Is my request for home repairs by seller unreasonable?

Question

I am a first-time buyer, and am under contract to buy a house in NJ. The disclosure statement reported no problems with the house, but the home inspection has turned up a few major ones: the A/C is 25 yrs old & needs to be replaced, the fence around the pool is not up to code, and the house failed the radon test (plus a number of other small issues:electrical work, poor pool maintenance). We've gotten estimates totaling about $10k for repairs. We've requested the major problems be repaired by the seller but they are refusing to pay for anything other than the radon remediation. (They are offering to leave a hot tub in lieu of making repairs!)

The house was on the market for quite some time and we think the sellers were hoping to sell the house for more, but I feel that shouldn't excuse them from making repairs. I love the house and hate to call off the sale. Am I missing something here? Are my expectations unreasonable?

The A/C was in poor condition and not working when the home inspector visited the house. The seller *personally* repaired the system, but has not provided any documentation for any repairs he made; simply says it is ready for reinspection.

Answer 1

I think all of your demands are reasonable, but the seller does not have to fix anything unless there is a serious safety issue. It's all part of the negotiation. Try not to "fall in love" with the house - there are other houses out there that you will like. Look at things objectively, decide if it's still worth buying the place with the additional cost of all the repairs, then go from there. In most contracts, problems on the house inspection gives you an opportunity to walk away from the deal without any penalty.

Answer 2

The seller's obligation to make repairs depends on how your contract is written. If it is a standard NJ broker's form of contract then the typical requirement is that the structure must be ok and major mechanical systems must be working. So as long as the A/C works and blows cool air, the seller does not have to do anything. The fence around the pool must be in accordance with the code in existence at the time it was built. The radon must be remediated. The electrical system must be in complete working order and in accordance with code. As long as the pool is working and not leaking then you cannot get a credit for the poor maintenance.

Most likely your contract provides that if the seller refuses to repair these items or give you a credit for them then you have the right to cancel the contract and get your money back.

I always recommend that the buyer obtain estimates for the repairs and request that the total amount be deducted from the purchase price. That allows you to have the repairs done yourself, to your satisfaction. If you require that the seller make the repairs prior to closing then you may not be happy with the quality.

Try revising your estimate to include only the electrical work, the radon remediation and the fence (if necessary). Then ask the seller to purchase a home warranty for you that will cover the replacement of the A/C in the future.

(By the way, in NJ the cost of radon remediation is about $2000 in most cases. If you like the hot tub and think it's worth at least that much then it might be a good idea to accept the hot tub and take care of the radon yourself.)

Answer 3

Some of your expectations may be unreasonable.

1. Is the AC not functioning or is it just old? Remember you are buying a used house. It would be unreasonable for you to ask the seller to replace something that still works.
2. The pool fence may be grandfathered meaning it was built to code at the time is was constructed. If that is the case, once again unreasonable for the seller to repair/replace it.
3. Electrical repair is a reasonable request if it is not functioning. If it's not up to code, once again it may be grandfathered. In my state, MD, non functioning electrical is covered under property condition of the house and must be repaired for the buyer.
4. As for the poor pool maintenance, once again, depending on the issue, it may be unreasonable to ask for money concerning this repair. What was not maintained? If the home was sold with a functioning pool then some $$$ towards repairs for this would not be unreasonable.
5. Radon is a reasonable request to be repaired. In MD if the Seller chooses not to fix it, he must inform all future potential buyers of this fact as it has become a material fact.

Maybe the Sellers do not have the money to make the repairs at the negotiated price. Or maybe you have made other unresonale requests leaving the sellers with a bad taste in thier mouths. If you really want the house be prepared to negotiate on these points and give in on a few so the Sellers will feel like they have won something and you will feel like you got a deal too.

As I tell my clients, keep your eye on the prize.

Answer 4

IF YOU WANT THE HOUSE you are going to have to be reasonable, otherwise they are going to just call off the sale. If they dropped their price quite a bit then they probably don't have too much room to give on the price .. they may have a loan they need to repay, and the real estate agent is not free, etc. It's actually unreasonable to expect them to replace the A/C and fence etc. since this IS an older home. I think their offer to take care of the radon is reasonable since in reality that is the only safety issue. Also if you had a leaky roof or something like that then maybe you can ask for that to be fixed but complaining about "poor maintenance" and "the fence not being up to code" , etc. if you push it is going to loose you the house. You saw the house and the condition when you made the offer ..it's unreasonable now to be complaining about these things. House inspectors come up with a lot of stuff so that they don't get sued later for missing things. These things are NORMAL ... I would accept their offer to fix the Radon problem and take it as it is .. THERE IS NO PERFECT HOUSE and if you call it off you are probably going to regret it later...

Answer 5

I am currently selling my home, the only way I would refuse to do those repairs is if the buyer is getting the house far below asking price. As far as the fence most likely you will not be required to fix it, so I wouldnt worry about that you have to pick your battles if you want the house. Most real estate is bought as is. You are not buying a brand n ew home so you should expect that you may need to invest some money. When I bought my house I figured the cost of repairs and what i was paying was still well within the range of fair market value. You need to look at that too, if the house is worth 150,000 you are paying 110,000 repairs cost 10,000 you are still getting a good deal. Look at it from all sides and the pick the major things you would like the seller to fix. With some give and take you should be able to reach a fair compromise. If you want a perfect house with no issues, go buy a brand new one, all houses will have thier issues and require things to be fixed to your standards.

Answer 6

the short answer to your question is NO you are not being unreasonable. it does sound like there can be some problems with the house and if you believe they should be repaired then be prepared to walk away. i am sure there is a reason why the house was on the market so long.
on the other hand if the biggest item left is the A/C and you go back to the house and it is working properly now then you may want to consider accepting the house if the seller pays for a homeowners warranty. the best company that i have found out there is american home shield. you can ask your realtor for more information about the program. simply put it is a homewoners warranty that will protect all major systems and appliances AFTER you close on the house.
good luck

Answer 7

Good for you that you had the inspection! Hipp Hipp Hurrah! You have options; #1 walk away, #2 continue to negotiate what is repaired, #3 accept it as it.

Me? I would negotiate a new a/c, and keep the hot tub. You aren't purchasing a new home, so things will not be perfect. As for the radon testing, if the house were closed up for days, that test will fail. Ask any inspector. As for minor electrical issues, have a certified electrician come over and repair. It gives you piece of mind that the repairs are done property. As for the pool and the fence, that's a luxury most folks don't have. I'd bite the bullet here and fix that yourselves. Good Luck! Realtor/Appraiser Minnesota

Answer 8

Take the $10K off the offer price and have the work done to your specifications rather than force the seller to make repairs which may turn out to be cheap fixes rather than quality work in order to go through with the sale. Personally I would walk away from the transaction before you find other things to fix. It's your money that you need to concern yourself with. The seller's attitude may be the reason that the house has been on the market so long. If they are unwilling to negotiate, go find another place to buy. Maybe they don't really want to sell???

Answer 9

If the sellers refuse to fix the problems, take the amount of repairs off the offer price. A/C is expensive. I'm not sure of NJ's state laws, but here in AK fencing or railing has to be up to code in order to close.

Answer 10

"Let the buyer beware" is a real estate term used in selling. However, if the seller was dishonest in their dealings, you should be able to cancel the contract or purchase for less money than which was offered. Tell the agent that you want to cancel to push the seller to a mutually agreeable arrangement.