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[CAN] Supposed to close on home purchase 1 Apr, house had new water damage this week

Hey all,

Hope I can ask a question here.

We have an accepted offer to buy a home with a close date of 1 Apr. We're supposed to sign tomorrow (29 Apr).

This past week, the sump system failed and the basement flooded with about an inch of water. The owner had all the laminate flooring pulled up, based boards removed, and a section of drywall removed to assess damage.

We asked the seller to move the close to 1 May in order to give some time for proper repairs to be conducted before we finalize the purchase. The seller is adamant about not moving the close.

The seller offered $7k in cash so that we can proceed with the repairs on our own, or, alternatively, he'd do the work himself "as best he can". Based on pictures we've received, the damage looks minor (given the possibilities). We'd have to replace the flooring, hang a bit of drywall, replace baseboards, and mud/tap/paint. My estimate puts the cost at 10-12k to have the work professionally done. I ballpark the materials alone at about the $7k he has offered.

For reasons I can't figure out he doesn't want to go through insurance to complete the repairs. I can only assume that's because the basement wasn't finished under permit, or that he didn't have the appropriate insurance for that portion of the house.

We've asked to have our offer amended, stating:

  • Owner gets a repair estimate from a licensed and bonded contractor

  • Notary retains estimate + $8k from the down payment until the repairs are completed satisfactorily

Is there anything we can do to make sure we don't, um, get screwed here?

If this were a typical situation and time we would just back out, but unfortunately the housing market has been increasing at a steady pace (houses are going for 100-200k over asking) and it would be cheaper for us to just take the loss with the $7k and do the work ourselves than it would be to find a new house.

Any input/advise here would be greatly appreciated.

submitted by /u/DaymanTargaryen
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source https://www.reddit.com/r/RealEstate/comments/mfhdaz/can_supposed_to_close_on_home_purchase_1_apr/
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