4 Ways to Negotiate Repairs After an Inspection - How to handle repairs and avoid disputes
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- čas přidán 2. 08. 2024
- Looking to buy or sell a property? Learn about all the ways you can negotiate repairs during a real estate transaction. From asking for credits to getting the seller to fix certain items, we cover it all in this video.
The default in the North Carolina contract is that the home is sold "As Is." Seller may, but is not required to, engage in negotiations for repairs/improvements to the Property. For a while there, the market was so hot that Sellers were getting away with leaving the property as is. They were even getting offers that would waive the property inspection. But now that things have cooled down a bit, we are seeing that sellers having to concede to handle some repairs again in order for some deals to go through.
Nearly all houses of issues -- no house is perfect. When negotiating repairs, it is important to be clear about what is being repaired, who is paying for it, and when, knowing that minor repairs can quickly turn into major disputes.
While every situation is different, the buyer or seller may split some -- or all -- of the repairs that appear on the inspection report. Here are some common areas for repair that come up:
The Roof: This could be soft spots, excessive wear, moisture penetration or anything that could be an indication that the roof is failing.
Electrical System: Is the electrical system outdated or not up to code?
Plumbing: It's common for leaky pipes to stay hidden for years and then cause considerable damage.
Foundation: In some areas foundation settling is common, and shouldn’t be a cause for concern. But if there is major movement with sticking doors, cracking windows, cracked tiles/paint or other signs of serious imbalance it could be a sign of something much more problematic.
Termites and pests: Pests, wood destroying insects and/or vermin in the home are a red flag, and can be costly to remediate.
00:00 - Letter from Agent
00:30 - The State of the Market
01:39 - Contract Refresher...
02:25 - Option #1 - Property sold "as is"
03:26 - Option #2 - Price Adjustment
07:46 - Common Disputes
08:15 - Option #3 - Seller Makes the Repairs
08:55 - Option #4 - Escrow Arrangement
10:33 - Common Escrow Disputes
11:50 - How Disputes are Resolved
13:07 - Best Advice for Sellers and Buyers
14:42 - Closing Advice
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Thomas & Webber
514 Williamson Rd.
STE. #431
Mooresville, NC 28117
This channel is so underrated! Great content and great delivery!
Thank you. I am working w a realtor as a buyer under contract they found during the inspection some electrical issues possibly some slab issues and minor roof damage. I appreciate this video.
I had a friend who had her high-end home for sale. The buyer told her "we want your home. We will pay your asking price but we want you to put in all new windows first then we will buy your home." She did this because she really needed to sell this large home. I was stunned. This was no tiny, inexpensive repair..
I just canceled a contract because the owner had multiple issues that would probably add up to more than 10 or $15,000 worth of work. There is no negotiating I don't own the house if you want to sell it you fix these things then I will buy it
I'm in the middle of the buying process now and I am truly flabbergasted learning about how reckless people are when it comes to purchasing homes. Waiving inspections and paying for repairs, that just seems extreme. But I guess that's what desperation will do to you.
I ended up having to fire my real estate agent and try to terminate my brokerage agreement. I engaged a real estate attorney to take my case. When I explained what was going on to him, he got so mad he took the case for free.
The amount of pressure that agents and brokers apply to try and close deals, even when it is not in the best interest of the client, is astounding. It should honestly be illegal. It is not possible to have a fiduciary obligation but be paid based on commission from the sale. I don't care what anyone says, it is a perverse conflict of interest.
I will NEVER work with an agent again. I will only work with an attorney that I pay to represent my interests. They have their retainer, so they already have their money.
I think you're right. I have seen an agent's creed first hand. He thought maybe, I don't understand due diligence.
I’m in a contract, and after the inspection, major foundation issues were found. I’m considering backing out as the sellers are not wanting to fix anything.
similar situation
Major foundation issues? Definitely back out!
@@lifewellloved0204 I did!
Foundation???? 🏃♂️ 🏃♀️ 🏃♀️
Back out!
One thing I've realized as I'm trying to sell my first house, that I did considerable work on, is that real estate is just one big giant scam.
Oh this is from North Carolina oh my God this state I don’t know if it’s other states has been the worst saving money sucking transactions for all of that I’ve ever seen in my life even heard of this man on thousand dollars deposit
We are currently under a contract with first time home buyers. They were requesting an unreasonable repair, which we ultimately agreed to do to ensure we could close on time because we wanted to ensure we are able to close on our new home.. unfortunately they decided they still want to cancel. I am so bummed. They also want their Earnest money back. It's all very frustrating.
What city are you in? What was the repair and costs of the repair?
@CzarPharo The repair was asking for full roof replacement (despite buyers making their original offer of $281K (listing price was $280K) with an 'in its present condition' addendum) on the home, the detached 20X30 garage/shop, and the 15X12 shed despite roof contractors confirming no current issues with roof other than normal wear & tare. Evaluations by 4 contractors ranged from 3 to 5 years left on the current roof. The estimates for replacement were $9000 to $13000. We lived in Kansas City, MO. I got the agents to agree to reduce their commissions by $3000 to help offset the cost since neither one seem to be doing their due diligence. May have just been that the buyers ultimately got cold feet. Interest rates were spiking, and they were already at their max. Ended up selling home to another buyer 4 weeks later (fired first agent, relisted at $280K with new agent which delayed things; new photos, more showings/open houses...right in the middle of holidays) for $285K with agreement to replace the roof on the home only (cost $6800).
@@themiddlesister7890 Yes, sounds tedious, but it all worked out. Good deal
Otherwise, seller added the cost of replacing roof as increased sale price?
@mprrx no. The initial contract was terminated because the buyers walked away. I fired my agent and hired a new one.. we relisted the home at $280K. After a few weeks, we received an offer for $285K with the agreement we replace the roof prior to closing. We took it.
Please help out Ironland!
The lender, once they know that there's a credit for repairs can also decline to close until the repairs are done.
The buyer backed out because of the "inspection " report, but the reasons listed in the release of escrow form, were not in the inspection report. My agent said, "thats what the buyer told her" ...doesnt it have to be verified?? The buyer just wanted out and made up issues with the property that did not exist. My agent said there was nothing I can do!! We just signed the release.
Depending on your state the buyer may be required to share the home inspection with you to be released or to be eligible for the return of earnest money. Some states however do not require any proof of inspection or defects. As she said in the video though- if they share the inspection with you and you are made aware of a material fact or defect- you may be required by your state to disclose it to buyers going forward. Trust your agents judgement on how to handle that.
Please assist iron land
In contract. After inspection it was discovered that the advertised new roof was put over the old roof. This is a code violation and i cant even get financing because of this. Requested seller to put a new roof on correctly. Seller requesting i pay half. Seller cant even sell the property this way
omg.. What did you do ?
Experience now...I would need to research the code for roofing; insurance co. Will allow two layers; State farm allows 3. Ok 6 years ago. I have learned: No re-roofing, tear off please. Re-roofing is like paint and cover the issues.
Be careful using the words "property sold as-is". Not sure about NC, but that language can over write other clauses in the contract regarding inspections, due diligence, etc..
i knock off 10k and the buyers want more after inspection..will it ever stop?
This is us right now!!! It’s infuriating and I feel stuck in a corner because we’re contingent on selling our current home to get into our new home!! We already paying there closing, offered to fix some repairs, DID the repairs and they came back not good enough even though the work is done even better then some other things on the house
There are some buyers that are Jerks, have being there. Told them Adios.
Terminate sale. A better buyer will come along.
Our inspection showed $20000 in repairs, we asked for $2000 to redo the overloaded electric panel. The sellers would only agree if we increased the price from 385,000 to 387,000.
What was the outcome of your situation?
i need rewire or else i am walking away if they dont agree
50K pool repair? $10K to fill it in, problem solved. That's been my life for the last three months since we discovered the pool caved in during the winter right before putting the house on the market.
It's stupid that buyers demand of the sellers to make repairs. Buyers should do the repairs themselves.
Here's an option they never tell you about. The agents can agree to lower their commission equally or not to cover the costs of repairs!
Would you lower your paycheck to make sure an acquisition of your employer went smoothly?
Brand new pools are $50K, not pool repairs.
Pools for million dollar house are MUCH more than $50k
Why is there always side view of you?
Chloe, lay off the edibles🙂