I’m in the inspection period of my first deal. A duplex with intent to owner occupy. I’ve already gotten the whole home inspection which revealed some things I was expecting (roof with only a few good years left, old furnace and water heater) and a few things I definitely was NOT expecting (outdated electric on 60 AMP service).
Not sure how to handle moving forward with this deal. I had most of the things that needed to be fixed in my numbers, but even the roof is older than I had planned for. I really want to ask for the roof repair and the electrical to be updated and brought up to code. What’s a good way to ask without putting the seller on too much of a defensive?
Or should I just lower my offer to compensate?
Curious as to how some other investors would handle this situation.
Nothing that you stated seem to be broken . A roof , a furnace , a water heater and the electrical panel are generally all in plain view when you look at a property . They are just old . If I were the seller I wouldnt reduce the price or update because you will have to replace them in a few years
I agree, just ask for credits. Why ask them to fix? Just fix them yourself after you close. Your price should reflect what the property is worth to you with the knowledge of the current property condition.
I had some rentals that needed some work when I sold them. Originally I got hem cheap enough, cash flowed very well for a number of years, and I sold them.
In the hot market here, I sell them a little below market. Flippers snap them up quick, they couldn't care less, to resell it.
And in a few cases, I thought of doing a rehab or sell. If some buyer mention to me that I have to put a new roof in among other things, I say yo myself, maybe I do that and keep it myself. For me, rehabbing takes a lot from me, and I have to be totally enthused.
Make a lower offer, and go on to the next one if the seller has a problem.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing