When I am working with Home Buyers, they always have questions about the process.  Usually, the questions will be regarding terms they are unfamiliar with, such as Under Contract, Possession and Closing Date, Contingencies, Concessions or Earnest Money.

But there are always questions about more practical matters, too.

This spring, I was working with some buyers who found themselves a great 4 bedroom home for their family.  One of the features of the home that really stood out was the large unfinished basement.  They were excited about the idea of finishing the basement as a huge entertainment area and home theater for the large family get togethers they were planning to host.

The Seller had many pieces of workout equipment in the unfinished basement area, including a pretty extensive set of barbells.  Eyeballing the equipment and the width of the staircase going into the basement, my buyers nervously asked:

What if the Seller Damages the House While Moving Out?  They had nightmare images of moving into their new home and seeing gouges out of the drywall going into the basement....

 

The Colorado Contract to Buy and Sell is very comprehensive when it comes to damages on a property.  There is an entire section devoted to just this question:

You will note that it states "ordinary wear and tear".  This does not mean holes in the walls caused during moving!

 

This section further defines what the Buyer's remedies will be should there be damages including terminating the contract, delaying the Closing Date until the Seller repairs the items, or having the Seller assign Insurance Proceeds to the Buyer.

 

How Can a Home Buyer Know Whether Damage has Occurred?  Great question!  You should always do a Final Walk-Through of a property you are purchasing, preferably on the morning of Closing.  Again, the Colorado Contract addresses this specifically:

 


There are 4 sub-paragraphs in this section addressing types of damage, including fire, malfunction of systems, even condemnation of the property!  Rest assured, the Colorado Contract will have you covered.

Questions about the Colorado Contract to Buy and Sell and the Home Buying Process?  Call me today!  720-341-5235

Jennifer Prestwich, REALTOR®

Your Castle Real Estate

 
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22 Comments on Homebuying FAQs:What if the Seller Damages the House While Moving Out?

20 Most Recent Comments Displayed Show All

JUN
08
2012
1,057,921 Points 246 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Jennifer- good question that I'm sure comes up.  And, yes.. always have a walk through. 
8:19am • #3
303,610 Points 49 Featured Posts Outside Blog Called Shot Master

A Final Walk through is critical!  No one wants to argue at the closing table, but it's even more difficult to argue after the closing!
8:30am • #4
181,384 Points 1 Featured Post Outside Blog Attended Rain Camp

I have had occasional damage found at walk thru, or the discovery of latent defects that were hidden...like no carpet under the bed, and wall unit, stains where the furniture dye permeated the carpet, holes in the walls covered up with pictures...and even nice designer fans replaced with el cheapo's...

The buyers receive compensation.

 

Eve in Orlando
9:06am • #5
1,364,411 Points 93 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Are the sellers always out at the time of closing in your market?

A walk through is very important but we sometimes have to concede and let the seller have a few days possesion after closing.  I think a walk through is still important but damage created by the seller or movers is still an issue for buyers to be concerned about.

 
9:12am • #6
235,133 Points Outside Blog Attended Rain Camp Called Shot Master

Jennifer -- you have set forth a very clear explanation for the process of protecting the buyer from decreased value, either accidental, or intentional - as Eve #5 mentioned.
10:08am • #7
226,568 Points 9 Featured Posts Localism Sponsor Outside Blog Called Shot Master

A common problem I see is that the sellers don't move out until right before escrow closes and as mentioned above, some even stay a couple of days after closing.  I've had sellers leave furniture and kitchen cabinets full of food and I get a call from some unhappy buyers. How do you deal with this situation? I end up paying to take care of it so my client is happy.
10:18am • #8
470,318 Points 50 Featured Posts Called Shot Master

It's best if sellers move before close of escrow and buyers should do a final walk-through. Like you say, Jennifer, if there are any damages the buyer can withhold closing until they are remedied. This is the best way to deal with this, in my opinion. Allowing the sellers to stay after close of escrow presents problems, as Jenny #8 duly notes. Thanks for your post today,
10:58am • #9
426,934 Points Outside Blog

A walk through is such an important part of the process; almost a must. Great Post!
11:21am • #10
301,008 Points 7 Featured Posts Outside Blog Attended Rain Camp

Hi Jennifer, great post! Final walk throughs eliminate a lot of problems and IMHO extremely important.
11:54am • #11
295,285 Points 20 Featured Posts Outside Blog Called Shot Master

Jenn, sounds like the CO contract has worked this potential problem through, but it can become another sticky wicket.  Timing sometimes prevents a walk-thru after the seller moves out and before closing/recording.  We used to have escrow withhold some seller's proceeds, like a security deposit, but escrow doen't like doing that any more because of disputes around its release.  Usually I keep my fingers crossed and haven't had any problems recently.  Thankfully, most sellers out here are really very responsible and repair any move-out damage without being asked.
11:57am • #12
1,547,993 Points 281 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Hi Jennifer....the final walk through must be after the movers have finished their job and everything is out of the house.... if they are moving during the closing, there should be a hold back of enough to patch walls and paint...
12:33pm • #13
338,550 Points 4 Featured Posts Outside Blog Hit Router Called Shot Master

Walk throughs are important and "knock on wood" most of mine have not had any real issues and those that did were quickly remedied for which I am really grateful.
7:29pm • #14
1,138,433 Points 91 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Yes the final walk thru is the time to judge if the seller has damaged the house on the way out.
8:13pm • #15
876,466 Points 18 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

The final walk-thru is the key .. It is best to do so when the seller has moved out.. and if at all possible a couple of hour prior to closing.
8:22pm • #16
790,245 Points 112 Featured Posts Outside Blog Called Shot Master

I have a contract on one of my listings where the buyer wants to do the final walk-thru 48 hours prior to closing. However, my clients won't be moved out at that point. Why would anyone do that? I always take my buyers to the final walk-thru the morning of closing. Then if there's a problem, we can address it there.
8:44pm • #17
130,656 Points

Oh man, this is the worst thing that can happen to an agent...  I had a transaction once, representing the buyer, and the seller wanted to save a few dollars by having her 3 sons move the furniture.  All went well until the last item--the piano.  They rolled it across a hardwood floor and left wheel mark grooves on the flooring.  The seller was kind enough to offer to pay for a new floor sanding and refinishing-- at a cost of $2,000.  Two things come to mind in a transaction...  1) Play nice,as we did, and she was glad my client bought the house, and 2) there are just some areas of moving that are not worth cost cutting on.  Moving is one of them...  Always use a reputable, INSURED moving company.
9:00pm • #18
1,363,859 Points 42 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Jennifer - This is a valid question and shows why it's important to have a walk through.
10:09pm • #19
1,003,664 Points 117 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

A walk thru prior to closing isn't going to show the condition of the property AFTER the sellers move out, would it?!?   The best clause is the where the condition of the property is what was existing during the contract.  If the "damage" wasn't showing up in the home inspection and documented then it's on the former owners, IMHO.
10:25pm • #20
JUN
09
2012
902,323 Points 51 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

The only time I really worry about this when they seller moves out of the house AFTER closing. Final walk throughs solve the problem when the seller moves out prior to closing. But when they lease back to the seller a few days to allow them time to move out.... I always worry if they will leave it clean, remove all of their things, etc. So far, thankfully, I have not had and major issues with this.
8:00am • #21
JUN
10
2012
454,158 Points 18 Featured Posts Called Shot Master

Thanks Jennifer, always a valid question and its good that you have a good answer ready for your clients.
11:42pm • #22

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