So we want to sell the apartment we just purchased

[gustavowoltmann]

This is continuation of our issue but since the subject matter is different I have it on a new thread.

We are left with a choice of either 1) hiring our own renovation company to completely redo the place and have the seller foot the bill or 2) handing back the apartment. We spoke to the home inspector and he said if we go route 2 it surely will involve legals and can drag on for months. While route 1 is more realistic and logical to all parties there is however the aspect of us not wanting to live there anymore. After all, Emotional Damage does exist.

So it leads us to route 3: redo the place then put it up for sale within a year of occupancy. As long as we don't incur a sizable loss we are fine with it. Has anyone come across anything similar (due to family emergency abroad for example), and do you think this decision will affect our reputation with the banks the next time we decide to purchase a house?

For those curious I'm a non-PR holding a spouse visa, with 100% loan.

Edit: Thank you everyone for the comments. We will start with getting the fixes done at seller's expense, no point in thinking too far ahead when the first steps haven't been taken.

 

[nicoleb07]

@gustavowoltmann I would recommend talking to a lawyer too. You can get an initial consultation for a reasonable fee, or a free one through a government office.

 

[scassidy77]

@nicoleb07 Happy cake day from your pals in Saitama

 

[nicoleb07]

@scassidy77 Thanks!

 

[gustavowoltmann]

@nicoleb07 That's part of the plan - if the seller decides to lowball us with offers like "we can only pay you as much as what we paid our renovation company" and that company is plain garbage.

 

[bigoink]

@gustavowoltmann Up to you but I have to say that saying you’ve suffered emotional damage and no longer want to live in your new apartment just because the heated floor got flooded seems like an overreaction. As 1 and 3 both begin with getting the damage fixed at seller’s expense, I would start with that and then see how you feel.

 

[twm]

@gustavowoltmann Why would you put it up for sale within year if you go through renovation? Just bad joujou or are you not staying in Japan?

 

[gustavowoltmann]

@twm The former. Wife is pregnant and she's not comfortable after seeing the whole place flooded.

Of course our sentiments may change afterwards and end up living there and be merry ever after. Instead of going through legal - with possibility of being on the losing end - we settle and decide later whether we keep or sell.

 

[mystical_faith]

@gustavowoltmann I'm sorry that you have to go through this. Realistically seems like your options will all take months. Options 3 probably benefit you the most of you can still at much higher price, but selling in Japan can take months or years depending on the price and location etc. Where's the location?

If it's 23ku I would go with options 3. Otherwise I would just go straight to lawyers. It sucks but you are hooked for months of battle either way.
If I were you taking the lawyer options probably the easiest way to keep sanity.

A friend of mine had his roof collapse few years ago while renting, he got paid to stay in hotels while the owner fixing it. Talk to the lawyer ASAP and find the most convenient way you want to take.
I could be wrong but I find realtor is useless for this kind of problems.

 

[gustavowoltmann]

@mystical_faith Thank you for the advice. It's in Kanagawa right by the Tama river, its walkable distance to the nearest station that can get to Shinjuku/Harajuku in 30-45 minutes. IMO the demand is there but we never intend to sell just to make a profit.

@rogueebear has brought up a good point of renting out, so we may consider that also.

 

[mystical_faith]

@gustavowoltmann I'd probably renovate and sell and move on. Get as much as possible from the seller. I can't imagine how hard it's to renting out, between pregnant wife, new baby, managing renovation, finding new tenant, managing any new problems for the tenant, and while having full time job. That's a bit unrealistic. Will put too much stress on the wife. But that's me.

 

[gustavowoltmann]

@mystical_faith Thank you for the sound advice. Much appreciated.

 

[resjudicata]

@gustavowoltmann I just wanted to add I'm sorry you're going through this situation. I wish you and your family all the best.

 

[rogueebear]

@gustavowoltmann You could also consider renovating and renting out too.

That would change the terms of your loan (higher interest) but depending on the location/demand of the property you could maybe get a good stream of Passive income from the place.

 

[dee436]

@gustavowoltmann I don't see why banks would care about you selling and paying off the loan to then presumably get another loan. They get fees every time you make a loan. They probably would rather you make as many new loans as possible. There are also real estate broker fees and government fees involved in each real estate transaction.

 

[mikemc]

@gustavowoltmann Why don’t you get the seller to “fix” the water damage on their dime. Then take the fixed place and decide if you want to sell/rent/live in it. These seem like independent decisions. Fixing the damage should be the first thing that gets done. Then reasses your options.

This isn’t America, you won’t make back money on renovations most of the time. Most of the time renovations here make it easier to sell a 20+ year old building, not actually increasing the selling price for more than the cost of renovations.

 

[gustavowoltmann]

@mikemc Getting the seller to "fix" it is like asking to put a band-aid on a bite wound. Since they did not disclose that there is heated floor system, its most likely that they might have hidden other things from us. Do you think we would still ask them to go ahead?

We were expecting to live in that place for many years, so flipping it never crosses our mind. However, I don't want to fall into the trap of "oh it's too bad, suck it up" attitude that is far too common in this country.

 

[string_theory]

@gustavowoltmann Some questions/comments coming your way:

Has the previous owner agreed to pay for the repair/renovation (in writing)?

Have you found out why the previous owner did not mention the heated floor? Have you uncovered anything else they did not disclose? Intentional or accident in your opinion? Is/was heated floor mentioned anywhere whether small print or in some obscure ad, etc, including the ones you happen to dig out post purchase?

Is cancelling the whole deal even possible ie option 2? I highly doubt the bank would accommodate. From their end, for one, transaction is complete and they won't do extra work to gain nothing, which is enough reason to stick the contract in your face with a clause in fine print that is basically a loophole for them to ever so politely decline.

 

[gustavowoltmann]

@string_theory My gut feeling tells me that they found out during renovation and decided not to disclose it since it is in the underfloor. However, the manifold is installed next to the gas/water switch at the entrance so anyone with some trades experience can tell right away. So the conclusion is they don't know what it is.

When they gave us a checklist of all the new installation, heated floor is not on it.

Although option 2 is possible we are not in the position of bringing a public company to court both financially and mentally, so our hopes is to play nice and find the middle ground everyone can agree on. That's the main advice from our lawyer/inspector/architect.