Buying a condo - home inspection?

We recently signed a contract to purchase a condo in NJ. After the home inspection the inspector report says ';the centralized air conditioner is at its life expectancy, could not be tested due to outside weather temps';.Seller says it worked well last summer. Our attorney asked the sellers attorney if we cud have an escrow with 5K in there, which will be released once testing is done - they said NO. Then we suggested the warranty for a yr for $390 to be split by seller..they said NO. Now we r really suspicious and feel the ac doesnt work. If it works y wud u be not willing to budge at all? I am very close to saying we dont want the home since we will be broke soon after closing and will have no money to get a new system (around 5K; if god forbid it doesn't work). Any body has any other suggestions i can make to the seller (maybe an affidavit?). My husband thinks the home appraises for more than 10K on the price we will let is slide. How accurate is the bank appraisal?Buying a condo - home inspection?
The bank appraisal is usually dead on and in all due respect to your husband, if a trained professional doesn't think it's worth more, then it's not.



Stick to your guns and listen to the experts that you hire.



I would ask them to escrow for the replacement or no deal...trust me, they'll do it. They'll get a refund for what is left over after the replacement.



In this market, sellers are begging for a buyer.



Trust your instincts....they are very, very good.



PS: Don't do a home warranty....there are more strings attached in a home warranty that a pair of pantyhose run through a barbed wire fence and very frequently, those companies will find a way not to pay you.



They are good for a reassurance, but DO NOT rely on it to fix you AC.Buying a condo - home inspection?
walk away from the unit, better places out there than buying a 25 year old air conditioner. that will necessitate replacing the outside and inside unit due to the new Ozone Protection laws on freon.



But in all fairness, I have sold a unit last year that when they tested the NEW heat pump for cold air, it was too cold outside to work?? never did understand that one, but you have the same thing, but your's is OLD%26gt;



If you still want this unit call a Heating and Air cond guy to look it over.
The bank is interested i two things:

1] For the money we are about to commit to lening ror this property, is the property worth that money?



2] Does the Buyer earn enough money to consistently pay the monthly or twice monthly payment?



The appraisal of the property is approached by a few methods:

1] Other properties in the area having comparable sales within a specified peiod of time.



2] In the event of a fire or other insurable reason, how much will it cost per sq. ft. to correct the damage and do the rehab or reconstruction of the proeprty.



3] What is the total cost of reconstruction per sq. ft.



There may be other methods used.



The bank is only interested in protecting its interest in the property.



In real estate there are two very old expressions:

1] You [the Buyer] names the price.

They [the Seller] names the terms.



You [the Buyer] names the terms.

They [the Seller] names the price.



Somewhere in the middle there might be an agreement on price and terms.



2] A property - any property - is ONLY worth what the Buyer is willing to pay for it AND what the Seller is willing to sell it for - not one dollar more or less!



AND, when financing is involved, what the lender will appraise the property for and lend money for the mortgage.



THE ONLY way you're going to find out what the Seller's bottom line is, is to make a written offer on the property.



By the way: DON鈥橳 EVEN TRY naming the price AND the terms. it a toytal waste of time and very frustrating and aggravating.



Thanks for asking your Q! I enjoyed answering it!



VTY,

Ron Berue

Yes, that is my real last name!