Real Estate Broker · Raleigh, NC · Member since 2017 · 174 posts · 69 votes
I currently have a SFR under contract, just finished the home/termite inspection today. There is a lot that needs fixed or replaced and I already negotiated price lot lower then asking price prior to the inspection. What are my options at this point? I feel like if I fix/replace most of these it'll cost me way too much, which I won't be able to afford after all the down payment and closing costs, this is an investment property keep in mind that I want a tenant to move in to so I need to have it move-in ready so I need to do a lot of replacing and fixing around the house. Can I negotiate to the seller to lower the price even more or should I back out of this completely? I don't know which course of action I should take. Please advise.
@Peter K. You can have both your attorneys discuss what compensation and/or reductions can be made to accommodate these repairs. At the same time, the willingness for the seller to reduce their price may have been because they knew of these issues. If this is the case and they won't reduce anymore, the ball is in your court. You can pull out of the contract due to home inspection results and get a return of your EM, or you can continue with purchase and correct the issues as time passes and cash flow begins to come in. I would obviously fix the major issues and/or the issues that may make the new tenant leave. Also keep in mind of repairs that can get the tenant hurt and then sue you.