The Inside Scoop
October 29, 2009
Celebrities from Spring Texas
November 2, 2009
You and the sellers have gone back and forth and have finally come to an agreement on the repairs. Yea!! You are one step closer to closing on your house in Spring Texas.
But wait! Who is going to do the repairs? Is the sellers’ cousin, Jim Bob, who is a self-proclaimed “Handyman Rock Star” going to do the repairs? Or are the sellers going to contribute money towards your closing costs in lieu of doing the repairs leaving you with the hassle of coordinating the repairs after closing?
Repairs are a hassle because you have to secure the quotes, schedule the repairs and then hope the contractors are on time, and finally approve the repairs. Easy to understand why neither buyers nor sellers want to handle the repairs.
If I am representing the buyers in the real estate transaction, I want the sellers to contribute money towards the buyers closing costs in lieu of repairs. Since my clients are getting ready to move into the house, their idea of how a repair should be done will more than likely be different than the sellers. The sellers won’t be living in the house too much longer and are not going to be concerned with how long the repair lasts.
If I am representing the sellers in the real estate transaction, I want the sellers to contribute money towards the buyers closing costs in lieu of repairs. If I have the sellers handle the repairs there is a possiblity the buyers may not agree the repairs were done properly. If the buyers don’t agree the repairs were done or done properly, the buyers could either delay or cancel the closing.
In some real estate transactions the sellers have already agreed to contribute the maximum amount allowable by the lender to the buyers closing costs. Leaving the seller no choice but to handle the repairs. In this situation I advise my sellers to have the contractors do exactly what is written on the repair amendment and for the repair receipt to also match word for word what is written on the repair amendment. I want to eliminate the potential for disagreement by the buyers.
I can’t make my clients follow my advise on how to handle repairs. I wish I could though. Especially when one of the pitfalls I was trying to protect them from occurs.
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