Special offer

How Should you Handle the Request for Repairs - With Care

By
Real Estate Broker/Owner with Home Jane Realty BRE# 01439865

When buying a Los Angeles home be prepared to put on your negotiating hat.Repairs

When you are caught up in the emotion of buying a home you may forget that there is another side to the process, the Seller.  Generally each side is trying to get the best deal for his or herself and is not always considering the other party.   Arriving at an agreed upon sales price is only part of the process, equally important is what comes next.  Even though a home is listed with the caveat “as is”, that really does not mean much.  Almost every Seller expects that they are going to receive a request for repairs.

The Request for Repairs

In Los Angeles it is required that a buyer conduct a home inspection or waive their right to one.  The standard time allotted for the buyer to do his or her due diligence is 17 days.  As a good faith tactic during contract negotiations this is often lowered to 10 days and sometimes even 7 days.  This is generally enough time to have your inspector come out to the property and also to order any additional inspections that may be suggested.  Once these inspections have been completed and you have the report(s) in hand, you will sit down and discuss your request for repairs  with your real estate agent.  And once the request is submitted the clock stops and the ball is in the Seller’s court.

You are now back to your previous position of possibly where you should consider that there is another side to this transaction.  The Seller.  Get your negotiating cap back out and think about the following:

What should you ask for?

When you look at your home inspector’s report you are going to see so many items for repair noted that your head will spin and you might think the house is about to fall down.  But understand that many of them are a symptom of the age of the house and are normal wear and tear, and may not be items for major concern.  The most common I see are:

  1. Electrical panels needing upgrade
  2. Electrical outlets not up to code
  3. Plumbing leaks
  4. Dripping toilets and faucets
  5. Cracks in walls
These are generally minor items that are probably not going to cost much to repair. And remember the previous owner has been living with them for awhile.
Major items of concern might be:
  1. Foundation cracks or lack of bolting
  2. Cracks in the chimney
  3. Wear showing on the roof
  4. HVAC that may need replacing
These items can be expensive to repair or replace.

Did you offer full price?

If you did then asking for all the items of major concern to be replaced may be the place to start.  You may get a positive answer to all or most of them.

Did you get the house for a little less than asking?

You might want to leave an item or two out of your request for repairs.  Asking for everything might get you a no on all.  Asking for selective repairs might get you all of them, but you should at least get some.

Did you pay significantly less than asking?

If so, you are probably not going to get much in the way of repairs.  Remember, the Seller is already losing and is not likely to give up more money.  So, when you do get the home for a good price be of the mindset that this probably will not come with repairs.  Think of it as having negotiated your repairs up front.

I know homes have fallen out of escrow over the request for repairs not being agreed to by the Seller, but if both parties can put themselves in the other side’s shoes, there can be a successful outcome.  Again, it is all about the negotiations.

Search Los Angeles Homes for Sale

 

 

Other Los Angeles Neighborhoods

Bel Air Hollywood Playa Vista
Beverly Center – Miracle Mile Hollywood Hills East Rancho Park
Beverly Hills Post Office Hollywood Hills West Santa Monica
Beverlywood Holmby Hills Silver Lake
Brentwood Los Angeles Studio City
Carthay Los Feliz Sunset Strip
Century City Malibu Venice
Cheviot Hills Marina del Rey West Hollywood
Culver City Mar Vista West Los Angeles
Downtown Los Angeles Pacific Palisades Westchester
Echo Park Palms Westwood
Hancock Park Playa del Rey Wilshire Corridor

Search Los Angeles Homes for Sale by Zip Code

Los Angeles Lifestyle Search

Return to Los Angeles Real Estate Information Page

Buying or Selling Los Angeles Real Estate

Buying or selling a Los Angeles home can be a daunting process in a city this size, especially if you’re new to L.A. Town. You’ll need a resident expert to show you around and help you narrow down the areas where you might like to live. I will help you find the perfect home in the right area to fit your lifestyle, budget and needs!

When I list and sell Los Angeles homes for my clients I strive to make the experience a pleasant one. My mission is to provide outstanding service while utilizing the best practices and systems available.

If you are an absentee owner, you’ll need someone to handle all the details that you can’t handle remotely. That’s where I come in – I’m there when you can’t be. I also specialize in lease property in Los Angeles.

For more information on how I can best serve your Los Angeles real estate needs, don’t hesitate to fill out the contact form or give me a call at 310-473-6919.


Read more: http://www.homejane.com/how-to-handle-the-request-for-repairs-when-buying-a-home.html#ixzz1axxnDZHV

Comments (89)

Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

David,  well actually, the upgrades would not be my list of suggested requests.  Presumably that was factored into the price.  What jumps up and bites you is what should go into the request.

Oct 18, 2011 04:14 AM
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Jane, Great post.  Well thought out and very informative.  Thanks

Oct 18, 2011 05:49 AM
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

Bob,  thank you.

Oct 18, 2011 06:37 AM
Dawn A Fabiszak
Private Label Realty ( Denver metro area, Colorado - Aurora, CO
The Dawn of a New Real Estate Experience!

Jane ~ well stated post.  Often times a buyer wants the house for bottom dollar and in perfect condition and the reverse for the seller (in awful condition but wanting top dollar).  Obviously our negotiating skills are what sets us apart from the other agents out there.

Oct 18, 2011 11:55 AM
Susan Neal
RE/MAX Gold, Fair Oaks - Fair Oaks, CA
Fair Oaks CA & Sacramento Area Real Estate Broker

Hi Jane - Excellent advice all around.  By the waye are not required to get a home inspection in our area, but if we do get one, and we mention it in the contract or any addenda that become a part of the contract, the inspection report must be given to the lender and they will decide what must be fixed.  So if buyer decides not to worry about fixing some of the minor items before close but the lender demands that everything be fixed, you will have a problem. 

On my Requests for Repairs, I carefully specify the repairs by description instead of identifying a repair by "as called out as item XX on the inspection."  Once the lender hears there was an inspection you may have just caused the deal to fall apart.  I urge my clients to always get an inspection, but I don't refer to that in the contract.

Oct 18, 2011 12:09 PM
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

Dawn,  that is so true.  It is all about getting each side to see the whole picture.

Susan,  I guess real estate is local even in the same state.  Our purchase contract includes a Buyers' Advisory and the contract includes a standard 17 contingency period which, of course, you can lower.  We are required to have the buyer waive the inspection if they choose not to do it. Lenders here do not require a property inspection report.  The only thing that is requested is a termite inspection report and if anything needs to be done it must be completed or waived prior to close of escrow.  

Oct 18, 2011 01:12 PM
Blake Russell
Sacramento, CA

Jane,

Very well written! I especially like your explanation of the home inspection report to the buyer. Anytime any of us can pick up a tip from our peers in dealing with the complexities on the other side of the purchase, we all end up a little better for it!

 

Thanks again for the great post!

Oct 19, 2011 07:41 AM
Patricia Beck
RE/MAX Properties, Inc., ABR, GRI, SRES - Colorado Springs, CO
Colorado Springs Realty

What a useful post for buyers!  Buyers often do not know what to ask for and the inspection reports can be quite extensive.

Oct 19, 2011 08:02 AM
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

Blake,  I am flattered.  Thanks.

Patricia,  it is a tough one to maneuver through.

Oct 19, 2011 08:39 AM
Nick T Pappas
Assoc. Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, Broker/Providence Property Mgmnt, LLC Huntsville AL - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource

Jane, our Inspection addendum's were recently updated to make it clear that it was to be used primarily for structural, or health/safety or hazardous conditions and to inform the buyer of the condition of the home they were purchasing otherwise a seller didn't have to make minor repairs per a request for repairs and the buyer couldn't rescind a contract for minor or cosmetic deficiencies a seller refused to make.

Oct 19, 2011 12:13 PM
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

Nick,  that makes a lot of sense.  Hopefully that will happen in other parts fo the country too.

Oct 19, 2011 12:55 PM
Lee & Carol Barbour, REALTORS
Murphy and Hayesville, NC; Hiawassee, Blairsville, Blue Ridge GA - Murphy, NC
Mountain Living Team in Murphy NC and North GA

Congrats on your featured post Jane. Especially in this market, if you've gotten a lower offer accepted don't expect to nit-pick the seller on the inspection report and repair request. As always great information and the occasional stirring of the hornets nest :)

Oct 19, 2011 04:19 PM
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

Carol,  occasional stirring? :)

Oct 19, 2011 04:28 PM
Juli Vosmik
Dominion Fine Properties - Scottsdale, AZ
Scottsdale/Cave Creek, AZ real estate 480-710-0739

Great post, Jane, and well deserving of a feature.  You're so right - it all about the price.  Also, you gotta love the inspection reports - if the inspector was thorough, it may seem like the home is ready to fall down.  But, they are doing their job and reporting EVERYTHING they see - that's the inspector you want, for sure.

Oct 20, 2011 08:14 AM
Sylvie Stuart
Realty One Group Mountain Desert 928-600-2765 - Flagstaff, AZ
Home Buying, Home Selling and Investment - Flagsta

Great post on inspection periods. I'm surprised standard is 17 days! In Arizona boiler plate is 10 days, I usually try to tease that out to 15. Very interesting!

Mar 26, 2012 10:45 PM
Paul Gapski
Berkshire Hathaway / Prudential Ca Realty - El Cajon, CA
619-504-8999,#1 Resource SD Relo

Thank you for sharing your blog; we need Real estate Professionals to share their comments and information regarding their markets and experiences. Thanks again from beautiful Sunny San Diego

Bingo well said.

Aug 05, 2012 01:07 AM
Elite Home Sales Team
Elite Home Sales Team OC - Corona del Mar, CA
A Tenacious and Skilled Real Estate Team

No matter what happens we are there as the experts to keep our head and help the buyer and seller understand what it means to have these reports.

Aug 05, 2012 01:32 AM
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

Sylvie,  interesting.

Paul,  thank you.

Mark,  absolutely.

Aug 05, 2012 03:59 AM
Wayne B. Pruner
Oregon First - Tigard, OR
Tigard Oregon Homes for Sale, Realtor, GRI

In my area the inspection period is generally 5 business days. Repairs are one of the most delicate areas to negotiate in a deal.

Oct 12, 2012 12:50 AM
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

Wayne,  yes they are.

Oct 12, 2012 03:14 AM