Backing out of a deal based on bad inspection

[Kevin Hoff]

Hi everyone,

I am under contract with a turnkey SFH. I received the inspection report back and there are some things that definitely concern me. There are foundation issues, minor termite damage, slanted walls and floors, and electrical issues to name a few. After speaking with the inspector on the phone, he offered me a grim outlook on the property and suggested that I do not buy it.

I am thinking about backing out based on this inspection. I have paid $1000 for the EMD. The contingency period for the inspection is technically over because the inspection occurred ten days after going under contract. However, the initial inspection was delayed by the turnkey provider because of construction on the property that made an inspection on the initial date impossible.

For everyone's reference. House cost is 100k. I did reach out to the turnkey company yesterday and listed all of my issues on the inspection report to see what they can do about the issues, haven't heard anything back yet. 

I am a newbie investor so any help is appreciated!

[Andrea Weule]

I agree with @Ibrahim Hughes above.  Make sure you have documentation that you tried to inspect earlier and they held it up.  If you have an email, etc you're in much better shape.  

You have 3 options that I see...

1. Push hard for your earnest money to be returned stating all the items above (inspection issues and the documentation that they delayed the inspection.)

2. Walk away and lose your $1k.  That's a huge bummer, but if it is a money pit sometimes a little loss is better than a huge loss.  

3. Request that they fix all the items that you found in your inspection.  If they can fix all the big ticket items, it could still turn out to be a decent deal.  

They can't say yes, if you don't ask!