Does the seller HAVE to make these repairs or am I buying a money pit?? Another homebuyer tip!

By
Mortgage and Lending with First Priority Financial Santa Rosa CA Mortgage Lender DRE#00628028

You found your dream home but now the inspection reports show lots of repair work that should be done. Of course you, the buyer just want to make sure you are getting a really good deal and not buying a money pit.

So... does the seller have to make those repairs??

Watch this 2 minute video and see that it’s not as simple as it sounds... although the basic answer is ‘NO’. The seller is not obligated to make any repairs at all.

Remember, everything in a real estate transaction is negotiable! Consult your real estate agent on this matter and you may realize that it might not be such a good idea to ask the seller for anything at this point in the transaction, so don’t blow it!

 But if it looks like you are dealing with a reasonable seller, it certainly doesn’t hurt to ask them to either repair all or part of the items, or even consider giving you a ‘credit’ so you can fix them yourself later on. If the seller does agree to any monetary ‘credit’ , make sure that it is given ‘TOWARD CLOSING COSTS’. You won’t have to bring as much money into the transaction to close it this way.

DO NOT mention that it is a ‘credit in lieu of repairs to be made’ or your lender might start calling for those reports. Let me repeat that... DO NOT mention that it is a ‘credit in lieu of repairs to be made’ or your lender might start calling for those reports. You certainly don’t want to open that can of worms with the lender or your entire deal might fall apart!!

Just be sure that if you do get this credit, that you get the repair work done quickly. Having a home in disrepair will most certainly decrease it’s value, so get that work done and don’t let the condition deteriorate further.

For more information, contact Elise Groves, Mortgage Broker at 707.546.0440 or Richard Paille, Broker of Hart & Co. at 707.539.2001.

Happy House Hunting!

www.GrovesTeam.net

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Groups:
Sonoma County Real Estate
Active Rain Newbies
Tags:
repair
money pit
inspections

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Ambassador
957,367
John McCormack
Albuquerque Homes Realty * www.AlbuquerqueHomes.com - Albuquerque, NM
AlbuquerqueHomes.com, Albuquerque Homes Realty
Elia. Good information for everyone. I'm working a transaction now that is going to require some major seller contribution. Not a good idea for the lender to know of this
Aug 27, 2011 06:25 PM #1
Rainmaker
252,326
John M. Scott
BRE # 01442690, Scott Keys Properties - San Francisco, CA
Broker / Owner San Francisco Bay Area

You said it Elise! Never Ever say 'credit for repairs', Ever...As soon as you point at something, the lender sees it.

Aug 27, 2011 06:34 PM #2
Rainmaker
22,913
Elise Groves
First Priority Financial Santa Rosa CA Mortgage Lender - Santa Rosa, CA
Mortgage Broker,Banker, FHA, VA, Conv, Jumbo - Pur

John & John -  LOL!  Can you spell  N I G H T M A R E if the underwriter gets wind of it??    OR... you could always consider doing an FHA 230k renovation type loan as well, but that can come with it's own set of issues. 

Aug 27, 2011 06:51 PM #3
Post a Comment
Spam prevention
Show All Comments
Rainmaker
22,913

Elise Groves

Mortgage Broker,Banker, FHA, VA, Conv, Jumbo - Pur
Need more information about home loans? Contact me directly:
*
*
*
Spam prevention

Additional Information