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Should we move forward or walk away.

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Regular Contributor

Should we move forward or walk away.

From our agent:

The Seller did most of the items on the repair list but not all of them. 

The Seller did additional work which was not requested but were positive items. 

The Seller is out of money and can not do anything additional. 

The Seller is supposed to note the Repair Exhibit A to show what work was done and make a note as to who did the work. 

The first thing he arranged to be repaired was the Heat pumps on the hot and cool side per the Amendment.  Air Conditioning company went out but said they could not repair it until some electrical work was done and the voltage was increased. 

Electric company went out and replaced the main Electrical Panel and the Sub Panel and the service to those panels today.  ($2500.00 worth of work per Electric repair company).  I have asked them to send me a copy of what they did.
I am hoping to get this in the morning. 

The Air Conditioning Company is supposed to go out tomorrow to do the repairs on the heat pumps. 

The Seller had the house repainted at a cost of $1500.  His agent advised him against this and told him to use the money to pay for the repairs.  He told her when he moved everything out of there and took all the pictures down he said it looked bad, there were scuffs, nail holes and shadows where pictures were so he just decided that is what he wanted to do.

Our agent went by there today and the cracked window in the Breakfast room was not repaired and the living room exterior door frame had not been repaired 

The Seller put in the GFCI's himself and our agent had the Electrician look at them.

The Seller repaired the water heater in garage and put the additional water heater in himself or had someone put it in. Our Amendment specified a Plumber but he does not have a receipt for it. I checked with Plumbing Company and they are willing to go there and check the work done on the one in the garage and the installation of the additional one.  They would charge $75.00 to do this. We will have the list in hand when you go to walk through and check the work that was done or not done. 

You will be able to decide if you accept things as they are or not. 

As noted above, the Agent stated he has no more money and can not do any repairs. 

This is truly an odd situation. The Seller seems to have re-written his own idea of the repair amendment.  At this point we have to review what we have and make decisions based on that. 

As far as the judgments and foreclosure.  The Title Company thinks they may have it fixed. They will know tomorrow. 

I have asked the loan to send closing documents asap in the morning to Title so they can have the figures they need.  

Message 1 of 3
2 REPLIES 2
Regular Contributor

Re: Should we move forward or walk away.

I think it depends on how much you like the house and if you think you're getting a fair deal. No house is going to be perfect so if it were me I'd proceed since the repairs seem relatively minor. Also you're going to be out your inspection and appraisal fees if you back out now so that's also something to consider. But if it seems the house is in worse condition than you thought and it seems you're going to have to sink thousands getting stuff repaired-- like with electrical problems or foundation issues , etc. then I'd walk away. Maybe if you threaten to back out of the contract the seller will come up with more funds to fix the rest of the items as agreed.
Message 2 of 3
Moderator Emerita

Re: Should we move forward or walk away.

What are the repair items that were listed in the appraisal, if any?  

 

Those repair items required to be repaired by the appraiser must be completed before you can close. Repair items not required by the appraiser are optional. If the seller doesn't have the funds but had previously agreed to repair those items, ask the seller to give you a credit toward your closing costs for $X (whatever you can negotiate). That way you have the funds to make those optional repairs after you close. 

 

Remember that the seller is limited to a maximum of 6% of purchase price for a seller contribution. Also remember that the contribution has to be toward your closing costs and pre-paid expenses and not toward repairs. You would have to modify the contract with an addendum and submit the signed addendum to the lender. Check with your LO before you do this though to make sure it won't hurt your approval. 

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