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IF THE PROPERTY CONTAINS DEAD TREES, A ROTTED OUT DECK, A DRIVEWAY THAT NEEDS REPAIRING, ETC., WHOSE RESPONSIBILITY IS IT TO HAVE THIS WORK DONE-- THE SELLER OR THE BUYER? SHOULD IT BE DONE PRIOR TO CLOSING?
Buyers Answers
These are detailed topics that might not have been included when the preliminary Offer to Purchase Document was created and submitted to the Listing Agent. However, they should be investigated and if possible an Estimate of Cost obtained from a reliable local vendor to repair the condition. Most vendors are glad to prepare a cost estimate because they know that if you purchase the home, there is a good chance that they will given the OK to complete the work at the price quoted.
Estimates of work to be completed should be discussed with the Listing Agent and the seller even before the home inspection is done. If you have realistic cost estimates for completing the work, you can try one of two approaches:
1. Show the cost estimate to the seller and try to get the work done at his expense prior to the closing. This is the best solution since you''ve added value to the home without any out of pocket expense on your part.
2. Show the cost estimate to the seller, explain that there isn;t time to get the work done before the closing, and get him to agree to an dowpockenward adjustment in price of the house = estimated cost of repair. This is almost as good a solution as Item 1 above, except that the work will be delayed until after the closing. This is advantageous to the seller in that his cost will be paid from a negative adjustment to the Settlement Amount paid for the house at the Closing; no out of pocket expense. Make sure that the vendor will honor his quoted price even though the work will be delayed.
3. Show the cost estimate to the seller. He may agree to pay only a portion of the repair, claiming the defect was built into the listing price of the house already. Try to get him to pay atleast half of the cost. His half of the cost can be adjusted into the Settlement Amount for the home at the time of closing. A piece of the pie is better than no pie.
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