Make seller replace furnace?

[Craig Montesano]

Hi everyone.

Need some advice.

I plan on putting an offer in on a 3/1 duplex. One of the units has a brand new furnace and the other unit has a furnace that looks straight out of Sanford and Son. Not sure if it even works because all of the utilities are off. Once we move forward, and utilities are turned on for inspection, and indeed the furnace doesnt work....do I make seller replace it or do I come down on my asking $. Id rather have him do it...

Any ideas from anyone?

Thanks all!

[Mark Updegraff]

I've been an investor for 6 years, and an agent for 1. Helping new investors as a Realtor is a tough challenge! You need to trust your professional, but ultimately go with your gut. You will make mistakes, but you will learn.

Your negotiating power in a deal is going to depend on market conditions and the quality of your offer. Only you will be able to know the true dynamics unless you give us more details to help you.

First off, is this even a good deal? Show us your pro forma if you have one. How is it priced compared to what you're planning to offer? Are you offering within 5% of list price?

Is this a hot market? How many days on the market?

The listing agent priced this knowing what you know. I would ask if it works, if they say "I don't know" reduce your initial offer.

You're going to negotiate this before your inspection. Negotiation after an inspection is more common with owner occupants than with seasoned investors. Trying to negotiate heavily after an inspection is tough unless it was something that the seller was unaware of. If your agent is good, the seller is already PAST their bottom before you go into the inspection.You're definitely not going to make the seller smile when your agent comes back again. Stuff like, "Fix the leaky faucet" and "Fix cracked window" makes me cringe as an agent and an investor. When you get into real MEATY deals, the "inspection" mentality is out the window all together, and that's where I like to be!