All Forum Posts by: William C.

UPDATE: Buyers agent finally relayed what the buyer is asking for. They what full reimbursement for the new quote they provided, which was roughly $12k, which included replacing a perfectly running unit, to install, a smaller, yes smaller unit. Along with that was $7k in other expenses to add more return vents, replace ducting, etc, etc. Buyers agent realized they dropped they ball by not doing a home inspection prior to settlement. Buyers agent also confirmed the heater is running just fine, and they just cannot seem to get the downstairs warm enough, while the upstairs it too warm. The EXACT problem my contractor said was the issue. So I presented this situation the buyers agent....The Buyer would like to replace the current unit, for a smaller one, but the issue is they can’t get the home warm enough. If we had installed the smaller unit, who’s to say we would not be in this same situation with the new HVAC contractor insisting the Home needs a LARGER unit to heat or properly.

Whoever suggested the damper hit the nail on the head. They need to close all the vents to all the upstairs room, so that all the heat it forced to the downstairs, then heat will rise, and warm the upper rooms. This is simply a buyer looking to get whatever they can out of the seller because they are not 100% happy with the way the Home is heated.

@Bryan Zuetel you act like we tried to pull one over on them. If they had an issue with the size, they had that info prior to settlement. And I’ll repeat myself for the 3rd time. They claim the unit needs to be smaller, not larger. You would think an older home with less insulation would probably be better off with a slightly oversized unit as opposed to a slightly undersized unit, correct?

Lastly, the buyer has to prove the seller “knew” of a defect, and failed to notify the buyer. I didn’t know them, and I still don’t know now that the unit is oversized, I’m looking at the manual J with the township stamp on it, why or how would I think that to be wrong?

@Bryan Zuetel your joking, right? Or did you not read the thread?

Myself, the experiences flipper, hired an experienced HVAC tech to handle the entire process. He, the professional, completed an Manual J, which is a calculation that shows what unit size is needed. The township, approved the manual J, because it’s the correct size. So the hvac contractor installed the unit as per the approved township plans. Once it was installed, the township inspected to make sure we installed the correct size unit as per the Manual j.

So it’s not that I don’t like your argument. It’s just completely false.

@Christian Scully the LTV you are going to find on an Owner Occupied cash out refi is going to be between 75-85% depending on who you call and a host of other factors. The key being the "cash out" part of the refi. Living there helps raise the LTV, but pulling cash lowers it. Now if you don't pull any cash, and just pay off the debts, you may be able to see a higher LTV. At least that's been my experience, any mortgage guys out there feel free to correct me if I'm wrong.

The way I'm reading the numbers tells me you have $260k into the property, total. If we assume a typical 80% LTV loan, with a value of 325k, that is 260k, the exact amount needed to pay the current loan, and renovation debt. I don't see enough equity in the home to pull out cash above that 260k.

Are you robbing peter to pay Paul by taking a higher interest rate in order to drop PMI? These lenders should each be experienced and educated enough to be able to sit you down and compare their loan against the other loans apples to apples and show you which one is going to best accomplish your goals. Most consumers will get lost in the numbers, it's their job, and why we pay them so much money, to educate you. Bigger Pockets is great and all, but when it comes to finances and loans there are COUNTLESS variables that are specific to YOUR situation that affect the loan type, interest rate, PMI, etc, etc, that only the lender knows and why you may find 100 different opinions on this thread by the end of the day.

@Jon Lanclos you are right about putting work orders in the new buyers name, so that the seller isn’t involved past that point. Unfortunately this wasn’t a work order, we installed a new HVAC while renovating, so we had no idea who the buyer would be at that point.

@Emy Bernardo well then you are right, that stat is 99% incorrect. Iv been apart of over 100 deals and roughly 1% of them had a buyer ask a seller for repairs that they refused. In every other case the seller was willing to make repairs the buyer requested. Every situation is different, so to throw a blanket statement out that buyers don’t make repairs is just flat out false and not helping anyone in this thread. The fact that these “repairs” were promised before any type of inspections or even requests just sounds out of the norm, hit again, not entirely impossible.

@Emy Bernardo I don’t know where you saw negative comments regarding the seller making repairs, but I certainly had to clarify if that’s what was actually happening. You are right when you say sellers will make repairs prior to settlement all the time. I have just never seen a situation like this. Typically they make repairs that were asked for due to a home inspection. It looks like this seller advertised “remodeling” the unit before closing. I would just want more clarity on what exactly this means. If they mean turning the unit over to make it rent ready, ok that makes perfect sense. But for a seller to just offer to remodel units prior to settlement seems like a red flag to me, or at least something to get absolute clarity on. It’s likely they are not putting much, of any money into it, other than maybe some labor to clean and repaint wherever needed. But if they were planning on spending, I’d negotiate to get a credit instead. Then you can control the remodel. Who knows who is doing the work and what kind of work they are doing. For example I’m dealing with frozen pipes from when a shoddy contractor never insulated water lines years ago running up an exterior wall. Remember your stuck with any and all issues moving forward, so you really want to make sure you know exactly what is being done to the property.

@Jim Cummings while I understand your point, and it might seem like a “warranty” would solve this problem, unfortunately I’d still be dealing with it. I’m all too familiar with how Home warranty companies work, and what needs to be done to make a claim. And what the buyers are insisting needs to be done, would not be covered by a warranty. They claim the unit is too large for the home, and want to replace it with a smaller unit.

@Russell Gronsky I understand your point, but quite frankly that’s already been signed by the Buyer. The agreement of sale Cleary states the Buyer cannot hold anyone else liable, seller agent or anyone, for issues that arise with the home. It’s a release. Basically saying this purchase is on you, don’t sign if you are not sure you want it, nor can you come back and try to hold anyone else liable. But it’s seems as though it doesn’t matter what contracts say anymore, buyers can try to sue anyway.

@Don Gouge all homes are sold “as-is”. Providing a home warranty does not change that fact, it just means someone has paid $500 for a 1 year home warranty to a third party. It does not reduce, limit, or eliminate liability of the seller. It gives the buyer somewhere else to turn of they have an issue. People confuse cars with homes. Yea, a car sold as-is drives off the lot and never looks back. A car with a warranty can be brought back with issues. Homes are different. Yes we completed a sellers property disclosure, and yes the buyers signed it. The issue wasn’t when the home was purchased, the issue arose now, 9 months later.

@David Waddleton. Am I reading this post of yours correctly? I can’t see to quote from my phone but I pasted part of it below. The unit is being renovated prior to settlement? As in the current owner is going to invest into the property, after it’s under contract and before he transfers ownership? Sign me up! Another question I have after reading through this thread is, who is your boots on the ground? An agent? Sounded a few times like the property manager is selling you on higher rents and renting it out quickly. Wasn’t sure who’s all involved since your out of town. Have you seen the inside yet? Your OP and your location tell me you bought sight unseen. As others have said, bravo for jumping into the deep end, and coming here to get some helpful advice, it’s time to sink or swim. Best of luck either way!

 Hey @Tom Shallcross so I have confirmed that the top is renting for $700 and bottom unit is being remodeled prior to closing. I read the lease agreement for up top that signed a 1 year Dec 1, 2018 for $700/mth and.........