Skip to main content

Buyer requesting full roof repair?

For context: we have already purchased a new home and are paying for two mortgages. With interest rates so high, selling has been difficult for the market in our area. We've already had to reduce price 30k lower than the correct appraisal value because no one has the ability to purchase right now. We had an original buyer that fell through due to her financing. And now, we have a cash offer that seems to be going through.

The current buyer completed their inspection and informed that the roof is shot due to hail damage. They've asked that we compensate for the cost of an entirely new roof, where they would like to approve the color, style, and materials ( as they may want to upgrade it ).

After reading so many other experiences regarding roof replacements during a sale, many people on Reddit suggest that going 50/50 on a roof is a norm. But when we brought up the idea to our realtor, she said that we would have had to pay for a new roof anyway as homeowners, so we might as well go through our insurance and pay the buyer a credit for whatever amount our insurance approves. Keep in mind that there are no leaks, nothing is broken, just hail damage on the grit of the shingles.

We've already received quotes and they're at $18-20k. So depending on which quote we go with we were advised the process is that we would keep whatever check the insurance gives us, the house goes to closing and the title company retains a portion of the sale equivilant to the value of the credit. So when the buyer goes to repair the roof, they are only then issued a check for a specific amount and we are ensured to be closed on the sale.

However, I'm wanting to know if this is normal? Do sellers usually comp for an entire roof repair or is going 50/50 for a repair to a roof fairly standard practice? And how does the insurance company ensure that the check they cut for a roof repair gets used exactly for that?

All thoughts welcomed and I appreciate the advice!

submitted by /u/LordSunny08
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/163g2rx/buyer_requesting_full_roof_repair/
Labels:

Comments

Post a Comment

Popular posts from this blog

North Carolina – “One to Buy; Two to Sell”

I realize I will likely have to contact a real estate attorney but also hoping to hear insights and experiences from others! I have a house in NC that I bought by myself in 2009, and paid off, in full, in 2022. I got married in 2023. My spouse and I have not lived in the house as our "marital residence". We have maintained separate residences even after we got married. (That a separate topic!). I am now selling this house. Realtors have told us that my husband has to sign the deed at time of transfer but I am not convinced since the house has not been our marital residence. The realtors like to use the phrase "one to buy; two to sell", which seems like a broad-stroke statement which is not applicable under all circumstances. And of course, the realtors don’t realize the details of my specific circumstances: I purchased and paid for the house in full prior to marriage Only my name is on the deed And most importantly, we have never lived in the house as a marit...
Post a Comment
Read more

Question With Tricon "Pending ID".....

My wife and i, along with 2 other peopl applied to rent a house, and our application says "Approved, Pending ID". Anyone else know what that means? Do we pretty much have the place or are we missing something? submitted by /u/Itskrueger [link] [comments] source https://www.reddit.com/r/RealEstate/comments/1orixqj/question_with_tricon_pending_id/
Post a Comment
Read more

Aren't comps/CMAs useless with buyer credits at close happening now?

I'm looking into buying a new construction townhouse in my HCOL US city. I'm seeing builders offering interest rate buydowns worth $20k-$60k on $800k homes (rather than just lowering prices) in order to keep their comps high for their other units, now that buyer demand has been declining. I asked my agent about these, and he said these buydowns aren't even the full story: buyers can write all kinds of other credits into an offer, like their closing costs, prepaid sewer fees, etc. Apparently cash buyers can just write in a "buyer credit at close" for any amount in their offer. So a new townhouse that appeared to sell for $800k in the MLS might have actually been a cash offer with a $100k+ buyer credit at close, meaning the buyer only spent $700k or less in total, but to the rest of the world they can only see the $800k! So that made me realize I can't trust comps/CMAs for other new construction townhouses. The sales prices could be way lower than they appear...
1 comment
Read more