FHA Appraisal question

[Anonymous]

Hello all,

First, thanks so much for answering all of our questions. It is great to have such knowledgable people at our fingertips

My sons appraisal came back fine, 3500 above the purchase price. My question is about the repair that is needed, some bricks need to be re-pointed and the owner is ignoring my sons  calls, this is a FSBO home. Is she liable to fix this or can she use this to walk away from the deal?

Thanks for your help.

[XAVIERSMAMA]

It depends on what contingencies were stipulated in the contract.  FHA may require a particular repair to be completed before they will insure the loan, but it's between the buyer and the seller who has to pay to get it done.  How much is the repair?  If it's substantial it can be used to further negotiate the price or seller concessions, but again it's really between the buyer and seller to work out a deal.  Your son will probably be able to use the inspection contingency or the financing contingency to get out of the deal if he doesn't want to pay for the repair and the seller won't either.

[Jazzzy]

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@Anonymous wrote:

Hello all,

First, thanks so much for answering all of our questions. It is great to have such knowledgable people at our fingertips

My sons appraisal came back fine, 3500 above the purchase price. My question is about the repair that is needed, some bricks need to be re-pointed and the owner is ignoring my sons  calls, this is a FSBO home. Is she liable to fix this or can she use this to walk away from the deal?

Thanks for your help.

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No. She's not.

Unless...did your son specifically negotiate in the purchase agreement that the seller had to pay for repairs?

Can she use this to walk away from the deal? Of course she can. If she did not agree to pay for repairs, she doesn't have to pay for repairs.

[Anonymous]

Thanks so much for your answers. She has agreed to fix the problem. Hopefully the weather will allow this. Real estate is such an emotional experience for both sides.

[Jazzzy]

I'm glad the seller agreed to fix the problem. That is how it often works these days, but certainly not always. That's why the up-front negotiations are so important. I've seen a lot of people get hurt in FSBO's...as they certainly can in any transaction, whether represented or not.