WWYD Home buying issue

[Lisa loves Pooh]

I think the thing people forget when buying homes these days is there is no such thing as a perfect home. With the HGTV unrealistic home buying experiences, homebuyers think they can just move their things in and call it good.

In your situation, if those things need to be done and the house is priced appropriately, I wouldn't hesitate one bit to buy if it checked all of your boxes. Now, if the house is $100,000 over the appraised value and needs all that, nope. The OP is squabbling over $3000, which in the long run amounts to about $1/month...yes, the inspector should have found the mold, but the OP should have as well....

Well--when we shop, we don't expect HGTV perfect, but even if a house was well below our budget, it wouldn't mean we would have the ability to take on needed repairs immediately in the 10s if thousands of dollars.

Our current home we did by as is, but we only had a small amount of cash for repairs from inspection. Our limit on extras was $10K but that was including the painting. If it came back that a roof and hvac were needed, we would have had to walk. Not because we demand HGTV-- but because the cost of acquisition of a fully functioning home exceeded our cash. If such things were disclosed, we would not look at a home because we would not be able to afford costly repairs from the get go.

 

[Happy Snowman]

Yes, house is priced ok. Appraisal hasn't been done yet, but we are buying at almost $30,000 less than the assessed value; $100,000 less than what the house right next door to it is listed for (and that house is ugly with a weird layout. It was added on to and no thought was given to the "flow" of the house); and $130,000 less than one that is of comparable size/lot size on the other side of the lake that, IMO, needs a lot more "cosmetic" work done to it.

We decided that since this is going to be our forever home we don't mind putting in the work or money. DH just retired and I'll be retiring in the near future. We don't plan to sell it.

Sounds like a bargain, I'd jump at it too!!

Well--when we shop, we don't expect HGTV perfect, but even if a house was well below our budget, it wouldn't mean we would have the ability to take on needed repairs immediately in the 10s if thousands of dollars.

Our current home we did by as is, but we only had a small amount of cash for repairs from inspection. Our limit on extras was $10K but that was including the painting. If it came back that a roof and hvac were needed, we would have had to walk. Not because we demand HGTV-- but because the cost of acquisition of a fully functioning home exceeded our cash. If such things were disclosed, we would not look at a home because we would not be able to afford costly repairs from the get go.

You can finance those types of repairs when you buy as well and in the case of the poster above, even adding that little bit to a mortgage if they needed to, they still will come out way ahead from what it sounds like. Set the closing so you have time to get the work done before you move in. Our last home needed a lot of upgrades before we moved in. We gave ourselves a month between closings so the work could be completed. The house was priced right for the condition of the house and our upgrades were easily added to our mortgage and we still had equity when we were done. The point being, if a house is worth $300,000 but needs $50,000 in repairs and it's listed for $250,000, they took into consideration the repairs already and then asking them to go down another $50,000 just isn't reasonable....

 

[StephMK]

It sounds like the house has everything you want and is in a great location. I'd be cautious of the mold but it wouldn't make me run immediately. It is possible to have a minor area of mold that is not the expensive, super dangerous black mold that you hear about.

We walked away from a house over $5k and I still kind of regret it 8 years later. I can still remember the floor plan and drive by it on the way to dropping off DD sometimes. Like a PP said, over the term of a mortgage, a few thousand does not make a huge increase.

 

[tcufrog]

I would still get a mold inspection before moving in.

 

[Octoberbride03]

Yes, this is what I have always thought and heard....
My inlaws house needs a lot of updating.
Has not had updating since they built it 25 years ago. (other than a new roof, which is kind of to be expected/necessary) I mean, this home still has 25 year old carpet, etc.

Oh man carpet that old just cannot die My parents bought our old house in 1975 and it came with brown shag carpet in the living room, dining room, steps up to the second floor and second floor hallway. They sold it in 2003 while i was engaged and that carpet looked as new as the day they bought it. Ugly as hell, and you couldn't kill it! God knows we tried, the downstairs toilet off the kitchen exploded 1 night and ruined half the house straight down to the subfloor, but the half that had that brown carpet was completely shielded. UNBELIEVABLE

 

[Lisa loves Pooh]

Sounds like a bargain, I'd jump at it too!!



You can finance those types of repairs when you buy as well and in the case of the poster above, even adding that little bit to a mortgage if they needed to, they still will come out way ahead from what it sounds like. Set the closing so you have time to get the work done before you move in. Our last home needed a lot of upgrades before we moved in. We gave ourselves a month between closings so the work could be completed. The house was priced right for the condition of the house and our upgrades were easily added to our mortgage and we still had equity when we were done. The point being, if a house is worth $300,000 but needs $50,000 in repairs and it's listed for $250,000, they took into consideration the repairs already and then asking them to go down another $50,000 just isn't reasonable....

The house was a foreclosure, so while value *might* have been there, the credit limit was not. We were are the edge (taboo to some folks, but it is what it is.) This is why we had a $10K cap in repairs as that was our cash limit.

 

[ilovefh]

It sounds like the house has everything you want and is in a great location. I'd be cautious of the mold but it wouldn't make me run immediately. It is possible to have a minor area of mold that is not the expensive, super dangerous black mold that you hear about. We walked away from a house over $5k and I still kind of regret it 8 years later. I can still remember the floor plan and drive by it on the way to dropping off DD sometimes. Like a PP said, over the term of a mortgage, a few thousand does not make a huge increase.

I know this would be the case if we walked. Thankfully we have the cash to cover repairs.

In our area homes are going for a little under assessed value, even though most homes start way over assessed value. It feels like realtors are trying to force the market up with these crazy listings but in the end they end up dropping the price. Take the house down the street from us, assessed at $252k, put on the market for $400k. It has been on the market for 235 days. It is now down to $299k and I suspect it will drop further. The awful thing is they listed at $400k and it is a very nice, 2900 square foot home with a pool. Since they listed that high it made their neighbors down the street list at $270 for a 1700 square foot house with nothing done to it. Both are still on the market and now they're pretty much in the same price range.

That said, the house we want was priced pretty right on since it's assessed at $261k. So even if we pay $258 including the repair of the window it is still decent.

Yesterday our realtor met with the selling agent. The selling agent is reminiscent of an old mean school marm. She gave her our counter ($1500 and leave the dryer) in person. The selling agent got mad and said "you tell them $1000 and no washer/dryer. That's it, they're not getting any more. Don't come back to me with another counter because if you do we'll relist it and we can sell it in a minute."

Well, out of spite I wanted to say no and let them relist it. The truth is the poster above who said people expect HGTV homes is right. Our realtor called it the "IKEA" generation. The house does not show well. They had a ton of showings before us, but no offers.

But I think my husband is right, I'd be mad at myself if we walked over $2,000, especially because we can afford it. So we agreed to $1,000. They will have a check for us at closing.

When we open the wall for the window we'll have them check for any mold. I'll come back and let everyone know what happens.

 

[Disney Doll]

I wish you well and hope it turns out to be your dream home.

 

[JanaDee]

I know this would be the case if we walked. Thankfully we have the cash to cover repairs.

In our area homes are going for a little under assessed value, even though most homes start way over assessed value. It feels like realtors are trying to force the market up with these crazy listings but in the end they end up dropping the price. Take the house down the street from us, assessed at $252k, put on the market for $400k. It has been on the market for 235 days. It is now down to $299k and I suspect it will drop further. The awful thing is they listed at $400k and it is a very nice, 2900 square foot home with a pool. Since they listed that high it made their neighbors down the street list at $270 for a 1700 square foot house with nothing done to it. Both are still on the market and now they're pretty much in the same price range.

That said, the house we want was priced pretty right on since it's assessed at $261k. So even if we pay $258 including the repair of the window it is still decent.

Yesterday our realtor met with the selling agent. The selling agent is reminiscent of an old mean school marm. She gave her our counter ($1500 and leave the dryer) in person. The selling agent got mad and said "you tell them $1000 and no washer/dryer. That's it, they're not getting any more. Don't come back to me with another counter because if you do we'll relist it and we can sell it in a minute."

Well, out of spite I wanted to say no and let them relist it. The truth is the poster above who said people expect HGTV homes is right. Our realtor called it the "IKEA" generation. The house does not show well. They had a ton of showings before us, but no offers.

But I think my husband is right, I'd be mad at myself if we walked over $2,000, especially because we can afford it. So we agreed to $1,000. They will have a check for us at closing.

When we open the wall for the window we'll have them check for any mold. I'll come back and let everyone know what happens.

So you folded to every one of the sellers demands?

 

[deedeetoo]

So you folded to every one of the sellers demands?

It sounds like the OP did the right thing for them. This isn't about winning. Its about buying a house that you want at a price that makes sense for you. Even though the negotiation was stressful, I think in the end this deal just made sense for the OP. After they move in, this will all just fade into the past.

 

[Hillbeans]

This isn't about winning. Its about buying a house that you want at a price that makes sense for you.

Totally agree...this is a quarter of a million dollar home and you are talking about the difference of $500 and a Washer or dryer...it's minor.

 

[Darcy03231]

So you folded to every one of the sellers demands?

Who cares? FWIW so did we. I'm not going to cut off my nose to spite my face.

In our case we think the sellers had sellers remorse and were looking for a way to get out of the contract. We decided not to give them one.

 

[robinb]

So you folded to every one of the sellers demands?

The seller kicked in another $500. I think the OP made the right decision for her family.

 

[Lisa loves Pooh]

So you folded to every one of the sellers demands?

They agreed to terms which is not the same as folding.
They really wanted the house and were not going to get that window paid for. Seller called their "bluff" and said they were fine walking away and relisting. The buyer's desiring the house trumped having that window paid for.


*and by bluff--I mean that the seller stuck to their guns and felt the risk of declining to repair was worth it.


OP--enjoy your house! Don't forget a mold inspection by a mold inspector and not just a regular inspector.

 

[ilovefh]

So you folded to every one of the sellers demands?

Did we fold? Yeah, I guess so. We could have countered again, but for what? $500? While every bit is great, it wasn't worth it. We'd still like to be friends in the end.

Now, as long as the title search comes back clean, we're good!

And we got a great deal on a washer and dryer at Lowes because of their sale. These are bigger and better than the ones they had so it's a win all the way around for us! Actually they are a newer version of the ones we bought for our house in FL and we loved those.

 

[kahpets]

Don't think of it as "folding." Think of it as getting the house you want at a price you can afford.

I hope you enjoy many years in the new house - it sounds like you would have regretted walking away much more than paying the extra $$$ to fix the window.