Looking for experienced perspectives.
I’m under contract on a 1985 townhouse in Southern California (~$585k). Inspection contingency is active (deadline is Jan 30). Sellers are currently “holding firm,” though my agent is pushing for compromise.
Key inspection findings:
- Roof at end of life — deteriorated/damaged shingles, holes, exposed nails, no drip edge → inspector says replacement needed now
- Active moisture intrusion at interior entry wall (elevated moisture readings, bubbling paint; signs of prior patching; moisture/mold specialist recommended)
- Water intrusion at exterior doors (staining at multiple door locations)
- Electrical safety issues (exposed wiring, open junction boxes, missing/failed GFCIs, panel deficiencies; 100A service noted as potentially insufficient)
- HVAC ~2004 + deteriorated attic ducting (furnace not fully tested because gas was off)
- Typical age-related items (exterior wood rot, galvanized plumbing, garage fire separation issues)
One positive:
Sewer camera inspection came back clean (ABS line to city connection; no cracks, offsets, bellies, or blockages; no repairs recommended).
I’m waiting on specialist estimates (roof, moisture/mold, electrician).
Question:
Assuming the seller does not meaningfully adjust price or credit, would you:
- Walk
- Proceed at a reduced price / credit
- Proceed as-is
I’m comfortable with age-related maintenance, but less so with unbounded water intrusion + a failing roof. Curious how others would weigh this risk, especially in the SoCal market. Thank you for any feedback!
Inspection shows failing roof + active moisture. Sellers holding firm — how would you proceed?
byu/CaliHeatx inRealEstate
Posted by CaliHeatx
12 Comments
That’s a LOT of red flags for 585k in SoCal. The active moisture intrusion + failing roof combo would have me walking tbh – that’s not just maintenance, that’s potentially structural damage you can’t see yet
The electrical issues on top of everything else just feels like death by a thousand cuts. I’d only proceed if they knocked like 40-50k off for the roof/moisture work alone
No credit? How bad do you want the house? With understanding at the low end of how much it will cost, and what the high end could be? Id walk.
Walk. Unless you’re prepared to buy a new roof, change to a 200 amp service, fix the water intrusion, tear out the dry wall, remediate mold, purchase new hvac system, and fix other electrical issues. Anything they give as a concession or credit won’t be enough to handle these issues, including the ones you don’t see.
Was it priced as a rundown house? Or was it priced comparably to a renovated house?
Walk away.
Walk away. The other issue is the cost of homeowners insurance and the ability to get it without replacing the roof.
Dont walk, run from this one, this is a no brainer.
Reason your agent is pushing for a comprise is so they can get paid for their time.
So Cal is not very specific.
What would a revamped ( all of the above issues recently fixed) home in this area sell for?
What price could you buy for; and then fix these items .. as a total cost?
How much of these costs has the seller baked into their pricing? At least in their minds.
Curious what the disclosure revealed as well.
The most powerful negotiating position to be in is being willing to walk away.
Does the current price represent the current condition?
If not get money back or cancel. You have to be willing to walk away to win any negotiation.
Move on
No matter what kind of credit you negotiate, once the lender sees the amendment agreeing to a big credit, they’re going to decline to make a conventional loan. This property will not qualify for financing unless someone does a rehab loan due to the repairs needed. And a rehab loan won’t work if the seller is not reasonable about the sales price. They’ll need to be willing to sell for a discount to cover all fixes being made at FHA approved contractor full retail price.
Basically you’re not buying this house, I’m sorry to say. Keep looking.
Next. It’s a buyers market