Discount after pest and building issues

[Mike8t1]

Hello Somersofters
I have just received a flawed pest and building on a property in QLD which i have under contract. We are still in cooling off and found that there is water stains on a few of the ceilings throughout. Also there are cracked tiles on the bathroom floor which worried me that waterproofing may be affected here. It turns out that the stains and the bathroom are not near one another. The inspector thinks it may have something to do with stormwater leaking. My solicitor has informed the vendors solicitor and i am waiting on a response

In this case would you? Ask the vendor to fix the issues and provide proof or

ask for a discount on purchase price and do it yourself? How much a discount would you ask for

Cheers guys
Michael

 

[Jamie M]

Hi Michael

Personally I'd ask for a discount and get it sorted myself.

Cheers

Jamie

 

[Perp]

Unless it's a brand-new build, that doesn't sound outside the scope of the sorts of issues you'd expect to find in an existing house, so I think your options are to proceed or cool off.

Building and pest inspections are meant to check whether there are any hidden nasties that you couldn't spot yourself - such as bearers about to collapse - and prevent you buying a disaster.

This isn't a disaster; it has issues that sound typical of any established home.

A B&P is not an opportunity to re-open price negotiations.

 

[JDM]

You didn't notice the water stains and cracked tiles when you inspected the property before you signed the contract?

 

[spludgey]

Hi Michael

Personally I'd ask for a discount and get it sorted myself.

Cheers

Jamie

Interesting to hear a mortgage broker say that.
It's good in that you know exactly what's getting done and that they don't just pretend to have done it.
But it's bad in the way that it increases the amount of money coming out of your own pocket instead of out of the bank loan. This effectively decreases the LVR.

 

[pinkboy]

Interesting to hear a mortgage broker say that.
It's good in that you know exactly what's getting done and that they don't just pretend to have done it.
But it's bad in the way that it increases the amount of money coming out of your own pocket instead of out of the bank loan. This effectively decreases the LVR.

I think if you read into it, Jamie wasnt wearing his Mortgage Broker cap when answering the question, but instead was wearing his Investor cap - answering as if he was in the situation.

Most of the brokers on here are investors too, so you have to cut them some slack, as they do provide essential 'non Mortgage Broking' insight as well!


pinkboy

 

[spludgey]

I think if you read into it, Jamie wasnt wearing his Mortgage Broker cap when answering the question, but instead was wearing his Investor cap - answering as if he was in the situation.

Most of the brokers on here are investors too, so you have to cut them some slack, as they do provide essential 'non Mortgage Broking' insight as well!


pinkboy

I didn't mean to have a go, I just genuinely found it interesting.
I can see both sides, but I think it really depends which one is the better option. If you're going for a 95% LVR for example, then I think you should definitely try and get the vendor to pay. If it's low LVR, you might prefer to pay it yourself and get a discount.
Currently I'm in the process of buying a property that needed a new roof. I could have gotten a discount of the vendor, but I preferred to get her to pay for it.

 

[Jamie M]

I think if you read into it, Jamie wasnt wearing his Mortgage Broker cap when answering the question, but instead was wearing his Investor cap - answering as if he was in the situation.

Spot on.

I've also had to rework a few deals in the past when this has occurred. A lot of it comes down to the timeframes involved.

Cheers

Jamie

 

[Mike8t1]

Thanks for the feedback guys!

As i had not been in this situation beforehand, my question was aiming to get answers from investors who have been in the same boat and steered it safely to a win win for themselves and other parties involved.

Im not out to rip anyone off as i am happy with the deal but would love to avoid a disaster in the near future.

Cheers
Michael