Seller Knowingly Didn't Disclose Flood - What should I Ask For?

[Richard Duane McClellan]

Hi Everyone,

I purchased a condo in Arlington, TX in late February.  The SDN stated there was no prior flood, flood damage, or flooding at all on the property, and my inspection did not find any of these details either.

Had the seller accurately represented the property, I believe the listing price would have been lower, and subsequently market place offers would have been lower.  My question is:  Is there a rule of thumb for value differences when a property has had some sort of material damage relative to like properties that did not have said damage?  Would it be 15%? 30%? 5%?  I want to make a demand for this difference.

Details:

Fast forward to my renovations starting in March 2022 after close -- I am seeing a lot of water damage as I being work.  Mold, rotten MDF, crappy repairs to get the cabinets to "look" ok, all of it behind cabinets, appliances, and generally all covered up with the thin cabinet siding you can buy at HD or Lowes.

It was apparent to me that there had been some sort of significant water event, but I could not prove the seller was aware; however, a few days later, I was chatting with a neighbor, and she asked if I was aware of the flood that had occurred in the property.  She mentioned the local housing authority had inspected the property while a prior section 8 tenant was in place, and had cited it as deficient and thus disqualified it for section 8.

I called the housing authority, and they provided a copy of an inspection report from May 2021 confirming the neighbors comments.  It's well documented and lists a variety of places where water was intruding in the home.  I also managed to get in touch with the prior tenant who corroborated the above details and the also provided 30+ pictures of the home with water intrusion and sandbags on the exterior in a few places.

Status Today:

I sent the seller a demand letter that I wrote.  In it, I asked for ~$6,000 to cover the cabinets, drywall, some mold remediation, countertops, paint, and a few other things.  

I also asked for all information regarding what they knew of the water intrusion (how was it getting in the house when it rains, did they have any professional inspections identifying solutions, where solutions taken, what repairs were made). I felt this was a fairly generous offer after presenting them with the evidence above.  

They ignored the letter and made no response.  It was sent to them by their RE agent, and so I know they received it because they confirmed it with him.

I have since hired a lawyer.  The lawyer is sending a second demand letter on Friday.  It will include:

• the above $6,000, 

•a request for the same information regarding what they know and what steps they took to fix, 

•the lawyer's fees

•And some amount for what I believe is over paying for the property.

What does the community think?  Any other steps that I should be taking to remedy my problem?  Should I be asking for an amount to cover market value in addition to my actual repair amount?

Thanks!