Inspection Repairs Not Done. . .
. . .and set to close today, closing was extended for another week but what to do when seller has been dragging his feet and not getting the repairs done, one of which includes entirely re-siding the place? Wait to close in case he does not continue with fixes? I mean keep pushing out closing until he does, already risking my rate lock. . .Anyone have experience with this? I have the forms saying he will fix the things we asked for but am not looking for a legal battle AFTER closing to ensure work gets done.
Well, one idea would be to close, and withhold paying an agreed upon sum of money until repairs are completed. This way, if the repairs are not made, the money could go towards those repairs.
When you close, you are accepting the property as is. If you want to go a head and close so you can keep your rate, you may want to negotiate with seller to put more than enough money into escrow to cover those repairs. Get quotes yourself to determine what an appropriate figure is. The repairs costs can either be:
1. taken off the cost of the house, but this may affect what the bank requires in regard to downpayment, etc. In other words, it may change the basis of the property
2. have seller give funds directly to you at closing, and have that reflected on the HUD-1 statement
3. Have those funds placed into an escrow account. Many times your closing attorney will place funds in his escrow account. As repairs are completed, you may present the attorney with repair bill and he/she will disburse funds. I beleive this is the safest of all options. You are sure you have the money for repairs, and the seller /bank are certain the money is being used for repairs, not a trip to Bermuda.
I certainly would NOT allow the seller to tell you he will pay out-of-pocket for the repairs after closing, or that he will complete the repairs after closing. You are just looking for a mess in those scenarios.
Good Luck!
I just found this handy site that allows you to get general construction quotes online in a matter of seconds. While there is no repair company that will guarantee the price, it will give you at least an idea of what cost should be for a specific repair.
http://www.get-a-quote.net/default.htm
If you want the property, try for conce$$ion$ at close.
Is the siding replacement included in the appraisal?
Are you legally documented that acdceptable repairs must be made by closing date as a term of sale? If so, I would force the issue and expect to have all parties I had engaged paid in full for their services in the deal, plus my costs of survey, etc.
I only buy "as is," with contingency for wood destroying organism inspection results, and delivery of clear title.
I do not believe in having the seller do repairs. Ever.
Only the low bid is acceptable to a seller, unless someone undercuts that low bidder. Often the seller can't afford to fix the house right.
I run a small roofing services business, and I routinely see where sellers shortcut the repairs and buyers pay the price later in terms of uncompleted repairs, hidden rotten wood, mold, unsaleability, etc. Often the same items that were on the buyer's inspection report turn up on the next buyer's report when the house is resold a few years later.
I would only advise seller repairs on home inspection issues to someone who had the work reinspected and accepted by a licensed contractor or a professional engineer. Or signed off on by the municipality if it was to be permitted and inspected.
The seller will always find a way to cut a corner and save a buck with jackleg contractors. Or the seller will do shoddy work that he/she is not qualified to do.
Repairs are never free. Buyer always pays the price. That's why we rehab. For profit.
Good luck,
[addsig]