We are in the final steps of a home purchase in Reno, NV. Reno is a very hot market right now, most properties are going under contract in a handful of days.
Here are the basics on the home including a link to our decision process that led to this home:
$525k list
Originally offered $495k based on agent's comps, they countered at $519k. We looked at a bunch of other houses, and then circled back to this one after making offers on several others. Offered $510k, they accepted. Currently awaiting appraisal.
1950 sq ft
1 acre lot
Built 1979
Needs nothing right away*famous last words
In an awesome neighborhood with public land, MTB and hiking trails nearby. My wife grew up in Reno and this is her dream area.
18 mile bike commute, will require e-bike or multi-modal
On the same end of town as our family
I forgot to mention that it is on a well and septic system (this will be important later!)
Since then, we have received an appraisal for $510k and gone through all the inspections.
Home inspection revealed a significant amount of sand and sediment when the bathtub was run.
Home inspection revealed a number of items which the seller has declined to address (missing roof tiles, shoddily repaired garage door, microbial growth in attic & crawlspace). Probably $2500 to have contractor fix.
Well inspection could not be completed because the sand caused the pressure to spike during the flow test.
Septic inspection revealed that the leach line was not accepting waste.
16' of leach line replaced, septic inspection now passes.
New submersible pump installed in well, pump level raised 20', flow restrictor installed on pump inlet. $7500, paid by seller.
Well inspection completed.
Three plumbers brought out to try and remove sediment from plumbing and fixtures inside the home. I spoke to the last plumber, there was still sand coming out of the tub when he left yesterday.
Sediment filter being installed today. This is a back-purging valve and stainless steel valve.
Received quote for $12500 from well company to connect to municipal water (there is a meter by the mailbox). Not sure why the seller didn't pursue this option first...
The plumbing in the house is allegedly working now, but I'm sure the water heater and all fixtures will experience a reduction in life due to the sand that was run through them.
We are going out to the property tonight to check things out.
The original closing date was today. We have signed an addendum to extend to this Friday.
My question:
How should I approach negotiation? My initial response is to ask them to reduce the purchase price by $12500, as I have no guarantee that the problem has been resolved. We probably have $2000 into inspections, etc.
@Axecleaver