Thursday, April 17, 2008

Inspection and Contingencies

You may have heard by now that we have still progressing with the house on Morrow.
The update:
Inspection went well last week but it was determined that the HVAC/furnace was out of code and the ducts would need to be replaced for about $2300+/-. Also the electrical panel and wiring were out of code and most importantly had serious factors that need to be resolved to the amount of $10,000 (ouch!). [The inspection report was rather lengthy but these were the serious two since it is an older house]
After meeting with the electrician and furnace/HVAC person and getting those bids, we forwarded them on and included them in our contigency to the seller that the repairs be made after closing and that they pick up the cost.

Tonight...Janet, our realtor, called and said that the seller does not want to lose us and are willing to split the cost of the repairs 50/50. You should probably know that there is two lingos going on with the electrical that we need to get more information about tomorrow from the electrician that submitted the bid. One was making the house "legal" and the other to "code". I am sure that to make it legal will still be expensive but going to code will make the addition of the 2nd bathroom alot smoother when the time comes.
My stomach is churning on the notion that we could be facing an uphill battle with getting into an older home. Also that the seller will not budge on what she wants to pay.

The facts and then you judge:
Say you were buying this home and the seller's house was in need of some updating. You are thinking that they need to make it "habitable" right? That's what I am thinking. How can you sell a house to another person when the house needs something as basic as electricity without being shocked. The backstory of the seller: she inherited the house from her parents and holds a paid note with no liens on the house. Should she pay the entire amount and call it a day since you think that she is gaining nothing but $dollars in the transaction? She has probably been paying the taxes and house bills since this. Now, say that you know that the house has been on the market for around 249 days..does this make a better bargaining tool for you to get the money you need to bring the house up to code/legal...whatever.?

Now we are faced with asking the electrician the difference between legal and code and seeing what that price point will be. Either way I feel that we start this whole process over with another house or get the seller to assume more of the cost since technically the house is not ours "YET".

YET! Fascinating word that would change lives and hopes. The new meaning that turns an appartment to a house and a buyer to an owner. We will not assume liability YET, we will not be a money pit YET...daunting and sinking and spinning to an ever lasting word..YET.

2 comments:

Vanessa said...

Sheila,

It's been nearly a year that the house is on the market. The only reason to buy an old house in need of repairs is if you can get it for a good deal. Either way, this lady will come out ahead. She should assume responsibility or drastically drop the price. Just my 2 uneducated cents. :)


Love ya,
Ness

Home Theater said...

Hello. This post is likeable, and your blog is very interesting, congratulations :-). I will add in my blogroll =). If possible gives a last there on my blog, it is about the Home Theater, I hope you enjoy. The address is http://home-theater-brasil.blogspot.com. A hug.