Realtor · Jacksonville, FL · Member since 2013 · 227 posts · 35 votes
The duplex I have under contract has a few minor things to repair. One of the things I'm most concerned with is the HVAC system. The exterior unit and the furnace was manufactured in 1987 (which is when the house was built. The inspection called for a few repairs but didn't recommend a replacement.
I feel like due to how old it is, it could break down within the next year or so and that's a pretty big expense for me to get hit with.
I was thinking about asking the seller to replace it. What do you guys think?
Also, just to note, I was going to pay what he was asking for, maybe I can even ask for a couple thousand knocked off the purchase price? Idk, let me know what you guys think...
Contractor · Glen Cove, NY · Member since 2016 · 209 posts · 89 votes
9y
I would call an a local HVAC company with a good reputation to survey see what they charge for the components and see what they charge for a service agreement on the existing. They should not charge for the suvey. They will be better to give you guidance on your unit and make suggestions.
Realtor · Jacksonville, FL · Member since 2013 · 227 posts · 35 votes
9y
I did that. Repairs cost $435
Replacing both systems is $7845.
Because it's 30 years, I personally feel like it should be replaced because who knows what could happen in a year or two. Especially considering the fact that I'm House hacking it and must do so for at least 3 years because I'm using a down payment assistance program that requires me to..
Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
9y
You can call for the repair but age per se is not an issue from an inspection. You could try to negotiate price, but if you WANT the deal, don't go overboard.
Realtor · Jacksonville, FL · Member since 2013 · 227 posts · 35 votes
9y
I want the deal, I just don't want to be desperate. I went ahead sent over an addendum asking for him to replace the HVAC systems and a few other things.
Guess we'll just see what he says. This is my very first time ever being under contract so I'm still learning how to negotiate and all that.
Tulsa, OK · Member since 2016 · 119 posts · 23 votes
9y
You can go two ways. You could offer the price of the replacement of the furnace or leave it. If its not broken don't Fix it. Just get it looked at to see how it's performing. If its been fine for almost 30 years, it will still be fine.
Liberty Hill, TX · Member since 2016 · 85 posts · 96 votes
9y
@Jonathan Perez Merry Christmas, I was in a similar situation 3 years ago when I bought my primary residence here in Texas. The house was 2 stories and had 1 unit servicing each floor, both original equipment ( Brand was Comfortmaker and units were manufactured in 1986). We had negotiated a price a little lower than list price and had another $2500 in seller concessions. I had my realtor ask seller about replacing HVAC and buyer refused, we thought we were already getting a pretty good deal(appraisal came in at $7,000 over contract sales price) and decided to move forward with the purchase. A year later we ended up having problems with one of the units (leaking evaporator coil) and ended up replacing them both. Home warranty covered some of the repairs and we had to come up with difference of about $5,000 (0% loan from HVAC company for 12 months). I don't know what kind of deal you are getting or if SC is a buyers or sellers market which can impact how much room there is for negotiation. If units are functional and inspector did not find any issues, I don't think seller is going to agree to replace them just because of the age of the units. @Sid Leibowitz made a good point in regards to the service agreement and I would also recommend a home warranty, just in case.
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
9y
My furnace just died , I bought the house in 1984 , the furnace was 10 years old approx at the time . It just died last night . So that 30 year old furnace still could have 10 years left in it . I see you asked the sellers if they will replace , I bet they will say no .
Realtor · Jacksonville, FL · Member since 2013 · 227 posts · 35 votes
9y
They probably will say no. If so, then I'll decide what I want to counter negotiate and take it from there.
If he says yes, that would be amazing, but yeah chances are slim.
Rental Property Investor · Tulsa, OK · Member since 2015 · 9 posts · 4 votes
9y
Won't hurt to ask! My furnace at my personal residence was installed in 1978, which is the same year my house was built. I've had to fix minor things with it the last 9 years. From my experience, the older furnaces last forever. I don't plan on changing it until it costs more to fix than replace.
Investor · Appleton, WI · Member since 2012 · 1k+ posts · 464 votes
9y
You did look at the house before you put an offer in and saw the furnace. As long as it is in working order, I do not see what grounds you have to get a replacement. It also sounds like you are already looking to counter back if the seller says no. Seems like a lot of Hassle. You should be able to get a small HVAC company to install a quality product for a lot less than $7,000+. Just have cash and save a ton. All of the places that I have seen that offer financing, even 0%, also charge at least $1,000 more than necessary per unit....
lastly, I like buying properties with old working furnaces. They are quite simple and tend to last a long time. Worst case I spend $1,900 and have it replaced. The best part then is the energy efficient savings. So when you ask for him to pay for new equiptment are you also going to adjust the current price up for that value and the energy efficiency savings? Just some food for thought. Love to hear how it plays out :)
Realtor · Jacksonville, FL · Member since 2013 · 227 posts · 35 votes
9y
Calvin Ruth how do you maintain it? The guy that inspected for me, recommended a twice a year maintenance servicegood idea to me, but I mean, what you think?
Deerwood, MN · Member since 2014 · 184 posts · 122 votes
9y
I have never paid someone to "maintain" a furnace. A tenant asked me to have a furnace checked because she has lived there 2 years and it hasn't been " serviced". I didn't do it and I don't know why you would. My thought is just fix what breaks. Curious what others think of Maintence Plans.
Deerwood, MN · Member since 2014 · 184 posts · 122 votes
9y
I also agree older units last longer. I replaced a blower motor on a 30 year old unit a couple years ago. I'll keep fixing them and only replace a furnace if needed.
You did look at the house before you put an offer in and saw the furnace. As long as it is in working order, I do not see what grounds you have to get a replacement. It also sounds like you are already looking to counter back if the seller says no. Seems like a lot of Hassle. You should be able to get a small HVAC company to install a quality product for a lot less than $7,000+. Just have cash and save a ton. All of the places that I have seen that offer financing, even 0%, also charge at least $1,000 more than necessary per unit....
lastly, I like buying properties with old working furnaces. They are quite simple and tend to last a long time. Worst case I spend $1,900 and have it replaced. The best part then is the energy efficient savings. So when you ask for him to pay for new equiptment are you also going to adjust the current price up for that value and the energy efficiency savings? Just some food for thought. Love to hear how it plays out :)
"Worst case I spend $1,900 and have it replaced. The best part then is the energy efficient savings."
Are you saying when you replace a furnace you have energy efficient savings?
I have never paid someone to "maintain" a furnace. A tenant asked me to have a furnace checked because she has lived there 2 years and it hasn't been " serviced". I didn't do it and I don't know why you would. My thought is just fix what breaks. Curious what others think of Maintence Plans.
Your tenant does replace the filter I hope? My HVAC maintenance guy advices maintenance every 2 yrs.
Investor · Appleton, WI · Member since 2012 · 1k+ posts · 464 votes
9y
Depending on the condition of the older furnace, they are 60-80% efficient. New models I install are roughly 93% efficient. As far as servicing goes. Changing the filter is the best choice hands down. I never have someone come service or clean. I can do that myself, doing a check and wiping out with a little vacuuming as well...
Realtor · Jacksonville, FL · Member since 2013 · 227 posts · 35 votes
9y
Michael Noto Yes, I'm willing to walk away but only depending on how big the issue is, which, although it COULD be a little risky, considering the age of the HVAC, I think it should be fine. If it was to breakdown sooner than later, I'll look into a less expensive alternative or something.
Realtor · Jacksonville, FL · Member since 2013 · 227 posts · 35 votes
9y
Kyle Hipp I understand the "doing it yourself" thing, but I'm looking to scale up and don't want to start with a system that relies on ME to maintain anything.
Even tho I COULD do it in the beginning, I want a system in place that does so without me being a reliant.
Investor · Appleton, WI · Member since 2012 · 1k+ posts · 464 votes
9y
This seems to be your first property. My recommendation is to actually learn these things now. The 20 minutes it takes to take a look at the furnace, vacuum it out and do. Couple checks will definitely be worth the $200+ the company will charge. The best way in my opinion to develop great systems is to develop the knowledge up front.
Cincinnati, OH · Member since 2013 · 1k+ posts · 1k+ votes
9y
@Jonathan Perez Since you've already put in the counter, see what they say, but most likely they will decline. However, you should ask them to have it serviced it and provide you a receipt. You don't want to lose the deal so a lot of this in how the ask comes across more than anything else. Be upfront and say you're nervous that the HVAC going out shortly after you buy and see if they have other ideas on mitigating that concern.