The boilerplate "Here's our offer -- contingent on a satisfactory home inspection" seems a little odd when even our own thoroughly amateur inspection reveals problems.
Given the location, general structure, location, fairly reasonable price, location, design, etc, we're fine with knowing we'll have to get new windows (etc, etc) put in.
But. Low-ball on the price, noting the visible flaws which led to that low offer, and make it contingent on no other problems turning up?
Or, regular offer, contingent on 'satisfactory' inspection, and assume tons of negotiations to follow?
Or, another route I'm not thinking of? For the first option, I'm assuming the services of a home inspector/lawyer might be useful to detail said visible flaws. We can notice "antique" (I am being charitable) windows, but not rot around same that would make replacement more expensive, for example.
2007-01-06 22:14:51 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
We assume there will probably be new problems turned up during an inspection, and negotiations to follow from there even if we 'low-balled' the initial offer...
2007-01-06 22:53:30 · update #1
it is common in many places to..with a poor inspection..to ask for a rebate for.. these expenses..(from the seller )
you can refuse to complete..if you don't like the inspection report..or simply ask the seller to reduce / rebate on the price...from this poor inspection
make sure your inspector..does look into your ..specified points..
if you love the home and love renovating..go for it..
and rot is a serious problem..as is mould..carpenter ants, termites..etc..
get the Home Inspection...it is common..to have a reduction /rebate with a poor inspection..(the seller can counter this reduction/rebate as well)..
good luck
2007-01-06 22:41:19 · answer #1 · answered by m2 5 · 0⤊ 0⤋
Although you can see obvious problems yourself, a home inspector will be able to spot things you can't. There might be major structural problems with this house, or some other extremely expensive repair that you'd rather not bother with that could cause you to fall out of love with the house. Better to know that before you buy, than after. A home inspection in writing, detailing the problems, is always a good negotiation tool. How about just telling the seller that you're interested but would rather not make a firm offer until after the home inspection? That way you're basing your offer on concrete (no pun intended) evidence rather than your suppositions about the home's flaws.
2007-01-06 22:43:02 · answer #2 · answered by pvpd73127 4 · 1⤊ 0⤋
This is the biggest investment of your life--without a home inspection you have no idea if there are latent flaws that could cost tens of thousands of dollars to fix, and then you'll have no recourse.
Make an offer contingent on the home inspection. The contingency allows you to back out if it turns out that there are problems with the home that will cost so much to fix that the deal isn't such a deal and the seller isn't willing to fix them.
Once you have the home inspection in hand, you'll know how much it will cost to fix everything. You use that data to renegotiate down the line: if you're willing to pay X total, and it will cost Y to fix everything, then your bid is either (X-Y) or it's (X upon everything getting fixed).
There's no correct answer on how much to bid: how much do you like the house, how badly do the sellers want to sell, how rational are they about the price they established, what other options do they have (who else wants to buy the house?, are they willing to stay there?), what other options do you have? It all comes down to what you're willing to pay and what they're willing to sell for -- and if there's no intersection, the sale isn't going to happen.
If you're buying a house for an investment, then you don't want to fall in love with any given property, and you want to be firm in your low price offers and be willing to walk away. If this is your dream house, and any other house would be a disappointment, then you're going to have to expect to pay a little extra unless you're lucky, because the seller has all the leverage.
2007-01-07 07:07:30 · answer #3 · answered by Augustus_Hand 2 · 0⤊ 0⤋
Don't assume you just discovered that the windows are bad. If the owner isn't really stupid he noticed that and the house is priced with that in mind. If it's listed with the MLS you should get your own buyers agent (FREE). Compare similar houses in the area and see what they sold for, then figure out if your house has been reduced enough to take the repairs into consideration. Always get the inspection to find the things that you didn't see. Cracked foundation, termites structural damage. plumbing. etc etc. Make your offer, get an inspection, go from there.
2007-01-07 00:47:42 · answer #4 · answered by zocko 5 · 0⤊ 0⤋
You can put in an offer for any price you choose. More than 15% lower than asking price is probably wasting time though. A home inspection is a good idea, but if you are able to inspect the major systems in the home yourself they aren't really needed.
2007-01-06 22:28:29 · answer #5 · answered by morris 5 · 0⤊ 1⤋
Get a Professional Housing Inspection report. Then you have something to base your offer on as well as whaat it will cost to remedy problem areas.Most Housing Inspectors are well versed in home repair cost in your area.
2007-01-07 02:08:05 · answer #6 · answered by Stephen L 1 · 0⤊ 0⤋