Monday, April 13, 2015

Home Buyer Tips: Can I do the repairs before I close?

Very few houses, including new construction as well as existing re-sales, are perfect - except in the eyes of the seller.  There may be little issues or changes to the home the buyers want to purchase.

The issues may not be serious or very costly to fix but nevertheless  may be something that will need to be dealt with soon.  It may not cause a problem with the closing process but it may be something a buyer wants addressed before they move in.

So what is the best solution?    The easiest fix would involve the seller agreeing through the negotiation process to make repair before closing   If there is no time then perhaps the seller is willing to credit the buyer for the repairs at closing (part of the purchase negotiation). 

The the next best option is to wait until closing and delay move in until the issue is resolved (or do it at the same time).

But what If a buyer wants to do the repairs before closing? There are several circumstances in the real estate business I  recommend customers avoid such as:
  • Not having pest and property inspections.  
  • Not having a survey done. 
  • Not having an appraisal conducted.  
  • Allowing pre-occupancy by a buyer before closing.  
  • Letting a seller stay in the property after closing (unless a lease has been signed).
  • Making repairs to a house or paying for the repairs before closing
What happens if the deal never closes?  Is the money gone?  What happens if your repair person damages the home which is still owned by the seller? Why assume the risk?

Not all real estate transactions close.  There are laws, procedures and customary practices in place that exist to protect buyers, sellers and their agents.

I know a car does not cost as much as a house but would you put new tires on a car that is still sitting on the lot even if you were pretty sure the deal was going through?