Need help with homebuying issues raised by inspection!

[easjer]

We just got our inspector's report on the home we're planning to buy. It's older, 28 years, and he said that in general it's in good condition for a home of it's age. There wasn't much we didn't expect, but the inspection raised four large issues, including an outdated electrical system with a breaker panel/breakers that have a consistently high failure rate (and the breaker voltage is set too high), that the A/C shows indications of not functioning properly (and may need to be replaced), the air ducts need to be replaced because they are made of materials discontinued years ago due to high failure rate, and that the water heater is old and could go at any time.

We have an inspection clause built into the contract so that we can opt out (and presumably renegotiate) based on the inspection.

So how do we approach the buyer and what do we ask for specifically in addressing these concerns? Do we need to have further inspections by specialists done first or no (like electricians or HVAC folks)? We are not working with realtor - just directly with the seller. And we're first time buyers, so this is all new and really stressful!!! All advice welcome.

[mcornelio]

how much is the home worth?


zillow.com



not 100% accurate, but a good rough estimate ballpark figure.

[SpursWoman]

I just replaced all of the ductwork and had installed a brand new HVAC, which, after having to replace all of the sheetrock and upgrade the breaker box, was right under $20,000.

I would definitely bring in the HVAC people for a complete inspection ... and if you still want the house, do some hardcore negotiating with the seller to bring the price of the house down ... so you can tack on extra $$ with your lender for the A/C. Because that isn't an easy thing to replace once you're stuck. Same thing with the electrician, although to replace/repair the box isn't too, too bad.

My mom didn't follow through with the negative report on the original A/C and it completely crapped out after living here for about 6 months. We ran with window units for about 6 years, which as far as utility bills are concerned are much more expensive.

[CharlieMac]

Ask for a lower price based on the home inspection report. Based on who ever you have your home loan through, they might not let you buy the house themselves. You can also work them replacing those things into teh contract if they agree to it. Man, those home inspections are expensive.

[tlongII]

Tell the owner you want $10K off the price.

[MoSpur]

Bring it up to the seller. The seller will then ask what you want to do and then you can go from there.

[Jimcs50]

I would find another house. It is a major buyer's market right now and there are better deals out there, believe me.

[PM5K]

Sounds really vague, something usually fails, something that may need to be replaced, something that has a high failure rate, and something that may fail at any time...

Interseting....

[MoSpur]

If you are set in buying that house, work with the seller. If not, then move on. Its going to be a lot of work and $$$ to fix that up.

[Ed Helicopter Jones]

The A/C ducts and a new A/C, as SW said, could cost $$$.

A water heater replacement isn't too expensive.

A breaker box can be replaced. If your house has copper wiring and is in good shape the house is probably wired better than the newer homes.



I'd probably get a second opinion on the ductwork. If it's ok I'd probably ask for an allowance or discount on the rest.

You could probably replace the other three items for under $5K, but the ductwork could get really expensive depending on the house.

[easjer]

PM5K, that was me paraphrasing. I am not allowed to share the inspector's actual report, but these are among the best and most thorough inspectors in Houston and their language was pretty strong about four particular issues. Their feeling was that it HAD to be replaced/upgraded.

We'll talk with the seller and see what he thinks or wants to do. This is the most stressful/depressing shit. We had another one all ready to go and the seller backs out right before the contract. We find this one, same area, same fucking floorplan, great seller, and now major issues.

We really want to buy in that area. We really want out of our apartment. If this doesn't go through, I'm not sure what we'll do. There are so many issues tied into this.

:bang

[pache100]

We'll talk with the seller and see what he thinks or wants to do. This is the most stressful/depressing shit. :bang

Talk to the seller and tell them that you are willing to split the cost of the repairs/replacements with them. You can then finance your portion, or add it to your mortgage. My sister bought an older house (much older than the one you are looking at) and she had to replace the roof and put in a new water heater before it would finance. But, they added her costs to her mortgage, so she never even felt it; but the seller paid their part up front.

[PM5K]

These don't really sound like major issues, especially if the seller is willing to work with you.

As Ed said, a new water heater isn't very expensive, and you can upgrade to something bigger if you want, and it will probably be energy star so that will save you a little on the electricity.

A lot of the rest of the things you said were kind of vague so it's hard to give specific advice...

[easjer]

It will all depend on the appraisal - we've already added some costs to the mortgage for new appliances and were rolling in the closing costs (because the IRS has misplaced our tax refund, and that was to cover our portion). I'm not 100% convinced that the appraisal will cover much more, and this seems to be extensively more. I'm waiting to hear back from my mortgage broker on his thoughts/recommendations, and then we'll call the seller.

[easjer]

Fair enough, PM5K. I guess I'm a little overwhelmed right now - I have no idea how expensive air conditioning units are. I just know they generally have a $$$$ price tag. I have no idea how much it costs to replace a breaker panel and breakers or add GCFIs (there are none existing). I don't know if the TP drain running uphill is a problem that gets replaced with a new water heater.

I thought the extent of our problems would be window coverings for two story windows in a hurricane prone area and replacing the nasty tile on the ground floor. Those things I can deal with - I can research the cost of interior shutters and installation and price tile. But ducts made of discontinued material with high failure rates? What the hell does that mean? What happens if they fail? It sounds serious and scary.

[SpursWoman]

These don't really sound like major issues, especially if the seller is willing to work with you.


I'm still putting my house back together after my $20K non-major issue. :spin

I wouldn't take the warnings about the HVAC lightly. Unless you don't mind having no A/C or have a gigantic money tree in the backyard.

[easjer]

I don't take that one lightly. I take replacing the wax seal on the toilet in the master bath lightly (because I can do that myself).

I tried planting some quaters, but no trees grew, SW. Should I have tried bills?

[pache100]

I have no idea how expensive air conditioning units are. I just know they generally have a $$$$ price tag.

I don't know how much this will help, but I just replaced my central airconditioner in my double wide mobile home (1100 sq ft) last week. I have a regular A/C repairman and he probably cut me a break, but he installed a Coleman A/C (indoor unit and ourdoor compressor, but not the heating coil, which he said was in good shape). It was $2,780 installed. The Carrier unit for my size home (to replace the 13-yr old Carrier unit I had) would have been $3,400. You can probably inflate those figures slightly to accommodate the fact that you are in Houston (and this guy is in Seguin).

[SpursWoman]

I guess I'm a little overwhelmed right now - I have no idea how expensive air conditioning units are. I just know they generally have a $$$$ price tag.


Mine was $17,000 for the complete removal and replacement of all ductwork and the condensing unit/furnace...permits, etc. (it's a 5 ton unit for a 2000sqft house ... the unit alone is approx $4500.). Plus $1,900 for the necessary electrical upgrades and outlet installations. I don't have a number for the amount spent on drywall, paint, etc., because we aren't done replacing everything yet.

Yours might be a little less if you have an attic, we don't ... which made the ductwork very labor-intensive.

[easjer]

It does have an attic.

It's true that any other inspection will reveal the same issues, so I am hopeful that he'll work with us. If not, well, this place was also not meant to be (unhappy sigh). And that was a $350 well spent.

[SpursWoman]

And that was a $350 well spent.


Absolutely ... I believe the only reason why my mom bought that house after the laundry list of "Have to's" was because the lady was just trying to get rid of it and was selling for less than 1/2 it's market value. Don't jump into a money pit just because you like the area. I don't know what I'd do if I were forced to live in Houston with no a/c. :lol

[spurs_fan_in_exile]

:smchode: What's turning my stomach even more is the thought of renewing a lease with our dirt bag apartment complex. Keep your fingers crossed for us Spurstalk.

[Jimcs50]

I am telling you, it ain't worth it. There are hundreds of homes in that school district more than likely, to choose from. Do not buy a house just to get out of an apartment. This is the most major purchase in your life up til now, so you need to not rush into the decision. Replacing all of that ductwork and unit is $$$ and as SW says, you will have a real mess on your hands.

Look around more, I promise you, you will find someting w/ a lot less headaches.

[furry_spurry]

:smchode: What's turning my stomach even more is the thought of renewing a lease with our dirt bag apartment complex. Keep your fingers crossed for us Spurstalk.
Will they let you stay month-to-month while you find a house? Sometimes it costs a little more per month but is well worth it.

[SpursWoman]

Will they let you stay month-to-month while you find a house? Sometimes it costs a little more per month but is well worth it.



I was just going to suggest that as an alternative. :tu

[pache100]

Keep your fingers crossed for us Spurstalk.

http://i77.photobucket.com/albums/j77/pache100/fingersx.gif

[spurs_fan_in_exile]

Yeah, that's certainly a possibility, and it's certainly preferable to moving into a place that's going to cost us several sets of arms and legs, but I really fucking hate our complex. We were living there rent free for six months and I still felt like we were getting screwed on the deal.

[easjer]

Yes, I think we can go month to month, but it will be a jump from what we currently pay to market value, since my rent is grandfathered at the rate of 5 years ago.

It's not the school district, Jim, though your point is pretty good. We hope to be back home before having children of school age, and far, far away from Houston ISD. We're pretty specific about the area we want to be in, because of the research we've done. I've gotten to be very familiar with the Houston market and what will suit our needs best, and fit our price range. This area is the best I've found in terms of price, potential, everything. If this falls through, we may just go ahead and renew for six months and keep looking. Give us a chance to save up for the new living room furniture we need, anyway.

[spurster]

Ask the sellers to add in a 2 year Home Warranty plan that will cover all the might-be's pointed out by the inspection, well, for 2 years at least. Probably every home that old enough has a lot of them. Yes, your home will require maintenance which implies a off and on addition of real money (roofs, ACs, plumbing (pray hard about this one)).

[jcrod]

I had the sellers replace the box and some other eletrical work after the inspection. The seller also purchased home insurance. You want the seller to fix as much as possible before you agree to buy the house. Thats the whole reason for the inspection. I would have them fix everything, but since the a/c would cost a lot, at least make them fork over half. That is if the house is still in your price range after costs.

Make sure they also do pest and termite treatment.

[PM5K]

But ducts made of discontinued material with high failure rates? What the hell does that mean? What happens if they fail? It sounds serious and scary.

That's something they should at least tell you, if not explain it to you as well, but if they don't explain it to you at least if they tell you you can always Google it.

You should get more specifics about that, what is the material, why was it discontinued and what were the specifics of the failure?

If that leads you to understand that it's a serious issue, get estimates, actually get them either way so you can use them when you deal with the seller...

Now electrically that can be pretty serious, Google breaker and high failure rates, you'll find some interesting things.

Again, find out what kind and type and what type of failure they are talking about...

[MannyIsGod]

I think it should be pretty straightforward that if the inspectors told you the AC ducting/unit has to be replaced, then either make the owner replace them or have them adjust the price accordingly. If you want the house this seems like the only way to approach things. You have the leverage of being able to walk away, so use it.

[DisgruntledLionFan#54,927]

Bail. As fast as you can.

Just from prior experience alone, you are looking at roughtly $25,000 in upgrades.

Sounds like the house needs to be gutted, IMO.

[spurschick]

We really want to buy in that area. We really want out of our apartment. If this doesn't go through, I'm not sure what we'll do. There are so many issues tied into this.:bang

When I was buying my first home, the keyword was patience. I was looking in a particular area and thought I was dead set on living there, but every home I looked at fell through for one reason or another. I ended up finding the absolute perfect home in a completely different area. Don't let your hatred for your apartment cause you to rush into a situation, i.e. major repairs, that you'll regret later. I think you should keep looking, be patient, and the perfect home will find you.