He does so much around the property and we trust him with everything so it's well worth the discount.  

But, now that you do know about it, you're legally required to inform the buyer.My suggestion would be to figure out how much it would cost to remediate, and then try to negotiate a discount with the buyer.

Toll Brothers- Pricing/ negotiation for them is harder to get competitive, since they are in Planned Unit Developments and generally they won't advertise incentives/ discounts as much as the other builders.

I am a buy and hold investor who tries to buy the asset at a discount, force the appreciation by repositioning it, and then refinancing the property to withdraw my capital invested.

I'm going through the loan documents and noticed I'm paying for 3.376 discount points to get a rate of 5%. 

When I go into a deal I always assume I'm doing to sell at a 10% discount of everything else in the area when I do my numbers.

Sounds like you might have to lawyer up or possibly sell at a big discount

The loan will be ____ due on sale ____ not due on sale of Property.3.Buyer’s Closing Costs:[] Recording fees [] Note stamps [] Intangible tax [] Credit reports [] Loan transfer and assumption charges [] VA funding fee [] Loan origination fee [] Loan insurance premium [] Loan discount not to exceed______ [] Transfer Tax [] Wood Destroying Organism Report[] Appraisal [] Survey [] Title Insurance Policy _____________[] All Normal Closing Costs[] Other_______________________________________________4.Seller’s Closing Costs:A. [] Transfer tax [] ____________ Title insurance policy [] ____________ Attorney's fee [] Real estate brokerage fee [] Loan discount not to exceed _________ [] Satisfaction and recording fee [] Repairs or replacements, addition to those in paragraph 9, not to exceed $____________ [] Wood destroying organism report [] Appraisal fee [] Survey[] All Normal Closing Costs[] Other_______________________________________________B.

So your Electrical update would only be discounted approximately 5%. 

You can also get discounts if your house is up to stronger building codes.