Are you interested in buying a house that needs repair? Understanding the repairs and who pays for them can be crucial for your budget and peace-of-mind.
If you're interested in purchasing a house that is in need of repairs, there a few ways this can be handled.
Negotiate the cost as part of the offer
If the repairs are recognized prior to submitting an offer with an agreement of purchase, it is possible to submit the offer, clearly deducting and indicating that the reduction is to cover the cost of the necessary repairs. Example: The roof shingles are lifting and are in bad shape. The offer indicates that the reduction of $2,500 (or reasonable amount required) is to cover the cost of this repair.
However, you must keep in mind that the listing agent and seller may have already taken the repairs into consideration and have priced the home accordingly. This is where we help you determine what the true market value of the home is - prior to submitting an offer. The goal is to ensure you purchase your dream home and at the right price!
Negotiate a reduction after inspection
We always recommend a home inspection and make it a part of the home buying process. At that time, the inspector may find items (they usually find something) that are in need of repair now, or in the future. They will help you understand what it important and what isn't. We always ensure we are there during the inspection to help you understand what your options are.
Should there be items noted that are currently in need of repair, you have two options;
Revise the purchase price of the house to reflect the necessary repairs
In this case, we request a further deduction in the purchase price of the home to cover or offset the costs of completing the repairs (assuming the price did not already reflect this). Once you've taken possession, you arrange to have the repairs done. This way you have control of who does the work and how the work is completed.
Revise the agreement to indicate the seller is to repair the items prior to closing
In this case, a revision is made to include a condition for the seller to have the item/s repaired/replaced prior to closing. The details and the wording of this condition should be specific, to ensure the work gets done to ensure you're happy with the results. There is always the risk that the repairs don't meet your expectations and in that case our team and your lawyers would have to seek compensation from the sellers, which ultimately may involve a visit to court to have this settled.
We can help make this process easy and simple for you. It's all in the details and we ensure you're covered!
Considering to purchase or sell a home? Send us a text, email, message on social media or call us today for free information on our promotions and programs that help you get the most for your money!
Ariel Kormendy: 647.464.0957 (Direct) Sales Representative
Adrian Trott: 416.707.8401 (Direct) Sales Representative
Brokerage Independently Owned & Operated
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