Now (post-sale) plumber is asking for much higher than we agreed

Now (post-sale) plumber is asking for much higher than we agreed

Rental Property Investor · Toronto · Member since 2018 · 37 posts · 13 votes

Hi all,

I'm very new to real estate investing - just joined BP in June and closed on my first rental property yesterday. It's a great SFH in an A area (Olathe, KS), inspection report came back very clean, everything looked great. I was very excited.

The only problem that we found was that during the sewer inspection, the guy said he ran into some problem with the main line where the camera got stuck but he didn't know exactly what the issue is. He gave me a bid for $3000 to fix it. This seemed very steep for me, almost made me not buy the house, but I decided that if everything else is great and I just have to spend this $3000,  then sure. The quote he gave me in writing did say this was an estimate, but to me $3000 seemed like a large sum of money and I wasn't going to be comfortable if that was not the maximum cost. So I called him up and asked him very explicitly if this $3000 quote is just an estimate or if that's the final cost. He said very clearly that he does not know the exact issue because he could not see it, but this $3000 will be the final cost to get in there and fix whatever he sees. As a lay person who knows nothing about plumbing, that sounded reasonable; he did an inspection, saw he had an issue, and said he would fix whatever issue it was for X amount. He said multiple times that this is the price and it will not go up.

Using this information, knowing I'll have to pay $3000 and have a rental-ready unit before October, I decided to go ahead with the purchase.

Fast forward to today, his boss (the company owner) shows up, and says that after cleaning the sewer line a bit, he's able to see there's a lot more problems than what they previously thought. It's going to be a much larger and more expensive job, maybe 2 or 3 or 4 times the original cost.

I strongly believe that he should honour the price his employee told me. I do have a recording of the phone call we had, so I have proof of him saying $3000 was the final price. The owner's claim is that his employee could not promise me that price because he did not know what the problem was at the time. I do understand where he's coming from, but that's on them, not me (or so I see it). I think the problem stems from his employee overpromising something he could not deliver. I went ahead with the purchase of the home largely because he told me $3000 would be the amount I would pay to fix the plumbing issues, otherwise I would not have bought it. Now I have the house and he's telling me it's going to cost a lot more. I don't think there was any malicious intent here, but it seems reasonable to me that it should be up to him to honour what he said rather than me paying for his mistake.

I want to resolve this ASAP because I want the house to be ready for October because otherwise I will lose October rent, and also the rental market will cool down and will be harder to find a tenant at the price I want. So I'm a bit pressed for time.

To be honest, I would be ok with a compromise too, such as a discount on the required work, but the guy has been very hostile and angry and yelling at me and not showing any remorse or understanding my perspective. I don't want him to do any work for me because of how disrespectful and unprofessional he is. I'm sure other plumbers will also tell me it's a big costly problem (I'm getting bids tomorrow), so my problem is not specifically with him giving me a high quote, it's the fact that I have a house with a lot more repairs on my hands than what I was led to believe and I think the plumber who did the inspection and overpromised should have to pay for his time, not me.

Does anyone have any advice on what course of action I should take? Perhaps I'm being unreasonable and I'm the one who's in the wrong here, I'd appreciate any feedback or similar experiences.

Everyone keeps saying that the first investments usually end up being bad investments and you learn from mistakes, so I suppose this was bound to happen because a smooth sailing first buy is just too good to be true :)

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  • Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
    8y

    These things happen. All you can do now is get more quotes. But I have to ask, for such an expensive repair, that from the sounds of it your decision whether or not to even buy the house hinged on, did you not think to get more than one quote/opinion BEFORE you bought the house?

  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    8y

    This happens, when they can’t identify the exact problem/cure. So, what Does he say the problem is now, and what is the fix? I’m guessing it’s digging up and replacing the sewer pipe.  You’ll li,rly have to pay new plumbers to run a camera and make their own determination.

  • Rental Property Investor · Toronto · Member since 2018 · 37 posts · 13 votes
    8y

    @Kyle J. I told myself ahead of time that whatever the inspection report comes back with, I had up to 5k in total to spend on the house. If it as more than 5k, I wouldn't buy. The small repairs and reflooring are about $1500 so with this $3000 I was at the max of what I was comfortable with. I figured 3k is not little, but it's not a huge amount, it's ok if that's the final price (which is why I tried making sure it *is* the final price!).

    Lesson learned, do get multiple bids for *everything*. But it doesn't help me for my current situation.

  • Rental Property Investor · Toronto · Member since 2018 · 37 posts · 13 votes
    8y

    @Wayne Brooks I did not understand the technical details of what he says the problem is, so I won't try to say things that are probably wrong :) He said there's a hole in the line, but that he still isn't able to see everything and it could still be much worse.

    I completely understand that this can happen. But my point is that his employee (the inspector) should not have guaranteed to me that he can fix it for some specific amount, it feels almost like a bait n switch because now I have the house and have to pay the full amount. I don't know what I could have done differently - I asked explicitly if that's the final cost no matter what he finds and he did say yes, I have proof of that, it's a bit worrysome that I cannot rely on what a professional tells me.

  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    8y

    @Dean Attali Yes, I understand. I know nothing about sewer line materials, depths, causes of problems in KS.....you’re about to learn more about this than you ever wanted to know.

  • Real Estate Agent · Overland Park, KS · Member since 2012 · 17 posts · 1 vote
    8y

    Congrats on your first rental @Dean Attali!  Welcome to the club!

    $3000 sounds like a spot repair. If you need multiple spot repairs, you might want to check the cost for a trenchless replacement of the entire sewer line.

    Another couple things I'd recommend for the future:

    1. Hire an independent company to inspect the sewer...one that's not bidding the repair work.

    2. If the sewer line is blocked...ask the seller to have the line cleaned and allow you to re-inspect. This isn't always possible depending on the seller (REO, HUD, etc).

  • Real Estate Professional · Hoboken, NJ · Member since 2017 · 46 posts · 26 votes
    8y
    Time to start asking questions. Get details on what the plumber thinks is the issue, remedy, and cost. Then get another quote for peace of mind and let the original plumber know you’re doing so . At $9k plus sounds major and like running a new sewer line. To be fair to the plumber, surprises do come up. This is why it’s important to have someone you trust. Get another opinion and do t play hardball with them, bc if you force them into this and they don’t make money you’re going to get a patch job, and since you don’t know anything about plumbing I wouldn’t recommend going that route.
  • Real Estate Appraiser · Isabella lake, CA · Member since 2018 · 628 posts · 491 votes
    8y

    How long is this sewer line? So they dig a trench, and the abs pipe is not that expensive.

    It's mostly labor. Get more bids on the job.

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