This is my situation: I am buying a house that cost $101,000. The closing costs are $10,000. Because I am getting an FHA loan, the seller can only contribute 6% of the cost of the house to me for closing costs. That means I still have to pay $4000 for closing costs. I just had a home inspection done and found out that there is a structural issue with the house. Some of the floor joists have rotted on the ends and are falling down and the floor is sagging. Also, there’s no insulation in the ceiling. The house has not had an appraisal done yet. I was told by my real estate agent, who is also the sellers agent, that the FHA appraiser will not catch these things. What would be a reasonable repair request of the seller? should I just ask them to pay to have the floor joists fixed? Should I ask them to sell it for less than what the house appraises for and the amount that it would cost to fix the floor joists so that I could use that money to have them fixed if the lender will do that? Or should I just forget about telling the seller about the structural issue and pay for it myself somehow?
why would you taje on that bill...????!!!! absolutely not ,,,, now if the house was on the market and you got to them and accept a an offer wayyyy below market value maybe and after you get contractors to look at it and tel you how much it will cost..better to walk away than spend endless money on a property
Larry, This could be one of the many issues with having a dual agency relationship with a real estate professional. A dual agency means that the buyer and seller are both being represented by the same real estate agent/company. Since the general inspector discovered the structural issues, you should get a foundation company to inspect the floor joists and provide a quote to correct the issue. Once you have that information, my recommendation would be to ask the agent to draft a request for repair to address the structural issues meaning for the seller to pay for the floor joists to be fixed. If you are getting a terrific deal on the purchase, and you feel comfortable with the expense to correct the structural repairs, then you can do that. Regarding the insulation, although it’s not great that there isn’t any insulation in the attic area, it’s not as big of a concern as the floor joists. Hope this helps… be sure to get further investigation by a licensed foundation company.
Thank you for your helpful video. What if the total costs of reasonable repairs far exceeds the amount of the buyer's closing costs? In California, can the buyer ask for a seller credit greater than the amount of the closing costs?
That is a great question. And the answer is a little bit convoluted. Technically buyers can ask for any amount of a credit in lieu of repairs. Where it becomes an issue is if the buyer is getting a loan. The lender is not going to approve of seller credits towards their closing costs that would exceed the amount of the buyer’s closing costs. The buyer cannot ask for additional credits because the lender would become aware and if someone would attempt to do a side agreement i.e. the real estate agents, it would be considered fraud. Hope this helps!
I'm in contract; the house was on the market for 6 mos. We agreed on 5k off asking w/3% seller's credits towards closing. Inspection found Roof has about a yr or less and hot water heaters old & leaking. Is it fair that I ask for the hot water heater to be replaced and half the cost of the roof off the cost of the home? I'm not sure if I can get more credits because it's conventional. The seller just bought the home last yr for 42.5k less. There are other issues (i.e. flooring, small electric issues other weird modifications they made) but I want to focus on major issues and be fair. Is my roof/hot water heater request reasonable?
Hi Qiana, this question is one to ask your real estate agent. One of your real estate agents jobs is to guide you through the request for repairs and what would be appropriate to ask for. Many times the requested amount is dependent on more then just what repairs are needed to make the home inhabitable, i.e. current market trends, the asking price, the type of offer, the condition of the home, comparable properties, and much more. I cannot speak on your exact circumstance and what would be the right decision. Often I find that asking for some monetary compensation is appropriate, but as I said its dependent on your exact circumstance. Thank you for commenting, and good luck with your home purchase.
That’s a good question Victoria, If you are the only beneficiary, you have the ability to keep the home and of course, if it has a mortgage, you’ll have to be in a position to pay off that debt. If you are in a situation where there are multiple beneficiaries, and some of the beneficiaries want the proceeds from a sale instead of keeping the home, you would need to buy them out. Either way you most likely will need an attorney to help you through the process. Hope this helps!
Well, that’s an interesting question…I imagine you are in the process of buying a piece of real estate and an inspection occurred on the property. I always email the inspection to the listing agent so that it becomes part of the disclosures that technically would be sent to any future buyers. That way it encourages the seller to negotiate with us versus easily move onto another buyer. I don’t know of any rule that states a listing agent must accept a report. In your situation, I would simply email the inspection report (maybe with a read receipt).
I do not typically suggest that my sellers handle the repair side of transactions, or are involved in hiring contractors. Instead I encourage them to provide a monetary accommodation for repairs needed, such as paying a portion of the buyers closing costs. This way the transaction can move along as planned, and the buyer has some additional funds to work with regarding the necessary repairs after the deed has been transferred. This allows the buyer to pick the contractor of their choice. The only exception to this would be section 1 termite, which is when there is a termite infestation and it needs treated. hope this helps.
Hi Corey, when an inspection is done and a report drafted, the inspector’s photos should be of the current condition of the property. I’ve never run across an inspector using Google earth photos for an inspection report. Did this happen to you?
Is it illegal if someone states 'No work has been done by us' when the clause asks about renovations, improvements, permits etc; despite knowing full well they had.
BTU WHAT IF YOU FIN DROOFINH PLUMBING ELECTRICAL AND A SLOPING IN THE FLOORS, SAGGING IN THE ROOF AND GENERAL ELECTRICAL PROBLEMS...ONA 1`30000 HOUSE WHAT TO DO!? THE HOUSE BEEN ON THE MARKET FOR 4 MONTHS..AND HAD ONE FAILED PENDING OFFER BEFORE MINE, THEY SAID IT WAS BECAUSE THAT BUYER HAD A FHA LOAN AND THA THEY DID NOT WANT TO GET A STRUCTURAL REPORT AS fha REQUIRED HMMM ANY WAY NOT SURE IF THIS SI WORTH IT I LIKE THE HOUSE BUT JUST NOT SURE REALTOR IS NOT HELP
Hi, do you have a realtor or is the realtor you mentioned representing the seller? If you don't have your own agent I would highly recommend hiring one. With all the issues you mentioned it would be a very good idea to have further inspections done, but seeing as you already know about them you may have had them done already. Good luck in whatever you decide to do with this situation.
Hi Sarah, Actually the negotiation for inspection items ie. Request for Repair is between the buyer and the seller via their real estate agents. The attorney does not get involved with any Request for Repair although occasionally the attorney would want the decedent’s home to be sold “as-is”. But, in my experience most homes do have inspection issues that buyer’s request be corrected, and if the buyer’s request is reasonable, my recommendation is always to be willing to negotiate. Hope this helps!
Buyers should not use inspectors. Buyers should do what the inspectors do and check out everything before making an offer. What gives the inspector any more information than a buyer would have?
Many buyers do not have experience with determining signs of damage to a home so they don't know how to do a home inspection by themselves. If a $500 general inspection means the difference between a buyer purchasing a money pit or a home that is in livable condition then it is worth it.
@@ProbateandTrustHelp If they can't see the damage then is it really important? The inspectors don't check for hidden damages, only what they can see. And they get the inspection after they put the offer in. Should they inspect it themselves before they put the offer in?
Very educational, thank you!
Glad it was helpful, thank you for watching!
Thank you ❤
You're welcome 😊
Very informative 👍
thank you for watching.
Thank you for the tips. Very informative video, Thank you for sharing!
I'm so glad you found it informative, thank you for watching!
This is a very informative video! Thank you!
You are so welcome, thank you for watching!
Yes they used the Google pic for the roof and said it pooled in spots. The pics had my uncle's car in it and he's been gone since 2015
So true. There isn’t a perfect home. Smart tip to shorten the inspection contingency to 10 days.
thank Joan, I appreciate you liking and commenting!
This is my situation: I am buying a house that cost $101,000. The closing costs are $10,000. Because I am getting an FHA loan, the seller can only contribute 6% of the cost of the house to me for closing costs. That means I still have to pay $4000 for closing costs. I just had a home inspection done and found out that there is a structural issue with the house. Some of the floor joists have rotted on the ends and are falling down and the floor is sagging. Also, there’s no insulation in the ceiling. The house has not had an appraisal done yet. I was told by my real estate agent, who is also the sellers agent, that the FHA appraiser will not catch these things. What would be a reasonable repair request of the seller? should I just ask them to pay to have the floor joists fixed? Should I ask them to sell it for less than what the house appraises for and the amount that it would cost to fix the floor joists so that I could use that money to have them fixed if the lender will do that? Or should I just forget about telling the seller about the structural issue and pay for it myself somehow?
why would you taje on that bill...????!!!! absolutely not ,,,, now if the house was on the market and you got to them and accept a an offer wayyyy below market value maybe and after you get contractors to look at it and tel you how much it will cost..better to walk away than spend endless money on a property
Larry, This could be one of the many issues with having a dual agency relationship with a real estate professional. A dual agency means that the buyer and seller are both being represented by the same real estate agent/company. Since the general inspector discovered the structural issues, you should get a foundation company to inspect the floor joists and provide a quote to correct the issue. Once you have that information, my recommendation would be to ask the agent to draft a request for repair to address the structural issues meaning for the seller to pay for the floor joists to be fixed. If you are getting a terrific deal on the purchase, and you feel comfortable with the expense to correct the structural repairs, then you can do that. Regarding the insulation, although it’s not great that there isn’t any insulation in the attic area, it’s not as big of a concern as the floor joists. Hope this helps… be sure to get further investigation by a licensed foundation company.
What did you end up doing? I will NEVER go thru the sellers agent Ever Again!!
Thank you for your helpful video. What if the total costs of reasonable repairs far exceeds the amount of the buyer's closing costs? In California, can the buyer ask for a seller credit greater than the amount of the closing costs?
That is a great question. And the answer is a little bit convoluted. Technically buyers can ask for any amount of a credit in lieu of repairs. Where it becomes an issue is if the buyer is getting a loan. The lender is not going to approve of seller credits towards their closing costs that would exceed the amount of the buyer’s closing costs. The buyer cannot ask for additional credits because the lender would become aware and if someone would attempt to do a side agreement i.e. the real estate agents, it would be considered fraud. Hope this helps!
I'm in contract; the house was on the market for 6 mos. We agreed on 5k off asking w/3% seller's credits towards closing. Inspection found Roof has about a yr or less and hot water heaters old & leaking. Is it fair that I ask for the hot water heater to be replaced and half the cost of the roof off the cost of the home? I'm not sure if I can get more credits because it's conventional. The seller just bought the home last yr for 42.5k less. There are other issues (i.e. flooring, small electric issues other weird modifications they made) but I want to focus on major issues and be fair. Is my roof/hot water heater request reasonable?
Hi Qiana, this question is one to ask your real estate agent. One of your real estate agents jobs is to guide you through the request for repairs and what would be appropriate to ask for. Many times the requested amount is dependent on more then just what repairs are needed to make the home inhabitable, i.e. current market trends, the asking price, the type of offer, the condition of the home, comparable properties, and much more. I cannot speak on your exact circumstance and what would be the right decision. Often I find that asking for some monetary compensation is appropriate, but as I said its dependent on your exact circumstance. Thank you for commenting, and good luck with your home purchase.
What do you do if the descendant wanted the home to stay in the family and not to be sold and how to do this as executor and a beneficiary?
That’s a good question Victoria, If you are the only beneficiary, you have the ability to keep the home and of course, if it has a mortgage, you’ll have to be in a position to pay off that debt. If you are in a situation where there are multiple beneficiaries, and some of the beneficiaries want the proceeds from a sale instead of keeping the home, you would need to buy them out. Either way you most likely will need an attorney to help you through the process. Hope this helps!
Any how ,the lender pulled out and I was forced to take a cash offer .
Hi Corey, Im sorry you felt forced to take the cash offer, I hope the final transaction went well. Take care.
Is it legal or bad faith practice to request NOT to see the home inspection as the listing agent?
Well, that’s an interesting question…I imagine you are in the process of buying a piece of real estate and an inspection occurred on the property. I always email the inspection to the listing agent so that it becomes part of the disclosures that technically would be sent to any future buyers. That way it encourages the seller to negotiate with us versus easily move onto another buyer. I don’t know of any rule that states a listing agent must accept a report. In your situation, I would simply email the inspection report (maybe with a read receipt).
As a buyer is it unreasonable to ask that the repairs needed be done by a contractor of my choice or at least we should agree on the contractor?
I do not typically suggest that my sellers handle the repair side of transactions, or are involved in hiring contractors. Instead I encourage them to provide a monetary accommodation for repairs needed, such as paying a portion of the buyers closing costs. This way the transaction can move along as planned, and the buyer has some additional funds to work with regarding the necessary repairs after the deed has been transferred. This allows the buyer to pick the contractor of their choice. The only exception to this would be section 1 termite, which is when there is a termite infestation and it needs treated. hope this helps.
What if the inspector cheats and uses Google earth pictures of the roof that are not the current roof , like 5 years old ?
Hi Corey, when an inspection is done and a report drafted, the inspector’s photos should be of the current condition of the property. I’ve never run across an inspector using Google earth photos for an inspection report. Did this happen to you?
Is it illegal if someone states 'No work has been done by us' when the clause asks about renovations, improvements, permits etc; despite knowing full well they had.
hi, this video is from 2020, the information within may not be accurate to the current market.
BTU WHAT IF YOU FIN DROOFINH PLUMBING ELECTRICAL AND A SLOPING IN THE FLOORS, SAGGING IN THE ROOF AND GENERAL ELECTRICAL PROBLEMS...ONA 1`30000 HOUSE WHAT TO DO!? THE HOUSE BEEN ON THE MARKET FOR 4 MONTHS..AND HAD ONE FAILED PENDING OFFER BEFORE MINE, THEY SAID IT WAS BECAUSE THAT BUYER HAD A FHA LOAN AND THA THEY DID NOT WANT TO GET A STRUCTURAL REPORT AS fha REQUIRED HMMM ANY WAY NOT SURE IF THIS SI WORTH IT I LIKE THE HOUSE BUT JUST NOT SURE REALTOR IS NOT HELP
Hi, do you have a realtor or is the realtor you mentioned representing the seller? If you don't have your own agent I would highly recommend hiring one. With all the issues you mentioned it would be a very good idea to have further inspections done, but seeing as you already know about them you may have had them done already. Good luck in whatever you decide to do with this situation.
Who Negotiate the inspection items ? The buyer’s agent or the buyer’s lawyer?
Hi Sarah, Actually the negotiation for inspection items ie. Request for Repair is between the buyer and the seller via their real estate agents. The attorney does not get involved with any Request for Repair although occasionally the attorney would want the decedent’s home to be sold “as-is”. But, in my experience most homes do have inspection issues that buyer’s request be corrected, and if the buyer’s request is reasonable, my recommendation is always to be willing to negotiate. Hope this helps!
@@ProbateandTrustHelp thank you so much! That was a great informative respond !
Buyers should not use inspectors. Buyers should do what the inspectors do and check out everything before making an offer. What gives the inspector any more information than a buyer would have?
Many buyers do not have experience with determining signs of damage to a home so they don't know how to do a home inspection by themselves. If a $500 general inspection means the difference between a buyer purchasing a money pit or a home that is in livable condition then it is worth it.
@@ProbateandTrustHelp If they can't see the damage then is it really important? The inspectors don't check for hidden damages, only what they can see.
And they get the inspection after they put the offer in. Should they inspect it themselves before they put the offer in?
Repairs average 2.5 percent.
That’s it.
Escrow is Latin for skin the seller.
hi, this video is from 2020, the information within may not be accurate to the current market.