Or, who knows... Perhaps in another 6 months of sitting on the market they'd be willing to make that -$50k deal that would render the risk worthwhile.

quote:

We did ask for them to perform the repairs or come down further on the cost, and we provided the inspection reports. They refused.

Check back in 6mo.

ETA - Great minds.....Rouge

People get overly emotional with things like this. It's really just a simple business decision.

Value of house in perfect condition = X

Subtract all necessary repairs at retail pricing with a 20% padding for all of the things you'll discover once repairs are started.

Subtract the value of your time and effort to address these issues, which isn't or shouldn't be free.

There's what it's worth to you in its current as/is condition. Then offer a slightly lower number so that you have some negotiating room.

I would go back to the Owners and see if they will contribute to the repair costs, perhaps 50% of the total.

Yes that’s potentially a lot but in this market you, as the buyer, are in the drivers seat.

I did this many years ago and ended up walking away only to have the seller come back to me several weeks later to accept our offer.

This message has been edited. Last edited by: smlsig,

Like a used car, these problems are just what is found now. There could be even more. You have the signs of a home/property not being properly looked after. I’ve run into this prior. Inspection didn’t catch x, y, and z. It was only after I bought and lived in the home did I start finding the band-aiding the previous owner had done on multiple things that cost me thousand of dollars to fix permanently, and fix the correct way. I’d walk. That list is big, and expensive, and major components. You have taken the test drive in the car and already visualizing owning it, driving it, etc, and it sounds really appealing. But if you take a step back, deep down, you know it’s a bad buy, and have to convince yourself to let go. Right now it’s business.

I’m in your same situation. It took me years to find the right area for the final or permanent residence. I started looking at acreage/house after house. Nothing but this and that to fix after neglect. Older homes where I’d have to spend major money to fix this, replace that, or straight up remodel. The places that were half way looked after, the seller would add 100k, 200k, to the point it was ridiculously priced. I finally came to the realization to just build my own so I bought the acreage last year. As soon as I’m ready I’ll take out a construction loan and build it. New HVAC, kitchen, bathrooms, water line, power lines, new septic, etc is worth it IMO. And you get to call all the shots and get warranties. My land is also away from the conveniences so the last thing I want to deal with is making calls to fix x, y, and z.

Concerning one item that could be very costly, the septic. I'd offer to pay for the pumping and inspection. The result of that can help you make your decision.

Overall, I see lots of obstacles and it would probably come down to lowering the offer to what makes more sense. Let them stew on it.

As FlySig said, emotions make for a tough decision.

With the repairs listed and possibly more in the future, the roof could cost you $20-30K, the a/c is anywhere from 5-9K (depending on where you live), water break if it is under the house can be costly if has messed with the foundation and if the septic is in trouble, no telling how much they can gig you for.

On a side note, is the house insurable if the roof is not good? My mother just had to replace her roof as her insurance company said they would not insure her if it wasn't and we are in the middle of trying to get it ready for sale.

Only you know if you want to spend the amount you do but where I live, it would be a "no go" unless they help a good bit. Being that the house has already been on the market for 6 months, tells you what you need to know. If they don't get those things fixed, they will eventually have to do the repairs themselves and the way things are now, prices are coming down anyways.

I'd walk if they wont budge, theres alot of concerns like if you pump the septic and find issues or cracks in the tank etc. Also if they wont pump it before the sale do they know theres an issue? I'd say see ya, just me.

It may not feel good but I know I twice was all hot to trot about a house and ended up with something I liked far more both times, after walking and continuing to look.

Best of luck either way

Sounds to me as if they got caught up in the "our house is worth a bazillion dollars" from a few years ago when buyers went nuts and were offering well over listed/asking competing against a string of other buyers.

That ship sailed.

If they still believe that, and all they have done is dropped 6%, won't even due the things that someone motivated to sell would do without being asked, they are not being realistic.

Still a seller's market, but those that do not need financing and have ready cash to buy, and if they have a current house and can wait to sell still have good advantage for the inventory of those who are motivated to sell.

Unless the house is sitting on a goldmine, your fighting hard for a lot of grief, unless you want it bad enough to do everything with a smile.


And I am willing to bet a banana patch, as soon as you buy it, you'll see a listing for a better place, for better price and you'll regret this one.

The fact that you are at this point and talking about the negatives (that outweigh the positive), speaks.


And as asked, if the house has not sold, (how many offers if you know, before he dropped the price, that were within a few percent of the current price) and you spend all that is required, adding in a decent amount for unseen, but what you discover when you touch plumbing etc., and ask yourself what would you be able to sell the house for right now having made those repairs and have it up to your "walk in ready" standards?

This is where I'd lean on my agent to earn their fee and work with the listing agent to be sensible. Doesn't sound like theres much budging, and I'm with everyone else, I think you walk.

Nothing wrong with contingencies or executing repairs prior to closing, but you cant refuse all of that AND refuse to move on the price, not if you want to sell a house. Maybe its different in your market, but houses sit longer here than they did earlier this year.

Yeah, the sellers have been pretty obstinate.

We spoke with our realtor, and asked him to reach out to the seller's agent to inform them that we're willing to back out of the offer, and ask if the sellers would like to reconsider. And to remind them that if they put the house back on the market, that they are legally obligated (in SC) to report things found in the inspections in a Seller's Disclosure Statement.

And it's not going to sell for what they're asking with those issues known.

We've done our due diligence and spoke with the inspectors about any of the concerns that we have, so we know what our risks are, excluding unknowns. But we have a pretty good idea; the inspections were thorough.

The property is 1/2 century old, and almost all that age are going to need repairs/upgraded. If I really liked the property and it was fairly priced for what it is I'd still buy it and do the upgrades. It's your last home so get what you want.

We're just a bit west of you (I think) in northeast GA. and my wife's a realtor so a bit more tuned into the market.

Houses were in limited supply in the last year or so and selling quickly and for ever increasing prices.

Suddenly and recently, the brakes seem to have been put on but many owners haven't gotten the memo yet, and your seller may be one of those.

I'd be polite but firm so this doesn't turn into a head butting contest.

I showed this post to my 78 year old mother who has over 45 years in the real estate business (she's still licensed and works with established clients only at this point in her career).

She said if they aren't willing to budge on price or correct the issues, then she would recommend you walk away. She's not a high pressure agent and says that's what she would tell her client in a case like this.

It might take time, but you will find another place that's a better and safer deal.

quote:

Originally posted by AUTiger89:
Yeah, we've been looking a long time. But you're right about the risk level.

quote:

Originally posted by RogueJSK:
And all of those things can be found elsewhere, with a lower risk/better price for the risk level, given enough time looking.

Since you’ve been looking a long time, how have the other properties compared to this one? Obviously, there had to be reasons you didn’t buy those and are considering this one. Other than price, is this the only property that has come close to checking all the boxes? Or are there a bunch of properties that check all the boxes, but they cost too much?

If this is the only one, then how likely are you to find a better one? If there are other properties, but they cost too much, then the issue is just you need to increase your budget or decrease your expectations.

You are the one that’s there, has looked at the properties, and should have a feel for what the market is. My advice is to not spend more than you are comfortable spending.

Thanks for all the asdvice.

This is the first that we've found that checks so many boxes. And it's actually more than we ever considered spending, but it's do-able.

My wife thinks that if we bought land and built ourselves, we couldn't afford to build a house to suit us. I'm not sure.

Still thinking and praying about it.

^ buy the land, build a Barndomenium. All on one level, new construction, you can dress up the exterior (or not).

I say walk away, and as others have said, you shouldn’t have to pay to get out. When an inspection finds problems the seller either makes repairs or you’re out. (Typically)

I’d also say that if this is the only property you’ve found that meets your needs, you’re either not looking hard enough, long enough, or your needs are unrealistic.

If you’re “money is no object” wealthy and this is it, then go for it and live with the consequences. But from an objective standard, walk away.

quote:

Originally posted by AUTiger89:
Thanks for all the asdvice.

This is the first that we've found that checks so many boxes. And it's actually more than we ever considered spending, but it's do-able.

My wife thinks that if we bought land and built ourselves, we couldn't afford to build a house to suit us. I'm not sure.

Still thinking and praying about it.

Old fart checking in again. We have had four homes built in the past. Three where the contractor owned the process and we made finish decisions etc... Those went generally well. The one time we purchased land and carried the construction note was a horrible experience. We had a contract for a specific house at a specific price. Contractor couldn't seem to understand that fact. Kept wanting more money. Things like, he miscalculated how much concrete he needed so he needs another $3000.
My sister just went through an even worse experience despite my warnings to her to lock everything down in the contract. They started their dream "Lake House" in 2020. They just finally got in to the house about a month ago.
I saw the place in early October for the first time and I complimented her on being able to refrain from raining physical violence on him. For example, the contact called for three pergolas. Dumbass puts a 20 foot header in for a forth, then realizes the contract calls for three. So, what does he do? Leaves the header exposed and tells her that he's done her a favor for doing so. It looks like shit on a brand new probably $400,000 house.

I'll add one thing that I don't believe was mentioned.

Are you paying cash or financing?

If you're financing, the bank may not fund the loan with on a property with this many issues. If you do want to proceed, talk to your mortgage person first.