Multi-Family Bad Roof

[Peter Green]

In Contract to purchase a Multi-Family Property at just under a million in CA.

Just had the roof of building and parking structure inspected, $104,000 replacement cost. Condition of building roof is worn and poor. One of the parking structures is very dilapidated, other is ok.

Same realtor is agent for both buyer (me) and seller. Could be conflict of interest.

Am currently in Escrow, however have not signed off any Inspection contingencies.

Don't want to have a problem with my loan appraisal.

QUESTION :-

Should I (a) Ask for a $104,000 Price Reduction (b) ask for the seller to fix it (c) Offer to split cost 50/50 (d) Break Contract

p.s. I am v. interested in buying this building, because it cash flows well, however $104,000 is too much CASH !!

Can I break Contract for free ?

What to do ?

Thx

[Omar Ruiz]

Yes, absolutely ask for a price reduction or what I would do is request a repair credit for the roof to be put in a seprate escrow account, so that you get the cash to affect the repair and the lender doesn't reduce the amount of the loan. If you really reallly realllly want it, I guess you could offer to pay half, but it sounds like your starting to get emotional about a deal and that can be bad. I don't know any numbers so maybe it still works. As far as breaking the contract, it depends if you have a refundable security deposit.

Good luck