Inspection Objection Deadline- New Boiler & Sewer Scope Help!

[Zachary R.]

Hi Everyone,

Thanks so much for your input in advance, as I'm a bit over my skis on a property that is currently under contract. Let me first provide a little context on where we are at with the deal and the overall condition of the property.

My intention: Primary residence- 2 yrs, then rental

Location: Denver, CO (Very high growth neighborhood, this deal was almost all dumb luck...)

Condition: House is B Class, recently remodeled, 3br, 2ba, huge yard, carport, shed, new roof, everything about this house is above and beyond what I consider move in ready.

Asking price:  $399,000

Days on Market: 27

My Offer: $375,00 (Accepted)

Contingencies: Inspection, Appraisal and Seller allowed to live in the property for 9 months after closing while new build is being completed.

The seller is in a position where they need capital to finance and complete the build that has already broken ground on their new home. This is why the sudden drop in price (we were looking at the property for the first time and the sellers agent called and said we are dropping on the MLS tonight. I made the offer immediately.)

I am in the inspection objection period right now and got the inspection & sewer scope reports back last night.  Long standing relationship with both companies that completed them and the company that did the sewer scope called right after to go through the findings 1x1.  Net result, there are two cracks that will cause problems 5-8 years from now and will be a significant cost to fix.

The inspection report shows that the boiler is end of life, needs replacement.  

Problem: I have ZERO idea how much these costs, or where I am in terms of position for negotiations.  Nor, do I know anything about boiler systems. I am from Texas where we all had HVAC systems until I moved to CO. 

I don't want the deal to fall through, but I'm also not going to take on these huge costs and we're providing the seller the opportunity to finance their build (while letting them live in the home that I planned to use as my primary residence.)

Any advice on what we should push back with? I feel extremely confident that we are getting the house at $20K under market price because there is a ton of fluctuation right now ( I just bought a separate SFH in Arvada 3 months ago and have been watching diligently daily, if not hourly!)

Help!?  Inspection deadline is tomorrow.

Thanks again everyone :)

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For Context, boiler details:

Approximate capacity: 105,000 BTU/hrEfficiency: ConventionalExhaust venting method: Natural draftApproximate age: 38 years 39 years 40 years 41 years Near end of life expectancy Typical life expectancy: Boiler (cast iron) 25 to 50 years

Main fuel shut off at:  Meter

Failure probability: Medium 

Supply temperature: 180°F 

The following issues were noted at the time of the inspection:

1. Water could be heard moving through the heating pipes as well, which is symptomatic of air in the system and a possible failure of devices on the boiler meant to purge air,

2. The flame pattern on the burners had a significant amount of orange flame, indicating the burners could need to be cleaned or may not be properly combusting, and

3. The boiler took a longer than expected period to reach a full operating temperature of 180°F.

Recommend the boiler be serviced and certified by a qualified boiler specialist prior to the end of the contingency period. Implication(s): Equipment failure | No heat for building