Are we asking too much of the seller?

Question

Hello folks,

We are in the midst of closing on our first buy-and-hold deal. In another thread, some of you kindly analyzed the numbers and we're going to get about a 10%-12% cap rate. Official loan documents are being signed, inspection has been done and repair addendum has been agreed upon. Seller is agreeing to some small things (like GFCI outlets and removing debris) and some large things like a brand new roof and foundation repair. After getting my Insurance Agent, who is also my Dad, to look over the inspection report, he noticed several other things that he suggested I ask the seller to take care of before closing.

In my mind, I don't want to be too demanding as a buyer. However, I am in the position of power as the house has been on the market for almost 6 months and its clear the seller wants to get rid of it.

My question is, how common is it in buying RE for the buyer to ask for multiple repairs in more than one addendum? Since I've already submitted my first addendum and he's agreed to so much already, should I just be satisfied with what I'm getting and not press my luck? Is there any strategy to asking for repairs? Is it best to ask for 100% of the repairs we want up front and not come back and ask for more over time?

And a related question for a roofer or contractor is: We are getting a brand new roof put on the house by the seller as well as foundation repairs. How much would it cost to ask for some ventilation to be added to the job? The inspection indicated ventilation issues in the attic and under the house. I'm wondering if these can be taken care of while the roof and foundation are being worked on.

Thank you for your expertise and your suggestions.

JD Martin · Answer

The roof should be vented when it is installed. Additional ventilation while a roof is off is pretty cheap if you are talking about an attic turbine or similar. If you are talking about gable vents, that has no bearing on the roof installation, but lack of proper ventilation will ruin a roof and any reputable roofing contractor will not install/warranty a roof without proper ventilation.

Foundation ventilation could be as simple as knocking out a block in each corner and installing a foundation vent, or as involved as excavating, installing vent wells, etc.

How much should you ask for? Well, the seller can always say no to further requests. Generally, it has been my experience that it is best to pay for the house in the condition it is in and handle repairs yourself, meaning that you've already received a discounted price for the house needing receptacles, vents, etc. If I put a contract on a house and find a serious problem during the inspection, I will either ask for a reduced price or walk away from the deal. I don't want the seller doing repairs for me, because the seller has a vested interest in doing them as cheaply as possible.

Andy Luick · Answer

Foundation issues from settling are pretty common in TX. Every deal is different. You're already under contract and, I would think, have signed off on the repair amendment. You can always ask for more and risk losing your earnest money if you walk away when the seller says no. As with many of us, we've walked away from deals only to have them return to us later. You will see a lot of threads like that on BP.

Is this a tear-off or an overlay? Adding a continuous ridge vent won't add a ton to the job, depending on the size of the house. You could just ask the roofing contractor what the cost would be to include one...it's probably $300 to $500. Ventilation is key...not only in naturally cooling you home but, without it, your shingles will age prematurely. Same with having adequate soffit vents. Your house needs to breath in a sense and, when it doesn't, you get mold, dry rot and premature aging of systems.

The risk you have here with asking more is that the seller is probably already spending a ton to just get it sold. Ask but be prepared to just cover it yourself. Luck!

David Dachtera · Answer

@Ashley Wolfe,

Well, all you can really do is ask. If you don't ask, you don't get.

That said, you've already gotten the seller into action. You may want to consider holding off on further requests rather than sour their sentiments surrounding the deal. If they perceive you as demanding, they may be less motivated to do a good job or they may cut corners which might leave you redoing those same repairs very soon.

Just a suggestion...

David J Dachtera

"Success is not a destination. Failure is not an event. Success is a process, failure is a choice."- DJ Benedict

Are we asking too much of the seller?

Are we asking too much of the seller?

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