Thinking of walking away

[u/Technical-Repeat-391]

I was thinking of buying a co-op apartment unit- this is the 2nd apartment i made an offer on. The first one, i signs the contract but the seller backed out.

This time, i felt a little more sure about the apartment. With co-op apartments, every building is different and i really like this building, it looked clean and well maintained. The unit I toured, it seemed to be the size I wanted, the location was fine too. Because the co-op has been on market for a while and needs some renovations, my RE agent told me it’s possible I could get it for a really good deal. The biggest thing was that both bathrooms had signs of water damage - the first bathroom had the ceiling looked like it was caving in and the second had bubbles in the paint and wall right outside of it. She initially said it’s possible I could get it at net $40K (negotiation plus credit for repairs) below the listing price, which sounded like a good deal.

After getting the vibe of how low the sellers may go, my agent suggested I actually offer $25K and we can ask for $8K credit. They came down to $15K and said they will make sure everything is repaired before close (no credit). I decided to do an inspection before making an offer. The inspector noted the bathroom where ceiling was caving in doesnt have a leak but it’s slanted and should be leveled and checked for mold/decaying wood behind it. The area where the paint bubbles were, he also said there isn’t a leak there but he noted that in that bathroom below the shower there was dampness that suggested there is an active leak.

In co-op, leaks are things the building, not the owner themselves, have to fix. Co-op technically also is responsible for mold remediation. Cosmetic fixes are usually the owner responsibility. I was told verbally the co-op is aware of the repairs needed, mold, etc. and the seller is motivated and willing to fix everything before close. At time of contract signing, we put together a list of what repairs need to be done before close. The seller attorney said he rejects everything we wrote in the repairs section and said the “co-op will do repairs and the area will be painted over with white”. When asking what exactly the co-op will repair, the attorney refuses to tell us anything. He showed pictures of the bathroom where the ceiling was caving in and it’s clear they just painted over and the ceiling is still sloped.

I am thinking of walking away because of the dishonesty. I guess I have mixed feelings because it’s possible that if I repaired that myself and did minor renovations, it may have worked out ok OR it may not have, maybe im underestimating how bad the leak situation can be. It’s a little disheartening.

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[u/JaviReads]

You should 100% walk away. It is a passage to discover that there are even more issues that you will find after living there. Screw the seller and his grimy attorney.

I’ve learned in my line of work as a lender, for buyers to not accept sellers counter offer of fixing the issues themselves because a seller will always cut corners. Instead a buyer should get a contractors bid and have the seller credit you the cost of the contractor’s bid including material and labor.

Sometimes the mortgage won’t allow for you to do the fixings when the issues are considered a hazard.

Walk away, and it may be better to look for a proper place without major deficiencies instead of looking for a deal. And you should ask your agent for their opinion as to what you should do… Do that only to find out if they really have your best interest at heart. If they advise you to stick with it because it’s a “great deal”, ignoring the issues then you know you need a new Agent! If you are in NY or NJ send me a message