I have a contract to buy a IP. Bldg/pest rpt comes back negative – termites in various areas (most old, possible some new) – only way to ascertain full extent of damage is to take off some walls, floorboards and some ceiling panels. Seller says they will do this and repair, but for what price I’m unsure. I believe the CG of this place is unreal and I really don’t want to let it go. Its in an area of very high demand and the price I have is brilliant. Any ideas on what I can ask them to do so I can hold on to the place ? Have the usual 14 day clause for bldg rpt to come in – it’sup on Tuesday arvo next week.
CheersHi wombat,
The strength of your bargaining position really depends on how your termite clause is worded.
From experience, most termite clauses usually let the seller walk away if he or she doesn’t want to pay to fix the problem.
If your termite clause doesn’t really help, then it’s up to negotiations to try to come up with a win-win situation.
I would have thought that if you’re offering a good price, and the cost of repair is too high, there might be some scope to renegotiate the terms of the contract.
However, I strongly suggest that you get a solicitor to help you get the amendments to the contract done properly, so that it’s watertight. Otherwise, you might not be doing yourself any favours, especially if you really want to buy the property. Let me put this value proposition to you – what are the legal costs (probably less than $1,000) compared to the potential CG you’re so sure you’ll get (presumably in the tens of thoursands of dollars?)
Cheers
MI agree with M Wombat, if this deal is as good as you say it is then find a way to get a win-win situation. Like the experts say “Its all about people”, find out how both you and the vendor can resolve the termite issue such that your both happy. If you ask, the vendor might even offer to pay for some or all of the costs of repair. You never know what can happen until you try!
Best of luck,
Justin xDon’t let them ‘fix’ the termites. How will you know if they do a dodgy, ‘veneer’ job that even a pest inspector won’t tell
Instead, take the risk on yourself. Get them to get many quotes on cost of fixing termites. Choose the highest one and take it off the price. YOU GOT THE POWER AND THEY GOT THE TERMITES.
Think of how foolish they feel like with them using a loan to get rid of termites to get rid of a house. What a weak situation?
Give them a low cash offer and take the risk on yourself. GIVE THEM A PAINLESS WAY TO GET OUT OF THIS SITUATION. Cash, no hassles
Thank u kind people for advise. Very much appreciated. Will be using all options offered in letter to solicitor today. I know that vendor wants to use $’s from the sale to purchase land in a new estate & they need to move quickly as the land is selling like hotcakes – thus creating excellent bargaining power for me. [
] Will let u know how it pans out.
CheersLong and short of it is get a discount on purchae price. Estimate repair costs and seek that as a discount on original contract price. The negotiation is not over until the day of settlement.
Enjoy
AD [:0)]
(Andrew)“Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved.”
all the best brownwombat – let us know how you go!
Cheers
M
] Will let u know how it pans out.
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