Buying a house with a big issue - what to do?

[Slide Panda]

So, me n the (soon) to be missus have a contract on a house. As part of the inspection we had an engineer out to look at a retaining wall.

Good thing we did as the wall is not so good. It was improperly built - weep holes are too high up and not really weeping at all (shocking since it's been so wet here). The wall has shifted, and has a good lean.

It can be fixed - the off the cuff estimate is $15k for the job. Though the detailed repair plan might shift that, probably up since access is an issue.

The contract we have noted the inspection of the wall as contingency - so we can just walk with no pain save for the inspection costs.. of and me being homeless.

Has anyone else been on either side of a big negotiation point like this?
What was the outcome?

$15K is a lot of trouble to buy into... and I'm sure that the seller knew the wall would be an issue.

[Artful]

I'd want ten off or I'd walk.

[MendoDave]

what sort of retaining wall is it? for the front yard? is it part of the basement? what is it for?

[Slide Panda]

This house.
http://www.redfin.com/VA/Arlington/2715-S-Inge-St-22202/home/11277089

The wall is in the back - see photo 27-29.

It retains the hill over the "backyard".

That help D?

[MendoDave]

It makes a difference. Since its not part of the house structure, and it doesn't look like its holding a whole hillside back (what might be called a mountain out there on the east coast)  Just negotiate the price down a little like Artful said.

[Slide Panda]

That's the plan... we'll see. The owner hasn't been totally reasonable so far. Or at least didn't seem it, and I'm wondering if their hard line negotiations were because they knew the wall was an albatross that would cost them in the end.

I've given out a 'or we walk' number - so let's see those dice roll.

[RAT900]

give the owner the option to remediate it or supply the costs to cover remediation

or walk

it is a buyer's market lately (albeit maybe not in Arlington Va.)

[Slide Panda]

It's not the buyers market it might be in other places, but still leans.

And this retaining wall issue will just drag it down. The lady who owns it needs to get a proper perspective or it's going to sit and she'll have to lower the price. I can't think that no one else would notice the leaning tower of retaining wall besides me.

We were the first offer after it'd been on market 3 weeks.. ain't a good position for her. We'll see.

My position gets better, as my house sold w/o ever going to market... I can wait her out

[Scooter Montgomery]

Plan:

1. Buy house
2. Buy shovels
3. Buy beer
4. Host the first Ducatis Fix My Retaining Wall weekend.

[Slide Panda]

A novel notion but we can't just tear to down and build up. There's more going on above...

[ducatiz]

We are putting in a wall in our back yard -- it slopes away from the house too much and not flat enough to put up a playset or play football.

Got 4 estimates for a 60' wide wall, with sides about 40', about 4' high at the high side fading into the ground near the house.  About 1000 cu yds of fill dirt.

This is 6x6 timbers with deadmen and sunk posts all around.

High estimate was $65,000

Low estimate was $22,000

I found another guy who works alone and hires day laborers.  He said he could do it for materials + $5000 (about 15000 total) and I would have to get my own fill dirt hauled in (about $1500 for the hauling, the dirt is free) and another $1000 for the top soil, seed and straw.

Prices in this area are all over the effing place.

I would demand the price to be dropped by your best estimate of cost

OR

put in a sale contingency that the seller agrees to pay for the cost of repair based on the average of 3-4 estimates from Service Magic.com.  (I have used them plenty and they almost always get good people). 

There are plenty of hungry contractors out there right now.

[Slide Panda]

put in a sale contingency that the seller agrees to pay for the cost of repair based on the average of 3-4 estimates from Service Magic.com.  (I have used them plenty and they almost always get good people). 

^ This

We had a structural engineer look it over, so the $15 number is his off the cuff estimate. It's not a super huge project, it's just getting at it is a pregnant dog. Theres not much room and gear would have to be humped in by hand, so the PITA tax brings up the cost

[dolci]

I walked years ago over an issue in a contingency.  Our house hadn't sold yet so we weren't in exactly the same situation BUT, I would definitely not want to have to take this one on at the start...

BTW - congratulations sound to be in order on the STB missus (missed that somewhere). 

[ducatiz]

^ This

We had a structural engineer look it over, so the $15 number is his off the cuff estimate. It's not a super huge project, it's just getting at it is a pregnant dog. Theres not much room and gear would have to be humped in by hand, so the PITA tax brings up the cost

his off the cuff estimate could be high or low.

We had estimate for a small wall in our front yard -- 12ft wide and 3 ft high.  High estimate was $6000, low estimate was $800.  WTF

[ducpainter]

^ This

We had a structural engineer look it over, so the $15 number is his off the cuff estimate. It's not a super huge project, it's just getting at it is a pregnant dog. Theres not much room and gear would have to be humped in by hand, so the PITA tax brings up the cost

I'd get real estimates...

engineers very rarely pay for what they draw.