Cast Iron Plumbing On Flip Property

[Tim Silvers]

I am a week away from COE.

Buyer's sewer inspection report came up with the following:

"CAST IRON PRESENT: The age of the plumbing system should be taken into consideration. Cast Iron drain and waste lines typically have a 50 - 60 year life. Internal corrosion in the lines can and will affect the pressure and draining capabilities of the plumbing system at some point in the future. Major repairs and/or replacement should be anticipated - this could be in 20 years or 6 months, remaining life is indeterminable. You should consult with a qualified contractor to discuss options and costs for proper repairs.
Recommendation: Contact a qualified professional. Drain System: POSSIBLE DAMAGED LINE. There is one or more sections of possibly damaged/cracked drain line found under the home as viewed from the clean out at the front of the home. We recommend the repair of all damaged lines. It is HIGHLY recommended that a licensed plumber review review the findings and recommend any repairs necessary prior to the end of your due diligence period."

This was a major rehab ($160K) and I've already discounted the price $40K from ask.

After discussing with my contractor, since there is nothing backed up or leaking and the toilets and sinks are draining properly, there is nothing to repair or replace at this time. We did, however, replace some of the pipes with ABS. Furthermore, the report does not indicate any clogging. There are also separate plumbing inspection plans available. The buyer needs to understand that all older homes come with cast iron pipes and will all show aging over time, but as long as there are no issues with draining, it is not something we repair.

To address potential future problems, wouldn't a homeowner's policy and/or home protection plan cover any occurrences?

[Billy Daniel]

Cancel the deal and put it back on the market offering a credit for sewage line replacement.  If your current deal is $45k below asking, then it would be great to get a deal that's $20k under asking while also offering a $10k credit, right? 48 DOM is pretty good.  This solution also addresses your disclosure dilemma.