Recently went under contract with a 3BR 1BA house in a nice neighborhood. It is the worst on the block. Under contract for 20% below market. I made requests to the seller under our DD period and they flat out refused everything, even safety issues. I did not ask for the whole inspection report to be done, but fair items to be addressed.
Advice on next steps? Happy to connect for 1:1 discussion.
I would expect sellers to do ABSOLUTELY NOTHING given our current market. You either live it, repair it, or walk. I bet they won't even change a light bulb.
20% below market sounds interesting though. I'd guess it's distressed which can be a good thing if you know rehab.
If you can’t agree on a price that you are happy with then your only choice is to cancel during your due diligence period. Unless there’s verbiage in your contract forcing the seller to address repairs, but this is very unlikely.
It sounds like the the things you want fixed are exactly why the house is so far below value. Take into account the needed repairs. If your numbers still make sense than just move forward. If they don't, move on assuming the seller won't reduced the price any further.
@Jaron Walling Appreciate it. I understand with the market and all. Thankfully I have a great Agent so have good contractors available.
@Nick C. DD period allows me to back out. Only out DD of $250 and inspection costs. Still weighing options.
@Jarred Donalson Appreciate the advice Jarred! I agree. Re-run numbers to make sure they make sense and go from there.
What's the number break down? ARV, price, repairs expected, rent, etc. What's your plan for this deal? Factor the costs and re run numbers.
@Caleb Brown thanks for your response - after rerunning numbers, obtaining contractor quotes and laying it all out, I backed out as it was the best move. All the repairs would have made it safe but repairs that you couldn’t see. Still needed all cosmetics which would have put me in the red.