1st time home buyer feeling very discouraged....need advice...

[DisneyDame]

I'm so glad I posted here....you guys have really helped me put things in perspective.

I didn't get much sleep last night, knowing I have to make this decision today. I'll be calling my agent this afternoon to let her know this isn't going to work.

Being the worry wart that I am, I don't think I could be at peace if we were to go through with this deal. Not to mention we were going to pay the asking price as it was, before we learned of the problems.

This should be a joyous occasion, not the source of migraine headaches.

I'm also going to find another real estate agent since I believe she's been doing us more harm than good.

The one good thing that's come out of this is that I'm definitely more educated on the whole process now.

Thanks again!

________________
DisneyDame

 

[Tiffany]

Originally posted by DisneyDame
My DH and I put a deposit on a house 2 weeks ago after searching for close to a year. The inspection was a few days ago and turned up a couple of problem areas but the seller is not willing to fix either of these.

We found evidence of temites. The inspector popped his screwdriver-like stick right through a board in the basement. We also saw a small tube-like mound (not a long/lengthy tube like the pictures I checked out online, but definitely a mound of some sort)
The seller disclosed that the home was treated for termites 4 years ago when he had purchased it and that while he is willing to replace the board, he is not willing to pay for any further treatment.

The other issue was the electrical work, which the inspector recommended having a licensed electrician inspect the home as there appeared to be some sloppy wiring in the basement.

This stuff is all very new to me so I'm a bit scared here. Not sure what to do from this point. Isn't it the Sellers responsibility to make sure the home is up to code?
Should I be responsible for paying the cost of an electrician and termite co. ?

Any advice would be greatly appreciated! I'm feeling so overwhelmed right now that as much as I love the house I'm ready to give up and back out while I still can.

_______________
DisneyDame

I would not buy this house with these issues. Termites are a huge issue and so is bad electrical.

 

[CarolA]

On wiring. There can be two things

If the house is old the standards were not the same and they do NOT have to retrofit. For example GFI plugs were not required in older homes, you may not have them unless they have remodeled and I would expect asking for them is probably not going to fly. My boyfriend is buying a house and this was disclsoed.

However, if they have done some "home wiring" then all bets are off!

As to termites. I had termites when I sold my last house and that had to be fixed. That was not even part of the inspection, but in TN the law required I have it inspected and fixed prior to sellling.

 

[HollyJoy]

Don't buy the house unless they fix the problems!

 

[poohtown]

since I think you won't buy this house, I'm going to offer you some insight:

when we were first looking, I feel in love with a house right away and really wanted it but it had some problems. I was so excited, but my husband wasn't. Luckily, he convinced me to wait because now 10 years later that house looks like......... Our house now has a beautiful yard with lots of trees and has held up in good condition. The other house, which had a lot of neigboring trees at the time has had construction all around it and only has one tree left out on the side. The roof also looks like it's about to cave in.

don't think you won't find another house you'll love just as much - be happy from the very start!

 

[Snowysmom]

I would look for another house. If he isn't willing to treat for termites that he also treated 4 years ago, the problem may be major now and he may know that. The bad wiring is a big issue too. It is hard when you really love a house but you will find another house that you love and it will be a better purchase.

 

[kadaten]

Originally posted by battricia
Did the inspector pass the house w/ those problems? I was under the impression that a mortgage company won't authorize the mortgage if problems with the house exist enough to make the house fail an inspection. I could be wrong though.

If it was me, I'd pass on the house, like others have said, termite problems are NOT worth the trouble.

tricia.

Houses don't "pass" inspection. You can buy whatever you're willing to buy. They do have to appraise for the amount the lender is willing to lend you, though.

Inspections are for you information as a buyer. If there are defects found, then it is up for negotiation between the seller and buyer. Depending on how the clause is worded, the buyer may be able to walk away from the purchase without penalty if buyer and seller cannot agree on remedies. Some clauses, however, state the inspection is for information only, and may not be used as a reason to back out of the deal.

As for the OP question :

This stuff is all very new to me so I'm a bit scared here. Not sure what to do from this point. Isn't it the Sellers responsibility to make sure the home is up to code?
Should I be responsible for paying the cost of an electrician and termite co. ?

Depends on your state. Here in VA, no, the seller is not responsible for anything if they sell it "AS IS". Most sellers disclose what they know, but by selling AS IS, they aren't required to tell you anything, and can't be held liable for anything! It's up to the buyer to decide if the house is in good condition and this is why you hired an inspector. If the house is being sold AS IS, that generally also means the seller will not accept financial responsibility for the remedies.

Now that defects are found, if he won't pay for the remedies, he may be willing to negotiate further on the price. It happens all the time. Also, home buyer warranties are available on existing homes in many states. It is purchased separately, and may be paid for by the buyer or seller. Your real estate agent should be able to help you. BUT, I don't know if they cover termites.

In our state (VA) a separate termite inspection is required so most people keep up the termite service which comes with a "termite letter" which is like an insurance policy if you ever have damage. If you've kept up with the yearly service, the company will treat all outbreaks and pay for any damage.

HOWEVER, I personally would not buy a house with known termite and electrical problems. Those can be BIG $$$! We have a hard enough time paying for routine maintenance items (cleaning gutters, exterior painting, twice yearly heat and AC service, home buyers warranty premiums, small leaks, yard maintenance, replace bad faucet, etc....) and normal wear and tear without having a HUGE problem like termites and faulty wiring!

 

[hrh_disney_queen]

If you are trying to get a mortgage, the bank will require that all of these things are taken care of, and that you have a clear termite letter and proof of treatment/contract. Most sellers, if they really want to sell, will take care of this kind of thing, offer money as part of the sale for YOU to take care of it, or lower their asking price. The only problem with the last 2 options is that you will have to fix the problems before your bank will give you your loan. Therefore, you are fronting money on a deal that isn't done yet...

I personally would walk away from this deal. Something just doesn't sound right if the seller is presented with an obvious problem and is still unwilling to correct it. As far as being bound legally to this sale agreement, most sales contracts are contingent on financing. So...if he doesn't fix the termite problem, you are unable to get financing. I guess it could vary from state to state, but I would think that most follow FannieMae guidelines, and from my mortgage banking memories (6 years ago), this would be the case.

Good luck...don't worry, you will find a house that you love that DOESN'T have BUGS in it...