Mostly sold my house...

krishan · #1 01-29-2007, 12:14 PM

So a while ago I posted a question about realtors and selling my house. One of the useful pieces of information was to offer 4% to selling agent. I was worried a bit about the competence of my realtor.

Instead of listing it at 4% my agent screwed it up and listed 3%. But then a miracle happened and we got an offer the first day it was on the market for full price (199,000). They are buying it as an investment property. So my realtor actually got me the extra 1%. [img]/images/graemlins/smile.gif[/img]

Unfortunately the buyers want a lot done on the house. The inspection report is as follows.

The house is old and the HVAC is definitely on it's last legs. What I want to know is how much of this is really my responsibility and how much is the buyer just trying to gouge me and get set up for a good rental property. Thanks for the wisdom.

Krishan

SossMan · #2 01-29-2007, 01:11 PM

It's all negotiable in the offer. They are well within their rights to ask you to repair it. OF course, you are within your rights to tell them to take a hike. It's up to you to figure out what you would like to do. I would find out how much the work is going to cost and work out some sort of credit for them to have the work done so you limit your liability. Just make sure that your realtor gets a signed 'as is' addendum.
I would tend to try and work as much as you can with the full price offer since they are few and far between these days.

SomethingClever · #3 01-29-2007, 01:14 PM

It's just like any other negotiation. Make them an offer, see if they counter.

krishan · #4 01-29-2007, 01:30 PM

[ QUOTE ]
It's all negotiable in the offer. They are well within their rights to ask you to repair it. OF course, you are within your rights to tell them to take a hike. It's up to you to figure out what you would like to do. I would find out how much the work is going to cost and work out some sort of credit for them to have the work done so you limit your liability. Just make sure that your realtor gets a signed 'as is' addendum.

[/ QUOTE ]

We did the as is thing. Hopefully I can get a feel for how much I can push back. We are in the process of setting up contractors to do the estimates.

Krishan

SossMan · #5 01-29-2007, 01:53 PM

He's somewhat in the driver's seat since he's a buyer in a buyer's market and he made a full price offer. So long as the repairs aren't too substantial, I would definitely consider working with him on a credit for the repairs. Many times, it's not stuff they actually care about, it's just a way of getting a little more off the price, so let's say the total comes to $4k. You can offer him a $2,500 credit for 'general repairs' and have him sign off on the AS-IS and call it good. That way, you and/or your contractor don't have liability for the workmanship.

Thremp · #6 01-29-2007, 02:44 PM

krishan,

Just make sure it passes inspection.

krishan · #7 01-29-2007, 03:08 PM

[ QUOTE ]
He's somewhat in the driver's seat since he's a buyer in a buyer's market and he made a full price offer. So long as the repairs aren't too substantial, I would definitely consider working with him on a credit for the repairs. Many times, it's not stuff they actually care about, it's just a way of getting a little more off the price, so let's say the total comes to $4k. You can offer him a $2,500 credit for 'general repairs' and have him sign off on the AS-IS and call it good. That way, you and/or your contractor don't have liability for the workmanship.

[/ QUOTE ]

I think we will probably end up offering money rather than actually fixing stuff. For the reasons you specify plus my time is too valuable to be shuttling between houses making sure stuff gets done.

FYI replacing the HVAC will probably run 6-10K alone. I've lined up 3 estimates but I think the total cost of all the repairs will be substantial.

Krishan

krishan · #8 01-29-2007, 03:09 PM

[ QUOTE ]
krishan,

Just make sure it passes inspection.

[/ QUOTE ]

Can you elaborate? I'm not sure what you mean.

Krishan

Thremp · #9 01-29-2007, 03:39 PM

Before the closing they'll hire someone to do a home inspection. So if you gangsta fix it (judging by the last post you are just gonna offer cash), just make sure it won't be an issue again.

SossMan · #10 01-29-2007, 06:53 PM

[ QUOTE ]
[ QUOTE ]
krishan,

Just make sure it passes inspection.

[/ QUOTE ]

Can you elaborate? I'm not sure what you mean.

Krishan

[/ QUOTE ]

this is why it's better to simply get 3 estimates, show it to them, and offer them a credit for the amount. That way, you don't run into the problem of fixing it and them saying that they wanted something different. Credits work much cleaner.