Under contract inspection findings

[Patrick Ng]

Hi All,

I am in the option period for my first duplex(full rental property). The inspection report came back, and there are a ton of deficiencies( roof in bad shape, pier and beam findings suggesting movement of the property, improper electrical fittings, gas lines not to code, etc). I am just starting out, and wanted to know if it would be reasonable to negotiate a decrease in sales price given the inspection findings, without having a specific roofer, electrician and plumber come out and give actual quotes for the work that needs to be done. To schedule the other folks to come out to the property would put me beyond the current options period per the sales contract. Anyone have some experiences to share in this situation? Thanks!

Patrick

[Nathan Platter]

Hi Patrick,

I'd recommend getting 3 quotes per project (3 roof estimates, 3 electrical estimates,...) If you and the seller don't agree that the price has to be lowered to match the actual value, simply walk away and the next potential buyer will ask for the same concessions.

Once the owner knows, they are are not allowed to dishonestly sell the property without first disclosing the issues.

At this moment, the owner is "stuck" with the property, not you, so he's more motivated to fix it up than you.

Go get 'em!