Request for Repairs - Avoiding this major deal killer!
The ‘request for repairs”, occurring after inspections have
occurred but prior to all contingencies being removed, can become a major hurdle
to completing the transaction. This re-negotiation of a contract after several
weeks has elapsed can result in, at best, both sides a bit resentful and at
worst, a cancellation of the contract.
further complicate the transaction, the lender is often instructed to wait for
the inspections to be completed prior to ordering the appraisal. During robust
markets and lengthy appraisal time frames, this delay can be fatal to lock in
periods and can interfere with meeting closing deadlines.
remedy to this situation is for the seller to acquire a home inspection and
pest control report when preparing to sell. Having these two reports available
when an acceptable offer is made allows a prospective borrower to quickly
determine if the condition of the property is an issue in proceeding to
purchase. The seller’s investment of $500 - $700 upfront may allow both parties
to either eliminate any need for future repairs or to quickly address any
required re-negotiation surrounding the property’s condition.
there are times when circumstances suggest at least postponing the acquisition
of these reports in advance - short sales or other cases where there is a lack
of sufficient equity or cases of distressed property in which the condition is
of little concern to a cash buyer.
many sellers may not recognize the value of providing reports wherein the
transaction may move more smoothly and timely and even allow for the
negotiation of a win-win price for everyone, especially when a buyer feels that
there has been “full disclosure”. In other words, a home inspection report,
even if there are repairs to be made, allows an estimated cost to be factored
into the buyer’s offer. A pest report may be acceptable to the buyer because
s/he recognizes that the repairs are manageable. If the roof is older or shows signs of wear,
a roof inspection may reassure a buyer or identify what new roof will cost
allowing the buyer to proceed with an offer.
of viewing these reports as deal-breakers, they are more likely to create a
buyer confidence that will lead to an acceptable offer to purchase. Providing
such reports could be the best investment the seller will make in preparing a
home for sale.
Word/lending info/request for