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Negotiating seller credit vs price reduction [WI]

After a spring and summer of frustration and fruitless home hunting, I finally had an accepted offer on a house in a "suburb" 45 minutes outside of Madison, WI on a 265k 1.5 story cape cod with everything I need and not much I don't. First time home buyer, so I acknowledge that there is a certain amount of emotion involved and that it is easy to fall in love with a place and end up not getting it for a variety of reasons. Cosmetically it is in great shape with a recently redone kitchen and very cozy living room. The roof is 20 years old, and all the mechanicals ought to have been replaced by now, but all of that is in line with other properties in the same price range and within my budget over the next 2-3 years. Being aware of those issues and knowing that anything else could come up during the inspection, my realtor was confident we could get 5-10k seller credit.

Then came the inspection, which confirmed the issues I was aware of and brought a handful of other small fixable problems to my attention. But the investigation into why there was a section of siding bulging out from one side of the living room revealed that it was built as an addition, with the floor joists placed directly on the soil. Said joists are rotten to hell and show signs of being crushed in certain locations which likely caused the movement resulting in the siding being pushed out. Obviously anything foundation or structural related is a major red flag, and I think the next step is having a general contractor take a look to get a full extent of the issue and a estimate of the cost to repair.

There is a good chance I just walk away from this one, but certainly there exists a dollar amount either in price reduction or seller credit that makes it worth it to go through with closing. I think at a minimum it would need to be 25k, pending a full understanding of the living room issue. Does anybody have experience in a similar situation?

submitted by /u/swanson_theory
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source https://www.reddit.com/r/RealEstate/comments/1wd6fq3/negotiating_seller_credit_vs_price_reduction_wi/

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