Re: offer to buy house

[http://dummy.us.eu.org/robert (robert)]

 > From: Bhavani <http://www.adelphia.net/~bhavani>
 > Date: Thu, 17 Jul 2003 07:43:28 -0400
 >
 > Mom wants 24 hours for a final decision.  If she says no then it sounds 
 > like a good offer.  Do check with the lawyer of course.

In what way would I have to check with a lawyer?  Jim Peterson said just
call him once I have a buyer.

Did you get a chance to look at my problem list?  I'll include it again
below.  The main question is: if the "Potential Problems" turned out to be
actual problems and all the "Non-Inspections" were done and turned up
problems, how much would that cost?  My feeling is that (I think I said
this before) it would be about $25K, perhaps $30K, which brings down the
selling price to about $205K, just barely above assessment value...

Actually, I was looking at the CMA from Coldwell Banker chick.  One of the
houses that sold for $341K was assessed at $218,900.  Why??  I think my
assessment is overvalued, but, in a way, I'm thankful, because that seems
to be a "floor" for any appraisal for this place.

In any case, no house sold in this CMA was even close to its assessment
value.  What's more, if I sold this place through a broker for $250K, with
a 6% commission, that brings it down to $235K.  In other words, I'm not
saving the broker fee at all.  So, at this point, I feel that $235K is too
low.  I'll tell him tomorrow that I reject his offer.

(BTW, I think I would probably list this place at $256K if I listed with a
broker.  I believe that would be the break-even point.)

 > D & M

-------------------------------------------------------------------------------

KNOWN DEFECTS AND PROBLEMS
--------------------------
This list has been derived from a home inspection made in late 1997 and
notes I've added since then.

There are 4 types of problems with this house:
1) Known problems that haven't been fixed
2) Reported problems which I believe isn't a problem (i.e., non-problems)
3) Current non-problems but potential future problems
4) Inspections that were never done

Known Problems
--------------

* Motion-triggered front porch light doesn't work completely -- the light
  sensor doesn't work, but the motion detection part does.
* Fence needs to be water-sealed and then painted; the fence may be a
  candidate for replacement.
* The fence leans on the south side of the house; probably would need to
  coordinate with neighbor at 95 Union St. to repair this.
* Mortar needs to be added to gaps in the foundation on the outside.
* Gutters probably should be added to the south side of house; due to the
  thin roof-line, you'll probably need a certified electician to install a
  heating cable in the gutter to prevent ice dams.
* Drainage on brick patio should probably be improved; we installed a pipe
  that runs under the garden, but it needs to be cleaned.
* The wood bordering the garden probably should be replaced or possibly
  heavily water-sealed; a couple of pieces of wood were added there which
  could be used, but the old wood should be dealt with somehow.
* The remaining unpainted part of the rear overhang should be painted.
* The north-west 4x6 post under the foyer was rotted at the bottom is now
  sitting on top of a cement slab; the bottom portion should be replaced
  with a fresh piece of pressure-treated wood.
* The southeastern window frame in the front room was never completed;
  there are gaps which should be dealt with by a carpenter or handiman.
* The bathroom window should probably be replaced; it can only be closed
  completely from the outside (with a stick) and is currently just kept closed.
* The double-glazed window in the living room lost its glazing and
  insulation abilities; currently, a plastic sheet is covering it.
* The large windows in the living room has air leaks; the curtains help a bit,
  but they could be replaced.
* Mice occassionally get into the kitchen; we keep a humane trap set and
  release the mice elsewhere when caught; holes where the mice might be
  getting in were never found.
* The kitchen gets cold in the winter; insulation has been repeatedly
  added and is better than it used to be; during cold days and nights, the
  kitchen sink faucet must be turned on so the pipes don't freeze; further
  improvements may not be possible.
* Kitchen door closes pretty hard due to all the insulation around the
  edges; some of this insulation may be adjusted or removed to improve
  this, but the kitchen may become less insulated.
* Basement gets minor seepage through the basement walls on the south and
  south-east side of the house; lots of mortar has been applied in various
  spots on the basement walls, but during heavy rains and snow, the floor
  gets moist anyway; perhaps dry paint will help.
* Frame for rear door is rather funky and gaps butressing the frame from
  the cement slab need to be filled in a more permanent way (than the lame
  attempts so far).
* Central air conditioning works, but adding more freon would probably
  save on electricity bills.
* The furnace may be quite old and it's possible that the heat exchanger
  could be rusted; the heat exchanger has never been examined, but if the heat
  exchanger gets a hole in it, getting the furnace repaired would probably
  be cheaper than replacing it.
* The firestop over the furnace is too small and needs to be expanded.
* The threshold at the top of the kitchen stairs is broken and should be
  replaced.
* There is a hole in the northwest portion of the living room wall;
  filling or covering it would be good.
* The built-in bureau in the bedroom is missing a drawer.

Non-Problems
------------
* Connections to dry wells.  Advised to demolish the connections to them
  and fill with mortar.
* Rain cap for chimney.  Given mixed advice about this.
* "Missing sill claddings should be installed as needed."  Never
  understood this.
* Floor settlements due to "girders with long spans".  Was told by a
  carpenter that girder length is fine.
* The bathtub drain thingy doesn't work, but a manual plug works fine.
* "The washing machine waste line trap has no vent to the outside".  The
  vent looks fine and do not understand this assessment.
* Kitchen sink drain pipe is at a very low angle; we've never has to clean
  it since we capture most solid waste and add it to the compost.
* All funky electricity problems have been resolved, but 2 of the 3
  circuits are rated at only 15 amps each; power hogs are connected to the
  30 amp circuit in the living room via an extension cord; excessive power
  usage will just trip the breakers.

Potential Problems
------------------
* The previous owner admitted (after I bought the house!  sigh) that the
  roof was raised without a building permit.  The main problem was the leaky
  skylights which were replaced.  I haven't had any other problems with the
  roof or the addition so far.
* Woodpeckers have attacked the trim at the roof-line in the past; wood
  putty was put there and seems OK, but not completely sure.
* Carpenter bees have been spotted in various spots (fence and other
  exposed wood); none have been spotted on or near the painted wood
  members on the house.
* Carpenter ants have been spotted in the garden, but unaware of any
  coming near or into the house (the compost heap seems to control ants
  pretty well).
* Termites have never been seen in or near the house nor has there been any
  evidence of termite tunnels, but a small number of termites have been
  spotted near the fence.

Non-Inspections
---------------

* Carbon-monoxide.  A CO detector was never installed.  Don't know if it's
  a problem.
* Lead.  The waiver was signed saying that the previous owner didn't know
  whether there was any lead on the premises.  A test was never done.
* Radon.  Again, no tests were ever done.
* Asbestos.  Again, no tests were ever done.