HI and also the Buyer

[Rick Ramirez]

Hello fellow HI's, I recently made an offer to buy a home here in California. I did my own inspection and found that the Thermostat did not work as a result was unable to inspect the heating system. So I did a visual inspection and a few red flag concerned me so I requested that an HVAC tech inspect the property (a foreclosure by the way) they were reluctantly so I had it done anyways. The HVAC tech found a varietay of problems with the system and red tagged it. Because of the age 35 plus year the said it would be difficult to find parts for it. He also said it is most likely best to repalce it. My question to HI's who may have had a similiar situation in the past what do you HI's think the bank will do replace it, try to repair it or tell me to go take a hike. Little more info I have FHA loan and the prop is a Foreclosure. Your thoughts and time is appreciated.

Rick:cool:

[Dan Harris]

All you can do is ask. I've seen go several ways..
If it was me I would use the bird in the hand attitude. I got the money and ready to close. Give me a new unit or credit for an new unit, or I'll walk.

[Rick Cantrell]

You can ask for a reduced price, but don't expect one.

[Rick Ramirez]

Hey Dan, thanks for your prompt reply. Thats what I had in mind, as you may have guessed my realtor would prefer I look the other way but that isnt going to happen. I believe that the bank knew the condition just didnt expect that an HI would be the buyer. One of the panels had been previously removed which made me believe that someone may have looked at it. I figure others will find the problems so its not going to go away. Thanks again.

Rick

[Dan Harris]

Hey Dan, thanks for your prompt reply. Thats what I had in mind, as you may have guessed my realtor would prefer I look the other way but that isnt going to happen.

Rick

Heck you got a good realtor. Around here the ones looking for any excuse to close, tell the buyer , don't worry about it, the two year warranty that the banks paying for will take care of it.:D

[Ken Rowe]

FHA won't approve the loan with a red tagged furnace.

[Dom D'Agostino]

FHA won't approve the loan with a red tagged furnace.


Agreed.

Show them the inspection report and replacement estimate and they'll likely fix or replace it, although they still may tell you your deals off; the next buyer will get the new furnace.

[Jerry McCarthy]

This subject brings to mind another question.
Has anyone ever been called out to inspect a home they built when they where a building contractor in another life?
If so, did you share that info with your client and/ or their Realtor?
And if you did what was their reaction?

[Gunnar Alquist]

Hello fellow HI's, I recently made an offer to buy a home here in California. I did my own inspection and found that the Thermostat did not work as a result was unable to inspect the heating system. So I did a visual inspection and a few red flag concerned me so I requested that an HVAC tech inspect the property (a foreclosure by the way) they were reluctantly so I had it done anyways. The HVAC tech found a varietay of problems with the system and red tagged it. Because of the age 35 plus year the said it would be difficult to find parts for it. He also said it is most likely best to repalce it. My question to HI's who may have had a similiar situation in the past what do you HI's think the bank will do replace it, try to repair it or tell me to go take a hike. Little more info I have FHA loan and the prop is a Foreclosure. Your thoughts and time is appreciated.

Hey Rick,

Seems to me that it is a health/safety requirement. I would push them around to get a new furnace. At best, they might go for like replacement. If it were me, I would pay the difference and have a high efficiency furnace installed.

Rick:cool:


This subject brings to mind another question.
Has anyone ever been called out to inspect a home they built when they where a building contractor in another life?
If so, did you share that info with your client and/ or their Realtor?
And if you did what was their reaction?

Jerry,

I have not inspected a home that I built, but I have inspected homes that I have worked-on. I told them verbally and disclaimed it in the report. Of course, everything I did was perfect! :rolleyes:

[Rick Ramirez]

I would like to say that my Realtor was great, but he is just OK. If I didn't push for the HVAC inspection, he would have loved that I look the other way. Yes red tagged and an FHA loan, I'm hopping the bank will do the right thing and repair or replace. The HVAC tech said that repair may not be an option too old, most likely replacement. I'm hoping the bank will replace. It's the not knowing on what they will do that sucks. I figure that they could use some of that bailout money to do the work (most likely they have already used it all up in bonuses). Still looking forward to in-put from anyone who may have been in the same or know of someone that may have similiar transaction.

Thanks again,

Rick

[Don Burbach]

Around here appraisers are making sure the heating system works, water heater is lite, roof looks ok and other systems in the house are functional. Compare this to the loose drive-by' appraisal of yesteryear. Then, lenders are calling for fixes and asking for re-inspections(ugh).

Red-tagging a heater is a good thing. Takes the subjectivity out of the inspection. I love when PGE comes in and disconnects the gas and caps the line. I hear cases where the REO bank suddenly becomes more negotiable.