So it looks like the townhome I was all ready to buy has some issues with the basement. The basement was finished without permits, and the home inspector suspects the wiring is not up to code. That's a big red flag. We've asked the sellers to have a licensed electrician inspect it. If he or she finds that it is indeed not built to code, then we'll most likely walk away from this one.

Our second and third choice homes don't have basements, but there are other things going for them. We shall see, we shall see.

So sorry to hear that, Peter.

But remember, time and money can fix most problems. Perhaps you can mitigate the electrical issues within the context of your existing agreement. Find out not only about the existing systems, but how much it would cost to have them remedied to your satisfaction. Perhaps the sellers will work with you on the financial aspects; you will certainly not be the only prospective buyers to make the discovery.

I have learned the hard way that there are certain things you cannot fix about your home - location, footprint and lot size come readily to mind. There is no substitute for "big", and those extra square feet in the basement are going to be very valuable as your family grows up.

Ask the owners to have a licensed electricain to update the wiring. Since using a house inspector is becoming a standard practice, the owners will most likely have this issue on every potential sale.

Oh! Oh! Oh!

Man, MY pet peeve. DIY homeowners who can't spend the time to figure out how to properly install mechanical and electrical services. Always a pain to redo.

Sorry to hear about that one. We went through a similar situation with our home, but we did buy it and I am still in the middle of correcting things (more closer to the end than in the middle).

This is why I get jealous seeing other people's home theater progress .

Since they have wood paneling in the basement, I suppose it shouldn't be a big issue. It's easier to take down and put back up than sheetrock, for sure. The seller's are meeting with their agent at 5pm eastern time. I don't see why they could refuse to have an electrician look at it.

Also, I like the idea of either having them repair it before closing (Nov 30th), or setting aside some money in escrow that we could use to have it done after closing. It wouldn't disturb us too much to have the basement being worked on while we lived in the home.

Good ideas guys, I'll pass them along.

Peter, lots of good advise. Out of all the mechanical systems in the house that could be "bad", the electrical is probably the most inexpensive to fix. If everything else checks out, I'd stick with it.

For me, the big red flag would be cracks in the foundation and water leaks. That is a far more difficult and expensive fix. Some questions for thought: What type of soil is there? Clay, sand, or rock? What is the grading like? Does it flow away from the house? Have they had water in the basement in the past?

Sorry, water and I are not friends. At our last place we had clay soil and the entire back yard sloped towards the house. With the spring thaw and nowhere for the water to go, my backyard stayed wet and completely unusable until July. My sump pump ran constantly and I actually burned out 3 of them in 10 years. Luckily I had an awesome foundation - not even a hint of a leak. It could have been a disaster.

Shawn

So the deal's off. The sellers released us from the contract. I'm fine with it, actually. On to house #2!

It wasn't meant to be.
Keep on looking, you'll know when you find the right home.
Good luck

Another note:

Today is my last day of work in California. And we're heading out early to hit a local pub for happy hour.

Yum! Lagunitas Maximus (excellent IPA!) and Anderson Valley Porter (ehhh, just OK). Buzzing nicely now.