Hi!
I was hoping to get some advice on a property we are about to purchase. It is an old (built in 1979), elevated (typical in Darwin) house, that has had no renovations or little done to it since it was built.
We have just signed the purchase contract (subject to pest/building inspection) and are in the beginning of our 3 day cooling-off period. I had a pest inspection done on the property today and all was found to be fine (some termite nests in trees, but no damage to the house). However, I noticed a couple of resonable sized water stains on the ceiling – just below where the toilet is located.
As the contract is not yet unconditional, but we have settled on the price, what can I do to make sure that this problem is not serious and will cost us a fortune to fix in the future? Can I still negotiate the price down or request the owner to fix it?
Should I get a plumber in straight away? A builder perhaps? What can they possibly do except confirm that it is water damage and advise ripping up the ceiling to know the extent for sure?
Thanks for your help in advance.
Hello CoG,
My thoughts are that unless the specific wording in the clauses specifically state that you are allowed to knock off $ xx dollars if yy is found to be deficient, then the clauses are simply “walk away” clauses.
That is, you either tear up the contract and walk away or proceed as if everything is honky dory.
If I was your Vendor and you tried to re-negotiate the price based on any discovered defect – no matter how large or costly, I’d have a good laugh and say that was why I let it go to you so cheaply. If it didn’t have the stain / damage / whatever etc etc the price would have been 1k / 5K / 10K more…
My limited experience has been these clauses, unless specifically worded as such with $ figures mentioned, are all or nothing clauses…no room for argy bargy there.
Hi CoG,
Don’t be scared off by Dazz.
Did the vendor say it was cheep? did the vendor mention the water, and that why it was cheep? I bet not.
Chances are, they do not know the extent of the damage, themselves. Before bothering to try and renegotiate, try and establish the extent of the damage and cost to fix (it may have been fixed and what you are seeing is only cosmetic).If there is some cost involved, then start the renegotiation. I’m going to assume that there the 3 day cooling off period is a walk away for any old reason, cooling off period. And that the subject to building/ pest have a seperate date (I’ve never seen a standard NT contract of sale). If this is the case you still have up until the date of specified for accepting building as being ok.
If it’s going to be costly and you are getting nowhere with the renegotiation. Simple put it in writing that you are cancelling the contract due to you being unsatisfied with items raised in the building report and subsequent costs identified to rectify the problems. And add that you are still interested in the property but under a new contract if you can agree with the vendor on a new price.
Don’t be afraid to walk away if you are not happy.
Don’t assume that the vendor know of problems. Dazz might be smart to twist things his way, but not everyone is.
12 month ago (almost to the day) I was in the same situation, and I saved $,000’s by bringing problems to the vendors attention, that they had no idea existed. We couldn’t agree on a price before the building inspection date, so I cancelled the contract. The next day they agreed to my price. It was a win/win , because I wanted it cheaper and after hearing about problems they really did just want out (as since signed the 1st contract the existing tenant had also stopped paying, but that another story).Good Luck
Mal
Getting out of your comfort zone, can help you become comfortable
Don’t be afraid to walk away if you are not happy.Exactly…it all comes down to how much you want the place.
But then I’m assuming that since you put an offer in on the place, it fundamentally has some attraction to you (location / yield / growth – whatever).
Water stain damage – regardless of how bad it is – is a fly speck compared to these much larger aspects of the property.
If you can get away with it by twisting the Vendors arm…good luck to you…but then they might be prepared to dump you and walk away as well if you ask for a reduction.
All comes down to how badly you really want the title.
Cheer up Mal, I’m not trying to scare anyone. Just calling it like I see it, as asked. Not everyone in the big bad world plays nicely in the sandpit…I’ve found she’s all a big swirling mass of negotiation / wants and needs. The degree to which one party decides to move is dictated by these, as amply demonstrated by your specific example.
Hi CoG,
No worry !I can share my experience with you. I had found building defects for 3 properties that I bought. I got the building inspection report to my solicitor and request him to write a letter to vendor’s solicitor to ask for a discount or to fit up all the defects that were in the report. All of them chosen to give a price reduction to my satisfaction , and the contract went on .
Remember : the vendor is as worry as you that you are going to walk away. The vendor normally will agree if you ask for reasonable reduction or even a little more, as soon as you show him the concrete evidence he will NOT agrue with you. And also the vendor prefer to have a price reduction rather than repair the defects. For the cost of repair,you can get a trademan to have a look and get an estimate on it .
I remember there was one vendor who refused to negotiate at first, but i told he is going to face the same problem with the next buyer and finally he agreed to my price.
Hope this will help you, good luck
Nickelben
I agree with much of what has been said.
The best news is that cosmetic water staining is easy to fix, as is the cause of water staining (leaks, ventilation etc..) Did you have a building inspection? If so what did that say?Hi CoG,
The same thing happened in a bathroom in a house that I bought – water stains, turns out the shower was leaking. We said either cut the price or fix it – they decided to fix it. Not a year later it had to be completely renovated as it had only been temporarily repaired. Being totally naive at the time we just believed it was fixed so it was our own fault but I would just be cautious if you get them to fix any leaking, I’d try to negotiate a price reduction that includes a bit extra in case it’s a nastier problem then first thought!
Hello All,
I dont mind adding a little too if I may.
What starts as a leak could be very much more than a comestic stain. Personally I would pay a building inspector to assess the exact cause and approx costing for repair.
Leaks in roofs can cause all kinds of nasty damage to building rafters and other structual damage.
It is upto to you if you want to take these extra costs on, which could mount up.
Did the leak come from fault in roof or pipe or hotwater system?
Play safety and have it inspected, I beleive it can help with negotiations on price
If the vendor decides to repair himself or have tradie do it, then also as for copy of the job carried out to ensure job was done and not patched.
good luck
Thanks for all your input. It has given me a direction and some confidence in carring it out.
We’ll be getting a plumber in to inspect this week to estimate the cost to fix. If it’s minor, I’ll get my conveyancer to send a letter requesting the vendor for a reduced sale price. If it’s major and they don’t accept a new offer, we will probably just walk away…we don’t want a property that could potentially have lots of other problems to fix in the future. [blink]
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