I am on contract with my first property and just got the inspection report back. This will be my first investment property and I am not sure how to handle all of the suggestions from the inspector. Want to hear from you as how you would handle the following items (not a comprehensive list) and negotiate with the seller. What should I be worried about and what not, and whether I should proceed further with the deal or back out?
SFH Prop Description: Single Family Home (Charlotte area) - 16+yrs old. Offer made, within 2-3 days of listing, with 8K over the asking price (50% cash and 50% conventional loan) with 10K earnest deposit, just to beat the competition. Being a novice, in the early stages of investing, I understand that inspections will show every small, medium and big items to grab my attention but how concerned should I be with these:
1. Exterior Wall Claddings - noticed several areas that are either damaged or not properly sealed. This would allow water to penetrate the building and potentially damage the structure.
2. Doors (exterior) - staining was noted on the trim at the sliding glass doors n windows. Areas had acceptable moisture acceptance levels at the time of inspection; recommend a qualified contractor for further evaluation
3. Garage Door - would not open/close during inspection; A garage door repair company to be consulted for repair/replacement
4. Ceilings/Walls/Floors - several small cracks were noted on the ceilings, walls and on the ground. There are multiple reasons that can cause cracking's. Recommend a qualified contractor be consulted for further evaluation and make necessary repairs
5. Wood Floor Cracks - separations were noted in the flooring materials downstairs in the family room. There are multiple reasons that an cause separations in flooring material. Further, discolored and loose flooring were noted in the bathrooms. This can allow the flooring for become further damaged. Recommend a qualified contractors to be consulted for further evaluations and repairs.
6. Kitchen Ceiling - water staining was noted on the ceiling in the kitchen. Staining was dry during inspection; a qualified contractor be consulted for further evaluation and verify the source of the leak, make sure its no longer active and, if it is, make necessary repairs.
7. Plumbing - Corrosion and/or oxidation was noted on one of the PEX crimps under the kitchen sink.Over time, this can increase the change of leaks. Plumber should be consulted to further evaluate and repair
8. Gas lines - gas line piping for the furnace has the sediment trap turned in the wrong direction. A sediment traps shall provide a 90-degree change of direction in gas flow, to help prevent sediment from flowing over the trap. A qualified technician should be consulted for further evaluation and repair.
9 Gas piping- includes corrugated stainless steal tubing (CSST). However, it is missing an electrical bonding connection between the gas piping and electrical systems. lack of electrical bonding may increase the potential for lightning strikes to cause arcing at the CSST gas piping and may result in perforation of the piping, gas leaks and fires. For safety, it is recommended that this installation be further investigated by a licensed electrical contractor.
10. HVAC - noted several HVAC registers in the home were not releasing air consistently, different room reads different temps. Also noted the decrease in the efficiency of the HVAC unit and causing it to work harder. A qualified HVAC contractor should be consulted for further evaluation and repair.
These are only some of the items from the 63-page inspection report. In addition, the roof, water heater, HVAC system, appliances were evaluated as aged. I understand that the typical lifespan of these are anywhere between 10-15 years. How should I approach the seller negotiating these so we handle these amicably and reasonably. Any advice would be much appreciated!
I don't want to miss out on my first deal, but also don't want to be in a deal that is a money pit waiting to happen.
