So we opened escrow last week and I spent the whole week running an array of inspection on this property. We ended up paying for relatively market price for this home, but the price is on the upper end scale of market rate and it’s obvious that the sellers have done very little to maintain this home since they’ve owned it. The home is also in need of modern updates.
Home inspection turned up foundation issues, electrical, and plumbing. A level 2 chimney inspection was recommended as well.
I immediately setup appointments for each specialization and here’s some findings:
Foundation is fair, there are places in need for resupport and new beams in the crawlspace. Earthquake retrofit is outdated and needs modern fitting.
Old cast iron sewer pipe is corroded and leaking. Needs to be entirely replaced. Many pipe fittings to sinks need rework
Electrical wiring is old and outdated. Plugs don’t have grounding. Wet rooms like kitchen don’t have GFI plugs. Wiring is old cloth wiring. House needs full rewire
Chimney is structurally sound but needs multiple fixes before its considered safe
Backyard sprinklers are too close to home and caused excessive efflorescence in foundation. Need to disable sprinklers
All this totals close to $30k in repair estimate amongst an array of various smaller fixes
Also, although they are functional, the AC system is on its end term
The house needs updating as well. The owners pretty much left everything kinda just run it’s course and are hoping to get someone to buy high market value
Thing is , the home location is generally desirable. However the home did sit on the market for over a month cause they definitely priced it too high for is visual cosmetic condition
We’re taking into account all these straight up fixes this home immediately needs, in addition to future issues that will likely come in a home like this AND it’s need to modern remodeling
It’s has us stretched to the very limit of our budget
We don’t want to give up on this home just yet, but we feel we have a good case to renegotiate our price.
Would it be reasonable to renegotiate $30k lower? I actually want to negotiate even lower and beyond because there are other parts of the home that are at its end usefulness (AC) life etc
I am concerned we are walking into a money pit
What would be a reasonable renegotiation point?
I want to see if we can renegotiate something that I feel can more comfortably work with before i just give up and walk away entirely