What to do

6 Replies

So I have a house under contract, it was listed at 140 and got it down to 114. The house was originally a flip and after the inspection I found a lot of issues everything from structural to heating and air . I'm curious if I should break the contract, but the seller said he will fix everything listed in a few years Im looking into turning it into a rental

Any thoughts?

Originally posted by @Tom McGrail :

So I have a house under contract, it was listed at 140 and got it down to 114. The house was originally a flip and after the inspection I found a lot of issues everything from structural to heating and air . I'm curious if I should break the contract, but the seller said he will fix everything listed in a few years Im looking into turning it into a rental

Any thoughts?

 My concern is, if it wasn't done right the first time, how do you know it'll be done right the second time? Will you have to pay an inspector again? What if it's still not right? Also, listed at $140k and down to $114k doesn't mean much. I can list a house for $200k in a neighborhood full of $100k houses, doesn't mean if you got me down to $140k you got a good deal. Make sure you're looking at recent sold comps to determine what a good price is. 

i requested for a licensed contractor of my choice. I also requested for him to pay for the inspection After all work is completed. Total cost for morgage taxes and insurance will be 922 a month and  in the area the average  3 bed room single family is 1400

Sounds like a fair deal. What do you think was missed in the first inspection? I just worry that if the work was this shoddy, what the heck else is waiting to bite you in the butt in 6 months? Lots of things won't rear their ugly heads until you get just the right rainfall with the dishwasher running and the master bath toilet flushing at the same time. Silly example but just making you think a bit about what sins are buried in the walls, under the slab or in the attic. 

Other than that, numbers seem good and, if you're buying this for your personal residence, if you like it, I love it :)

@Tom McGrail  

I closed on a property last week that was previously owned by a slumlord.  MAJOR mistake was specifying what needed fixed and I didn't specify MY contractors.  The seller did the cheapest repairs possible, I'm cheap but didn't realize it was possible to be as cheap as the seller was.  Literally a piece of rotten wood was "fixed" by layering caulking over it... I screwed myself, but lesson learned.  If the seller agrees to pay for repairs based on quotes from your contractors your probably alright. But, I would make sure home inspector, chimney inspector, HVAC service technician, etc are all top notch.  

@Troy S.   @Bryan N.   the list of problems is almost 4 pages long, and that is only what we could see. I'll keep you guys posted on whats going on 

What did you mean the seller would fix over a few years?

Escrow 1.5 times the cost of repairs and give 90 days at the furthest period, otherwise I'd walk off!

Medium logoscopiccroppedblue2Bill Gulley, General Real Estate Academy | https://generalrealestateacademy.com