I think I'm paying too much for this house...

4 Replies

The bank had put it for sale for 234K, and came down to 190K, over a period of months. I had just seen the most recent huge price drop, and in a really competitive market, I jumped on the opportunity, telling my agent to tie it up, I'll view it later (since I can use the inspection contingency). Well, I went to view it, and the house needs far more work than the pics showed. Both bathrooms need updating, one of them has serious mold issues on the walls and ceiling and will have to have all the drywall torn out.

The kitchen needs a remodel (cabinets and appliances with some paint, mostly). It needs carpet and paint in the rooms as well. Also, the roof has a THICK carpet of moss on the back of the house. I'm figuring this is easily 40K worth of work. Plus I have to let the house sit empty while all the work is being done.

I'm thinking of backing out of this deal. Either that or asking for a lower price as a result of the inspection.

http://www.zillow.com/homedetails/2901-14th-St-SE-Auburn-WA-98092/49055358_zpid/

It's so sad to see properties fall into ruin.

That picture is a far cry from what you described. It's a good thing we don't rely on them.

How is your contract written? You have an inspection contingency so you may have some leverage, yes? Can you reduce the price on your findings?

@Jack B.

I would counter due to condition. Are you paying cash and offering a fast closing? The bank may consider those a benefit when considering whether to accept your lower offer.

If it wasn't a good buy at 230 why would it be a good buy at 190 + 40 ? Seems like a project where you would want to be buying at 190 less repairs. Of course I don't know your market at all. What does it rent for ? ( add some landscaping budget it looks rough).

Originally posted by @Sean Kollee :

If it wasn't a good buy at 230 why would it be a good buy at 190 + 40 ? Seems like a project where you would want to be buying at 190 less repairs. Of course I don't know your market at all. What does it rent for ? ( add some landscaping budget it looks rough).

Couldn't see all the defects in the images, carefully left out. In the pics it doesn't look as bad. Trust me it is MUCH worse in person. Whole house needs paint, carpet in the bedrooms, bathrooms and kitchen replaced, roof replaced. From the pics it looks like a deal at 190K in my area. But once you see it in person you start to question that. It may be worth about 250-260K after repairs. Rents would be so-so, but that's my market these days. The listing was in Auburn, WA 30 minutes south of Seattle...