Hi All,
I need help figuring out how to respond to an inspection. I am getting overwhelmed by this and need someone to give me some additional options or ways to look at the situation, reassurances that I'm thinking the right way, or face punches for being whiny.
The house hunting has continued, I'm currently under contract to purchase a 2/2.5. The market here is a seller's market, but I believe it's cooling somewhat. I am looking to buy a condo. In this neighborhood there are currently 4 units for sale (including mine, so I guess it's not technically still for sale.)
- 1 unit at 160k is almost completely remodeled, except for the floor on the first floor - brand new kitchen, bathrooms, carpet upstairs, appliances - highest recent appraisal is $155
- 1 unit is listed at 137k but needs to be replumbed and the seller is unwilling to drop the price low enough to make it worth it to me as it needs substantial work prior to moving in - however the kitchen is mostly updated in this unit and has some newer appliances
- 1 unit listed at 145k which has an enclosed porch which I do not want, this is not a viable option and has a lot of odd diy fails that would need to be corrected
- the unit I am under contract to buy - listed at 135k and stupidly under contract at 135k
The inspection was this morning - I knew I was going to have to update the unit - new flooring and painting asap and then eventually new kitchen and new bathrooms. This is the most extensive work I will ever have done in a house and it is a lot, but seemed manageable.
It turns out the fridge, stove, dishwasher, and hot water heater are all 16 years old and past end of life expectancy. Of these items only the dishwasher is technically broken. The stove needs new stove top elements. The hot water heater shows no signs of rust. The fridge is in completely different condition than when I saw the unit.
The owner (rented for 15 years, never occupied) decided not to turn the power on in the unit so the fridge has been sitting for several weeks now with no airflow. The ice maker was full when the fridge lost power. There's now a giant puddle in the drawer at the bottom of the fridge and TONS of mold/mildew in both the fridge and the freezer. It's absolutely disgusting. My agent is supremely unconcerned by this and told me to just bleach it. I have allergies to mold and there is absolutely no way I will be cleaning this fridge.
There are also 3 electrical panels that are federal pacific (stab-lok) and must be replaced asap. This is a non-negotiable item as this is a safety item. If the seller will not cover the cost to replace them (I would like to do it) then I will walk away.
What else should I ask for? I have about $48k cash on hand - 33,750 of it is going to the down payment (25% - needed to get the limited condo review) and about $4k is going to closing costs.
I'll want (need?) to put tile down before I move in as the entire home smells like dog, it's super gross. So that's another what, $4k?
That leaves me with $6k, which is why I'm feeling a bit nervous about having a house full of 16 year old appliances.
My agent, who is being absolutely useless, is telling me that since we have the cheapest unit in the plan that I should basically be feeling thankful and that the base price included the "non-updatedness" of the unit, for her, this includes the appliances. She pushed me to go in at list price (I'm an idiot) because "we can renegotiate during inspection" and is now telling me we can only go for the panel replacement and nothing else.
I just can't think straight. I don't think it's excessive to ask for the panels+dishwasher+at an absolute minimum a thorough fridge cleaning. I don't think I can realistically ask for more, although it really grinds my gears and I want a few hundred for the fridge and hot water heater.
Then I have to figure out valuation and bidding strategy. I got a quote from someone today for about $2,200 for the panel replacement. Hot water heater replcacement, due to size (40 gal low boy) and location (wedged under stairs) was quoted between $1,034 and $12,85. No one would quote a dishwasher, they said just buy it from Lowes/HD and have them install it - so $500? So for the panels and dishwasher plus some extra for fridge cleaning $3k? Does that seem reasonable? Where do I start the renegotiation? $4k? $3.5k? Double it like the agent says to $6k? That seems like an awful lot.
There is also a home warranty in place, but that comes with a $75 service fee for each call.
What say you smart people? Can you help put this into persepctive?