PROPERTY INSPECTION ANALYSIS – 2847 OAK STREET

• INSPECTION FINDINGS SUMMARY:
• Total Issues Identified: ___ critical, ___ major, ___ minor
• Total Estimated Repair Costs: $_____ to $_____
• Average Repair Estimate: $_____
• CRITICAL SAFETY ISSUES REQUIRING IMMEDIATE ACTION:
• 1. Electrical Panel (Federal Pacific): $_____ – MUST REPLACE
• – Fire hazard, insurance issues
• – Required for financing approval
• – Timeline: ________________
• 2. Foundation Settlement: $_____ – STRUCTURAL CONCERN
• – Severity assessment: ________________
• – Progression risk: ________________
• – Warranty options: ________________
• 3. Asbestos in Attic: $_____ – HEALTH HAZARD
• – Abatement required before any attic work
• – Disclosure requirements: ________________
• – Professional removal only
• MAJOR SYSTEM FAILURES:
• 1. Roof Replacement: $_____
• – Active leaks = immediate need
• – Insurance claim potential: ________________
• – Warranty available: ________________
• 2. Sewer Line Issues: $_____
• – Severity of root intrusion: ________________
• – Repair vs replacement: ________________
• – City responsibility check: ________________
• 3. HVAC System: $_____
• – Heating functional? ________________
• – AC completely dead
• – Energy efficiency impact: ________________
• ADDITIONAL INVESTIGATIONS NEEDED:
• 1. Structural Engineer for Foundation: $_____ (Priority: HIGH)
• – Determine if actively moving
• – Get detailed repair specifications
• – Timeline: Schedule within ___ days
• 2. Environmental Specialist: $_____ (Priority: HIGH)
• – Full asbestos survey
• – Lead paint testing (1962 construction)
• – Timeline: ________________
• 3. Sewer Line Second Opinion: $_____ (Priority: MEDIUM)
• – Verify repair vs replacement need
• – Check for additional issues
• FINANCIAL IMPACT ANALYSIS:
• Original Offer Price: $465,000
• Minimum Repair Costs: $75,200
• Maximum Repair Costs: $104,800
• Average Expected: $90,000
• Effective Purchase Price with Repairs: $_____
• Original List Price: $475,000
• Market Value After Repairs: $_____
• Investment Analysis: ________________
• NEGOTIATION STRATEGY:
• PRIMARY APPROACH: ________________
• □ Request seller complete all critical repairs
• □ Request significant price reduction
• □ Request closing cost credit
• □ Combination approach
• □ Walk away from deal
• OPTION A – Seller Repairs Critical Items:
• – Electrical panel replacement (safety)
• – Foundation stabilization (structural)
• – Asbestos abatement (health)
• – Total Value: $_____ to $_____
• – Pros: ________________
• – Cons: ________________
• OPTION B – Price Reduction:
• – Request $_____ reduction (based on average repair costs)
• – New purchase price: $_____
• – Pros: ________________
• – Cons: ________________
• OPTION C – Closing Credit:
• – Request $_____ credit at closing
• – Covers: ________________
• – Lender limits: ___% of purchase price
• – Pros: ________________
• – Cons: ________________
• OPTION D – Walk Away:
• – Justified if: ________________
• – Total investment at risk: $_____
• – Market alternatives: ________________
• RECOMMENDED APPROACH:
• Based on analysis, recommend: ________________
• Rationale:
• 1. ________________________________
• 2. ________________________________
• 3. ________________________________
• NEGOTIATION RESPONSE LETTER:
• Dear Seller/Listing Agent,
• Thank you for providing access for our property inspections. We remain interested in purchasing 2847 Oak Street and would like to address the inspection findings.
• Our licensed inspectors identified the following significant items:
• CRITICAL SAFETY ISSUES:
• • Electrical: Federal Pacific panel (fire hazard) – $3,500 average
• • Foundation: Settlement requiring stabilization – $15,000 average
• • Environmental: Asbestos requiring abatement – $10,000 average
• MAJOR SYSTEM FAILURES:
• • Roof: Complete failure with active leaks – $20,000 average
• • Sewer: Root intrusion and bellied pipe – $11,500 average
• • HVAC: Non-functional systems – $9,000 average
• Total estimated repairs range from $75,200 to $104,800, with an average of $90,000.
• To proceed with the purchase, we propose:
• ________________________________
• ________________________________
• ________________________________
• We believe this is a fair resolution based on the inspection findings. Please respond by [DATE – typically 2-3 days].
• Sincerely,
• [Your name]
• BACKUP NEGOTIATION POSITIONS:
• If initial proposal rejected:
• 1. ________________________________
• 2. ________________________________
• 3. ________________________________
• Absolute minimum acceptable: ________________
• Walk-away trigger: ________________
• TIMELINE & NEXT STEPS:
• Day 3 of 10: Initial inspection complete
• Day 4-5: Schedule specialist inspections
• Day 6: Receive specialist reports
• Day 7: Submit negotiation response
• Day 8-9: Negotiate resolution
• Day 10: Remove/retain contingency
• LESSONS LEARNED:
• 1. Always get specialized inspections for older homes
• 2. ________________________________
• 3. ________________________________
• 4. ________________________________