We’re through inspections and appraisal on the The WI-1 House, and we’re scheduled to close by the end of the month…
The inspections went well, though the inspector found two relatively big issues. The first was the chimney — the previous owners had “modified” it to support a gas stove and had to cut through the brick and flue to make the modifications. We knew there were chimney issues, and disclosed them on our written disclosure for the house; we expected the buyers to request repairs and decided to wait until the inspection was complete to discuss how those would get done instead of doing them ourselves before we listed the property.
We had gotten a couple quotes in the $3000-3500 range for the chimney, but agreed to allow the buyer to get their own quotes from their contractors. Unfortunately, their quotes came in quite a bit higher than ours. Ultimately, we settled on giving the buyers a $4300 credit towards the chimney work — depending on the weather up there, it may or may not get completed prior to closing. I’m not happy about paying extra for their chimney contractor, but it’s my fault for holding off on doing the work instead of just doing it as part of the rehab (for some reason, it made sense to me at the time :)).
The second issue was the wall between the garage and the house — it’s technically not a firewall and it’s not insulated. The buyers requested that we add insulation and upgrade the sheetrock to make it a legal firewall. This isn’t too big of a deal, and the work will likely get done in the next couple days.
Those were the only major issues found. There were a few other minor things that we’ll be fixing as well (cracked window that’s under warranty, bad electrical splice in the attic, install a new hose bib, and fixing a minor HVAC configuration issue).
The appraisal was also done on this property, and came back a couple thousand dollars above the sales price. We’re thrilled about this, especially considering this is one of the highest priced sales in the neighborhood in a long time. According to our agent, the neighbors will be very happy as well, understandingly. The best part of the appraised value is that it means we should be able to get about $10-20K more for The WI-2 House than we originally anticipated, as it’s only about 100 yards away.
We’re scheduled to close by the end of the month, so hopefully nothing major will pop up between now and then…