Newsflash: Just about done with the contingency process…have a few questions

Long story short, found a home in Northern California that is in a great neighborhood for $400k. Comps were in the $460s-500k. Of course there is a reason why this home was listed for $400k. It was built in the 1970s and pretty much not touched since then. We offered $385k and was countered up to $395k which we accepted knowing that inspections would show a lot giving us negotiating power.Pest inspection – couple water stains here and there in the house, mostly dealt with outside overhang which we plan to take down within the first year. About $1500 worth of repair Home Inspection – Nothing major as well. Biggest issue was the house had 100amp electric Zinsco panel that had a few breaker switches double tapped. Cost to upgrade to 200amp panel about $5500. Ceiling and some floor tiles is asbestos (cost to remove about $5k) Foundation Inspection – Home is based off a cement perimeter with 44 jacks. Home is within ¾ of an inch so it has settled pretty well. About 20 jacks need to be replaced as well as a load bearing wall needs to have support due to a major dip in the floor. About $14k. Pool Inspection – Pool is a gunite plastered pool about 13k gallons built around 1980. Some tree roots are lifting the pool decking. Pool needs to be replastered and tiled. Cost to replaster and repair some minor issues were about $12k-18k.With everything that was found in inspections, my realtor only wants to get closing costs covered and not try to renegotiate purchase price. Closing costs are about $9500. I feel like this isn’t enough. I feel like we should either go for closing costs covered and a price reduction to maybe $390k or closing costs and atleast get electric panel upgraded at the least. We really like this house and see the potential. I just don’t want to pay too much knowing there is $30-40k worth of work when the house also needs to be updated.

Read more at https://www.reddit.com/r/RealEstate/comments/6pjrn6/just_about_done_with_the_contingency_processhave/?utm_source=ifttt

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s