Which inspection findings should I ask the seller to pay for?

Which inspection findings should I ask the seller to pay for?

Philadelphia, PA · Member since 2015 · 25 posts · 1 vote

Hi everyone. I just had an offer accepted for $230,000 on a 2,550 sqft triplex in Philadelphia which was built in 1925. The inspection turned up the following issues. Which of these do you think I should push to have the buyer cover?

  • The main water line is lead. Per the inspector, lead in the main water line can leach into the drinking water and cause health problems. The inspector recommended a water quality test as well as replacement of the main water line.
  • Severe corrosion was noted in the house main electric panel and at the lug connections in the main panel. Per the inspector, this creates a potential fire hazard. The inspector recommended that a licensed electrician fully evaluate the electric panel and replace the panel as necessary.
  • The 30A circuit at the main panel is run to 20A wire in the junction box above the panel. Per the inspector, this creates a potential fire hazard. Three hot wires share a common neutral wire in the main panel and in the 3rd floor subpanel. Per the inspector, this also creates a potential fire hazard. The inspector recommended that a licensed electrician fully evaluate the electric panels and wiring throughout the building and correct all overfused circuits as necessary.
  • The ground and neutral wires were connected on the same bus bar in both unit 2 subpanels. Per the inspector, this creates a potential shock hazard. The inspector recommended that a licensed electrician evaluate the subpanels and properly separate the ground and neutral wires.
  • Plumbing issues. When the realtor turned the water on the other day, there were various leaks inside and outside the home. The inspector recommended that a licensed plumber evaluate the water lines throughout the house and eliminate all leaks as necessary.
  • Per the inspector, the steam boiler does not appear to have been properly maintained and may not function properly. A significant amount of debris and corrosion were noted in the sight glass and at the low water cutoff. The inspector recommended that a licensed HVAC contractor fully evaluate and replace the heating system (and any damaged radiators) as necessary.
  • Per the inspector, the electrical system does not appear to be properly grounded. One of the ground wires was run to the water supply line, but the main water line run to the house is lead (which is a very poor conductor of electricity). The other ground wire is loose and not connected to a ground source. This creates a potential hazard in the event of a ground fault. The inspector recommended that a licensed electrician correct the electrical ground in the building.
  • The electric service entrance cable is frayed and deteriorating. Per the inspector, this can allow moisture to enter the SE wire and corrode the meter bases and/or the main panels. It also can create a potential shock hazard. The inspector recommended that a licensed electrician replace the SE cable.
  • Severe corrosion and cracking were noted in the cast iron drain piping in the basement. The inspector recommended that a licensed plumber fully evaluate the DWV piping throughout the house and replace the damaged piping as necessary.
  • Per the inspector, the water heater shows signs of severe corrosion and appears to be at the end of its expected life. The inspector recommended that a licensed plumber fully evaluate the water heater and replace the system as necessary.
  • Aluminum siding was used as a roof covering above a bay window. Per the inspector, this is not a proper roof covering. Wet moisture staining was noted on the ceiling below this roof indicating that this roof is currently leaking. The inspector recommended that a licensed roofer replace the bay window roof, eliminate any active leaks, and remove and replace all moisture-damaged building materials as necessary.
  • The brick is bulging and shows signs of movement above the basement exterior door. Per the inspector, the brick is vulnerable to future movement or damage in this location, and he recommended that a licensed bricklayer repoint and repair the damaged and bulging brick as necessary.
  • Severe corrosion was noted at the steam distribution piping next to the boiler. The piping appears to be damaged and may be leaking. The inspector recommended that a licensed HVAC contractor fully evaluate the distribution piping and replace any damaged piping as necessary.
  • A few windows do not stay up on their own. Per the inspector, this creates a potential safety hazard. One window is cracked. Another dual pane window appears to have a failed thermoseal at the middle window. Fog/condensation was observed in this thermopane window. The inspector recommended that a licensed carpenter fully evaluate and correct or replace the defective windowpanes or windows as necessary.
  • Fire alarm system is required by law for multifamily properties, so we need to ensure that it is functional.

Thank you!

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Investor · Philadelphia, PA · Member since 2015 · 69 posts · 28 votes
10y

In that case push as much as you can. The items the inspector described are pretty serious and potentially costly items. Especially if you are not buying as is you have the right and responsibility to your business to find some kind of resolution. Fire alarm system alone is not cheap. If they can fix everything using qualified licensed electrician/plumber and keep the same sales price I would be satisfied. 

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  • Investor · Philadelphia, PA · Member since 2016 · 34 posts · 4 votes
    10y

    Where in Philly is the propertty located. How close to market value are you getting?

  • Investor · Philadelphia, PA · Member since 2015 · 69 posts · 28 votes
    10y

    Agree with @Crystal Dundas if you are getting top dollar you may need to make some concessions. Especially if the buyer is getting an FHA loan some of these items may be required if the appraiser comes out and notices them too but I don't think an appraiser will be nearly as detail focused as this inspector.

    Are you selling the property "As Is"?

  • Philadelphia, PA · Member since 2015 · 25 posts · 1 vote
    10y
    Crystal Dundas Igor Avratiner Doh... Sorry - I am buying the house, not selling. What I meant to ask is which of these I should push to have the seller do. Also, this is in Mt. Airy.
  • Philadelphia, PA · Member since 2015 · 25 posts · 1 vote
    10y
    Igor Avratiner I am not buying the property as-is.
  • Investor · Philadelphia, PA · Member since 2015 · 69 posts · 28 votes
    10y

    In that case push as much as you can. The items the inspector described are pretty serious and potentially costly items. Especially if you are not buying as is you have the right and responsibility to your business to find some kind of resolution. Fire alarm system alone is not cheap. If they can fix everything using qualified licensed electrician/plumber and keep the same sales price I would be satisfied. 

  • Developer · Philadelphia, PA · Member since 2013 · 1k+ posts · 902 votes
    10y
    Originally posted by @Igor Avratiner:

    In that case push as much as you can. The items the inspector described are pretty serious and potentially costly items. Especially if you are not buying as is you have the right and responsibility to your business to find some kind of resolution. Fire alarm system alone is not cheap. If they can fix everything using qualified licensed electrician/plumber and keep the same sales price I would be satisfied. 

  • Real Estate Broker · Chicago, IL · Member since 2015 · 531 posts · 266 votes
    10y

    It all depends on what the purchase price is. If comps are $280k and you are paying $230k, then it sounds like the property was priced right to begin with. 

    I would ask for anything that is a health and safety issue to be remedied by the seller. Anything electrical, they should absolutely correct and assume the cost. 

    The heating system, if it is working right now then that is all you need to know. You could ask them to have it serviced, but you cannot ask them to replace something that is operating just fine even if it is close to its "useful life". I once sold a house and the heating system was more than 30 years old. It had been meticulously maintained by people who owned an HVAC company.   

    Remember that if your inspector creates enough fear in you on this property, you might cancel the sale and hire him again when you go under contract on another property. Now he has been paid twice. I'm not saying all inspectors operate that way, but a good inspector will point out legitimate safety and big ticket items, but also let you know as a property owner what you need to be aware of going forward. A bad inspector creates a lot uncertainty, which leads to fear and the buyer coming to the conclusion of worst case scenario.  

    What does your broker say? 

  • Escrow Officer · Denver, CO · Member since 2016 · 64 posts · 27 votes
    10y

    I say ask for as much as possible, they may want to negotiate so don't ask for too little.  I am not a home repair expert, but these items could cost you tens of thousands of dollars to repair.  Not to mention, sounds like there could be some foundation issues-  I would be SUPER careful with that.  Same thing with the main water and sewer lines-  those are very costly repairs.  GET A SEWER SCOPE, paying $100 for that could save you from incurring over 10K to re-do a sewer line.  ALSO another thing to keep in mind:  this is only what the inspector can see on the surface-  when you have a ton of items like that that are visible just consider the things that he could not uncover with his inspection.  I think what we are all wanting to know is what is the market value, and how much have you budgeted for your repairs?  Are you house hacking or?...

  • Residential Real Estate Broker · Ft. Lauderdale, FL · Member since 2016 · 45 posts · 8 votes
    10y

    oh yeah let us know how this gets finalized please @Kevin R.

  • Rental Property Investor · St. Louis, MO · Member since 2014 · 741 posts · 424 votes
    10y

    @Kevin R. All but the windows being stuck open (inspection reports always find a few of these.)  The other stuff is costly.  Now that there is a report, the owner knows that any potential buyer will find these issues, whether he shares your report or it under goes another inspection.  Work with the seller. Put dollar amounts next to the costly issues and adjust your counter-offer accordingly. The tenant improvements must be made to attract solid tenants. In St. Louis, some of the repairs must be made to get the occupancy permit.  In the end, if you don't get help from the seller to adjust the price, you will have to reach in your pocket and pay for them yourself.  Your contribution to the deal must not exceed the market value.

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