Hello All - Intermediate level investor (have 5 buy and holds) looking to do my first home hack / Multi family on a two unit .
I am in the due diligence / home inspection phase after putting in an offer for a two unit property that was being offered as an estate sale (owner passed and the heirs didn't want the building) The listing agent made a point about saying the house was "As IS" (this wasn't in the Witeen MLS listing) . After viewing the property and looking at other inventory in the area , decided to put an offer in at ~$12 K below asking ( $200,000) . Offer was accepted the next day and we went under contract
After my offer was accepted , arranged for a home inspection . Most of what the inspector found I had already anticipated through my walk throughs, but one issue popped up was the third floor bathroom , specifically it leaked during flushing , both on the floor and small water cascade on the floor below The toilet did have a note on it saying not to flush , there was a drain problem , so the previous owners did know about it. Question is how best to proceed . According to the listing agent , they don’t want to fix it, but are open to offering a credit on closing .
How do I get an accurate estimate / correct credit amount without a plumber physically inspecting the unit , (property is vacant and arranging it to be opened is a big coordinations hassle ; and how much to ask for credit ?
Did you try replacing the wax ring
It cost less than $20
Sounds like a minor issue with a wax ring or another gasket. Worse case it could be cracked porcelain but even then it'll only cost $125 or so for a whole new toilet (plus labor, if you aren't doing it yourself). Do you have an agent representing you? If so she should be advising you on how to properly handle this negotiation. If not, I'd say to ask for a $500 credit and settle for $0 since this is probably a pretty minor issue.
As the inspector what he thinks it will cost and ask for worst case scenario.
@Kenneth Hynes An experienced plumber should be able to get you a pretty accurate estimate on the cost to fix it. I mean worst case scenario is, new subfloor, new drain plumbing, patch flooring (or replace in bathroom if it's sheet flooring). Either he'll go in from the top, or go in through the ceiling below, but there shouldn't be that many unexpected issues in something like this. Just have him quote you for the worst possible scenario
Agree with the comments that this is unlikely to be a super-major issue.
What does the contract say about your options after completing home inspection? Sometimes with as-is sellers, the contract says no adjustments can/will be made for condition. But if the contract was more cookie-cutter, it may give you more options. Some as-is sellers are just communicating that they aren't going to do any work; others have the mindset of "whatever you find, you can't change the contract".
You may want to add "flush all toilets" to your walk through check list lol.
Worst case is a full gut rehab of the bathroom. Ask for $10K off the price and move forward, then replace the toilet/wax ring and you'll have saved $10K.
@Kenneth Hynes worst case is a line issue and a couple thousand dollars to replace the section and patch it back together, $3k if you're in an expensive market. 90% chance it's a 1hr job and wax ring though. Replace it with rubber (lifetime opposed to 10 - 20 years with wax) and you'll be good to go. Push for a couple grand though just in case