Post inspection...advice needed!
Hi, We are close to making an offer on a 2br condo unit in a 3 unit brownstone. We had the inspection this evening and the overall rating was between average and above average. We are close to the asking price of the place and the seller broker is refusing to budge with the asking…
Hi,
We are close to making an offer on a 2br condo unit in a 3 unit brownstone. We had the inspection this evening and the overall rating was between average and above average.
We are close to the asking price of the place and the seller broker is refusing to budge with the asking price.
The big ticket items following the inspection are:
* New water heater: $1500
* 6 new windows: $6000
* Roof replacement in next 5 years: $5000
* The big one…facade renovation: 20k-100k.
Now, I understand the roof is long term, the windows and heater are not huge issues, however, the facade piece is a bit scary. Basically, from the outside the two large column pieces are in quite bad shape (flaking, a bit cracked and a bit worse for wear!). The inspector said to leave it for another year will mean the 20k will become 30k to fix. Thing is, not sure if the 20k means that will take care of it, but it just won’t look as nice as spending 100k.
Anyway, first time buyer and not really experienced in this and just looking for some advice. Like I said, the seller doesn’t want to budge on the price, even following the inspection..and I’m unsure what to do next.
Am I being unfair with looking for an adjustment?
Are these sort of things typical when buying into a place like this?
Thanks for reading this somewhat of a ramble 🙂
Hi, I don’t know much about buying property as I haven’t actually purchased anything yet……BUT, with the investment in the inspection yielding a potential 100k problem to fix, count your blessings you got enough information to make an educated buying decision.
The seller being unwilling to budge on the price says alot….I say walk on the deal.
Hi guys,
Thanks so much for the feedback. This is a wonderful web site and I appreciate the responses. It is certainly a condo and the maintenance is currently in the $300 range. Thinking about it (and doing a lot more reading) I can see what you are saying Slopefarm about some of these items being part of regular costs of owning a building. The windows I can live with, the hot water heater, fine 1.5k I can handle.
I guess the biggies are the roof and the facade. The roof, another 5k in five years is also not all that bad, however, the area that appears to have the most damage on the facade are the two columns on the stoop. As a newbie to brownstones, can this sort of thing result in structural damage to the building? I don’t want anything to collapse! If it is merely cosmetic, we can probably live with it for a few years before getting fixed.
Thanks again 🙂
I agree with arkady. Additionally, I’m still not clear on whether this is a coop or condo, given the maintenance and restrictive by-laws. If a co-op, there may be an underlying mortgage and perhaps the facade can be handled with a refi and takeout, with a small bump in the maintenance to cover the increased borrowing. Not sure of how a 3 unit brownstone condo would work in that regard.
Also, inspectors are likely to be conservative on the time frame for replacement, so you can’t come back and say “why didn’t you tell me about the roof.” The other costs don’t worry me because you would have those, without sharing, if you owned your own bldg.
The facade issue is discretionary – whether you just patch & paint or get total refurbishing. If you’re considering going ahead w/ the purchase, I’d try to find out what the other tenants are considering (if anything.)
“Small” stuff aside, your inspection has uncovered a pretty decent sized issue with the facade. Of the solvable kind, but not one you should have reasonably expected. I think you’re within your rights to ask for some kind of adjustment.
Or walk. It’s $750 down the tubes but part of the process. Good luck!
New water heater: $1500
* 6 new windows: $6000
These items are up front and personal.
The other two items would be spread over other owners I assume? Not all on you?
There will be a better opportunity in the future if they won’t give up the $7500.00. You have shown your sincerity in your offer (less the $7500.00) by paying for an inspection. If they think another purchaser is going to pay all cash without an inspection, they are not serious about selling and in this market you have to move on. That new inspection for the supposed new buyers is going to be different?
With ownership in real property, you need to take a longer time perspective. Your portion of a roof job won’t be that much, or it may last a few more years with patching. It took quite some time for the deterioration of the facade, it will take some years to play out the fix.
Jeez, you’d think the broker would cough up part just to avoid losing the sale.
1 year on 100 y/o building is 1%. How the deterioration in 1% of time ensures 50% more expensive renovation?
if you cannot afford the worst case scenario..walk away…the property will not appreciate so that you can draw out cash on a refinance to pay for a 100000 repair