I recently had a buyer ask me, “should the seller be responsible for that repair” regarding a big-ticket item found during inspections. What repairs are a homeowner responsible for? That’s a question that can have several different answers, depending on who you ask. The buyers point of view would be purchasing a home free of any defects and the sellers normally have a different way of thinking. Bank owned properties and short sales are always sold in its current condition. Buyers can accept those conditions with the understanding those homes are commonly under priced.
When a home buyer negotiates exclusively with a seller, they can add specific repair request in the contract. The seller can agree or disagree, based on the terms and price of the offer. That’s the main reason my Coldwell Banker office strongly suggest a seller perform various inspections before offers start rolling in. A seller can have a firm grasp on even the least significant defects and prepare themselves accordingly. With a loss of home equity for most owners over the last half a dozen years, makes it unlikely they will be too excited with a laundry list of repairs on top of the huge equity deficit.
If an owner accepts an FHA or VA buyer, they have to assume the stringent repair guidelines required with these government loans. Most any blemish can be called out by the appraiser and will have to be repaired before consummating the deal. Attempting an “as is” sale with these type of loans is dubious at best, unless the property is in pristine condition from the out set. Unless it’s a brand new home, no property will be completely free of imperfections. If during the buyers home inspection a major flaw is found, they can request the seller either repair the problem or ask for a credit to fix after closing.
The seller can comply or reject the proposal. At that point, the buyer has two options. Either continue knowing the problem falls on their shoulders or cancel the agreement. If both buyer and seller are reasonable and the seller has the financial ability, a compromise can be made with each party participating in the repair. The older established homes that many buyers prefer will have some deficiencies. Most owners mindset living in those properties are, “we’ve lived in our home with those existing problems, you can also buyer”. Each situation is different and there’s never a clear-cut answer to what repairs an owner might be responsible for. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home and easy access to view local area homes for sale including pre-foreclosures.