Recently I worked with an investor who was looking for a property to purchase and rent out. We spent a few months previewing homes looking for one that was just right for his needs. We ended up finding a nice single family home in Bellevue that was priced well but needed some work done. My buyer didn't mind doing some repairs but didn't want to fall into a money pit.
So we looked around and were noting various items that would need fixed or replaced. A few of them were the roof, furnace, porch gutters, two windows, and electrical panel. Since we were aware of this, we put in what we thought was a fair offer knowing that a lot of work would need to be done before renting it out.
After a few counter offers, we were able to get the agree on a price. At this time, we set up the home inspection. I knew that the home inspector would easily find the issues we found, but we were relying on him to find things we couldn't see. Sure enough, the inspection report came back and aside from a few small items, the report basically said what we thought it would. I thought, great. We can now move forward to closing.
But then it happened. My buyer (who made an offer price with the repairs in mind) decided that he wanted the seller to fix all of the major items in the inspection report. The estimates for the repairs were in the thousands (which we figured going in) and needless to say, the deal fell through and we're currently looking for another property.
I told this story to make home buyers aware that if you find a home that has some repair issues and you make a low offer to cover the costs of them, there's a good chance a seller won't go back and repair the items if they show up on the home inspection report. However, if an inspector finds things that you didn't see or aren't aware of, then those items can be negotiated with the seller after the initial offer was made.
For more information about home buying a home, visit www.NewlywedHomebuyer.com
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