NO REPAIRS WILL BE MADE… MAYBE.. DEPENDS © 2013 by Wayne D. Lewis, Sr.

The challenge of putting your home on the market is nothing short of a stressful situation for today’s Homeowner(s).  A checklist of what is supposed to be done, or not done will put just about anyone on pins and needles.  But there is one issue that becomes a perplexing one for today’s homeowner:  repairs!

 

Repair--- Don’t Repair

Many Homeowner(s), for the most part, take great care of their homes even before they put it on the market.  They have painted the interior and the exterior.  They have responded to practically every leak of a pipe, a presumed loose board, leak in the roof, or creak in their floors.  They have been the perfect steward of their homes.  Now, it is time to sell their homes, and for all they know, their homes will not require any major repair that they won’t have to, at best, pull out a small screwdriver,  replace a washer fitting, or tighten a screw.  In theory.

When putting their homes on the market, Homeowner(s) may be of the mind that their homes are absolutely perfect, and that anything that potential buyer finds wrong may seem like nit-picking.  So, the homeowner may decide, in advance, not to make any repairs.  As far as they are concerned, the house is in great shape.  No repairs means, no repairs.  Maybe.  We will see.

 

The Inspection Response

An accepted contract is great news to the homeowner, until the inspection response comes back 10 or 12 days later.  The perfect house that was the perception of the homeowner now appears to be ready to be torn down, rebuilt, or gutted and renovated.            

“What the hell happened?”

            “This is not our house!”

These are possible responses by Homeowner(s) who have no reason to believe that the inspection response that they have received looks like a child’s Christmas wish list of things the buyer is asking to be repaired.  What should the seller do?

Step Away from the Inspection Response List

It may not seem like apart of the remedy, but from a real estate agent’s perspective, the inspection report as well as the inspection response should not be looked at as though it is a death nil to selling your home.  As a Homeowner(s), a home inspection is not a personal indictment on you, or your maintenance of your home.  But it is an objective report of what an unbiased home inspector found that needed to be addressed.  But, as a means of responding to what was reported, you, as a homeowner, should now step back from the report, as well as the inspection response where the buyer is asking several things to be repaired.  In some cases, it appears that buyers are asking for the whole house to renovated, and they maybe.  But that is another story for another time.  Right now, let’s step away from the report and develop a strategy that could be worked out between the Seller(s) and buyers in order to try and move forward equitably on the sale of the home.

Options

Homeowner(s) always have options when it comes to how they will move on selling their homes.  Depending on what is being asked of them, a homeowner can

©     agree to repair all of the requested items on the response list and agree to move forward with the sale;

©     agree to repair a selection of requested items by the buyer, indicating by their initials which ones they will repair;

©     agree to provide a small repair stipend (where allowable) to the buyers at closing, or,

©      the homeowner can decide that they are not going to make any repairs at all on the home

 

These options are also suggested on the Inspection Response form (LA) where both buyers and Seller(s) can weigh out what will be the next course of action depending on what the Homeowner(s) decide they will do.  It is at this point, and a critical point it is, that Homeowner(s) have to weigh their options. 

 

To repair or not to repair.

To repair a few things, or to give a reasonable stipend;

 

Make or break decision?

The decision not to make any repairs doesn’t have to be deal breaker.  But it is important that Homeowner(s) have a strategy prior to listing to their home.  The strategy should include how much in dollars, if necessary, will they be willing to put on the side for repairs.  If for example, the seller budgets between $500 and $1000 for repairs, it is likely that amount can be deducted from any anticipated proceeds.  But the important thing is to include that budgeted amount when determining how much to accept on the initial offer from the buyer. 

 

It becomes a make or break decision for the seller when the inspection response comes back, and the list of repairs exceed the budgeted amount.  For the homeowner, it means going back to their budget and then determining what from the inspection response can be repaired within the budget.  After careful consideration, it is suggested that the seller, along with their agent, submit the response, and check off that part of the response that indicates either:

A.    The SELLER(S) is willing to correct only those deficiencies noted and initialed above and will do so not later than 5 calendar days prior to the agreed upon date of Act of Sale, and will provide PURCHASER(S) with copies of paid receipts, or proof of repairs;

B.     Unless disallowed by lender (if applicable), in lieu of SELLER(S) having the above deficiencies corrected prior to Act of Sale, the SELLER(S) will pay to the PURCHASER(S) at Act of Sale the sum of $ ___To Be Determined_.  Both parties agree to accept this sum as full and complete payment for the cost to PURCHASER(S) of having said deficiencies corrected after the date of the Act of Sale (even if the actual cost is more or less than the stated sum); or to apply said sum to PURCHASER(S) total cost at closing

 

Obviously, it is a make or break situation if the Homeowner(s) decide not to repair anything on their home.  A decision by Homeowner(s) not to repair anything, coupled with the Buyer(s) decision to ask for everything to be repaired may not be reasonable.  There has to be a balance.  As we all know, one lone deficiency could exceed a Homeowner(s)’ expected budget, regardless of any given reasonable set aside amount.  For example, an under slab plumbing repair, caused by roots from a tree, could run into the $1000’s.  If that amount of money has not been set aside, the Seller(s) have to decide what will be their next move, if they want to still sell their home.

 

Not Going to Make Any Repairs

The point of this posting is to remind Seller(s) that taking too strong a position on repairs because their home would seem to be in perfect condition, could put them in a bad position to negotiate with potential Buyer(s).  Seller(s) who take too strong a position on repairs are setting themselves up for possible disappointment, and leaving their homes on the market for an unnecessary, and avoidable amount of time.  It is the Seller(s) call. But is also the Buyer(s)’call they discover that a home needs repairs, but are put off by a  seller’s stated position: NO REPAIRS! For the buyer(s) any seemingly insignificant repairs (monetarily) could be cause for the buyer to move on to another property.  They are less likely to ask the Seller(s) to spend $250, or $800 in repairs because the Seller(s) pledge is not to make any repairs. 

 

Disclaimer:  Consult with your Realtor® or legal representative for the best direction in addressing repairs on your home.  This is not an attempt to solicit the clients of other broker or agents.