it might not be as big a deal for everyone!)

OH, and be sure they give you the first year's homeowners warranty thing. That way if anything else goes out, you're covered! (Well, mostly, as I said!)

 

[QuestionGal]

Quote:

Originally Posted by HeatherB Just remember that the sale price is a price you'll pay over 30 years (or whatever). Simply reducing the price doesn't actually put money in YOUR pocket to do the repairs NOW. Someone talked about a credit - I'd see if something like that would give you cash out of the deal right away, so you can do the repairs without dipping into your personal savings, etc., at this point. (Of course, for us, we pretty well cleared out those savings just getting the house, but it might not be as big a deal for everyone!) OH, and be sure they give you the first year's homeowners warranty thing. That way if anything else goes out, you're covered! (Well, mostly, as I said!)

I talked to our realtor and mortgage person about the credit at closing... it's a no go. In Tx the seller is only allowed to give the buyer 3% at closing... since they are already paying our closing costs the additional amount wouldn't be nearly enough to cover repair costs. We're hoping to do a split thing... ie, they make the repairs that we don't feel the need to control (door swings, thresh-holds, etc) and we reduce the sale price to cover the major repairs (roof, water heater, dishwasher, electrical box). DH has assured me that we can scrape up the money if needed.

We are definitely doing the home warranty thing, they'll pay for the 1st year, and then we'll keep it up afterwards. MIL had one on her house and it was godsend more than once.

DH is in the process of getting repair bids ready so we can show the sellers that we aren't out to "get" them. I would just rest MUCH easier knowing that the repairs were done correctly.

 

[jessitron]

That would make me nervous because other stuff could come up that you need to scrape funds up for. Maybe the seller could agree to a specific contractor for roof or electrical?
Ask your realtor (or your bank) whether she thinks you could get a home equity loan right off the bat for the reduced sell price.

Of course the seller may say "no way! I can't afford to sell this house for less than we owe on it" and it may all be moot. That's what happened to us (although we didn't know the reason during negotiation, of course) and we wound up buying it anyway because it was the best house available. Spent $10k on HVAC in the first year, still needs the new roof and siding. Worth it, though; it is a great house in a great neighborhood.

 

[Inspired007]

Quote:

Originally Posted by QuestionGal Okay so we had the inspection on the "new" house today. A couple of big uh-oh's (at least in my opinion) *house needs a new roof *dishwasher doesn't function *water heater needs replacement and better venting *outside electrical box is "federal pacific" about 1200 to update *windows need to be recaulked Those are the things we want to negotiate on. SO, WWYD, lower the price of the house to allow YOU to schedule the repairs or have the seller make repairs prior to closing? I'm kinda leaning towards reducing the price of the house, that way we could hire contractors we know & trust vs hoping the seller hires good people. OTOH it would be much less of a headache to have them fix it. Can we say "you fix it but you have to use one of these contractors (and list contractors we trust?)?"

If I were you I'd make sure at least the roof and water heater is fixed prior to closing. The other stuff I would negotiate as a deduction from the offer. Dishwashers, stoves and refrigerators are always bonus items that sellers sometimes take with them so I don't think I'd harp too much on it. Unless you want to of course...