Selling condo, buyer says furnace is "end of life", & wants $5k, Its older but works.

[Doraine Warner]

Furnaces can run for over 30 years, I have read, we have had some that did. The furnace is 20 years old, but we've had no problems with it at all. It seems a bit like a money grab during escrow to me. We are selling it to them at a good price, and there are not many condos for sale in that price range. We actually sold it before the condo was even listed on the MLS. We are considering putting back on the market. I have never heard "the end of life" bit before, and we have sold dozens of real estate properties. Opinions?

[Richard F.]

Aloha,

At that age, it is not an unreasonable ask. You cannot tell just by looking, or by the fact you have "had no problems", what the actual condition is. It could very likely have a cracked heat exchanger, which could be deadly; If the blower and controls are original, they could certainly fail at any time; and, depending on fuel source it is likely VERY inefficient compared to new models. As with any written offer, you are free to counter, perhaps splitting the cost. Although, selling before it went on the market may well have left a lot on the table, depending on your specific property and market.

[Doraine Warner]

They bought the condo at a very good price. We actually already lowered the selling price. At 100k as the selling price, $5k is a lot to spend on "possible future problems". We stayed at the condo while we worked on it, and the heater was perfect, and it has never had a problem. It works better than our furnace at home, at keeping us warm. Furnaces usually start having problems before they stop working, and there are telltale signs of wear and tear. 

The buyers got a bargain on the price of the condo, really. Another condo had several offers over market on the same condo as ours, in our complex. Our other house has a forty year old furnace in it. We are going to put it back on the market. We have bought and sold dozens of homes,  and have never run across this. $5k off for a $100k condo? We already lowered it $5k. And, the average life of a furnace is "At least 15 to 30 years old", I have read. That makes it middle aged, not "end of life". 

[Dustin Allen]

@Doraine Warner

Offer to buy them a premium two year home warranty that covers the furnace and a lot of other items in the unit. That’s a fairly cheap solution and they could end up getting more than just the furnace out of it if things go really bad.

[Theresa Harris]

A 5% discount is a lot to ask, they can ask and you can say no. They knew what the furnace was like when they walked the unit (ie they could see it was older) and put in the offer knowing that.  I like Dustin's idea of the home warranty, but I have no idea how much that is.

[Winston Covington]

I like Dustin’s advice. In addition to a 2 year home warranty plan, I would have the unit inspected by an honest HVAC contractor.

A letter from the cContractor certifying that system is in good working order along with the home warranty should put the Buyer at ease.

If that doesn’t take care of the problem, you can split the cost or put the condo back on the market.

Just remember that if you put the property back on the market, you will need to provide the next Buyer a copy of all inspection reports as well as be prepared to explain why the previous deal canceled.

[Russell Brazil]

Life expectancy of a furnace is 15-20 years. It is in fact at the end of it's expected life span.

But that was easily knowable by looking at the date or serial number on the unit.

[Nathan Gesner]

Quote from @Doraine Warner:

The furnace has no problems, so it is not at the end of its life. They've asked you to give them $5,000 for a new furnace. You are allowed to reject their request.

Reject it and see what happens. If the end the contract, you can put it back on the market and try again.