Don't Pay For Termite Repairs on a Menlo Park Home In Escrow

By
Real Estate Agent with eXp Realty of California Silicon Valley Probate, Trust, and Investment Sales B.R.E. 01191194
https://activerain.com/droplet/47JJ

Selling a home in menlo park

As many of my blog followers know I sell a lot of Menlo Park homes in trust and probate. The owners were often very old, as are the homes, and frequently in need of repair. While it is often a good idea to keep repairs at a minimum in order to decrease the liability to the estate, sometimes it is necessary in order to allow buyers to be able buy and move into a home safely, or in order to increase the value exponentially.

I am currently sellling a Menlo Park home that needed some major bathroom repairs since it was unclear an adult could stand on the bathroom floor without falling through to the crawl space. No amount of staging was going to fix that problem. The second bathroom in this Menlo Park home was not much better.

The seller of this Menlo Park home decided to redo both bathrooms and Preferred Termite company was generous enough to allow the $15,000 payment through escrow. 

Selling a Menlo Park home

The house went on the market generating plenty of interest and multiple offers. The seller of this Menlo Park home chose a nice couple who were pre-approved for a loan and felt comfortable enough with the reports and repairs done by the seller that they waived the property condition contingency, knowing that there was still more work to be done on the termite report. They could use the new bathrooms and felt the rest of the termite work and replacing the roof could happen over time.

Unfortunately their lender did not agree. There was no problem with the appraisal or underwriting. However, one day before we were due to close the funder looked at the seller's HUD1 (final closing statement) and saw that there was a $15,000 payment going to Preferred Termite. They said that all work called for on the termite report, including providing more access to the crawl space by making a new opening, had to be done before funding the loan.

Lesson learned. Fortunately neither the seller of the Menlo Park home or the buyer were trying to meet a deadline so the buyer switched lenders, the Menlo Park home seller will pay the termite company out of escrow so it is not on the closing statement and we will close in 2-3 weeks.

So remember, when selling a Menlo Park home do not put payments for inspections or termite repairs in escrow or the buyer's lender may ask to see them and muck up the sale. 

If you have any questions about selling a home in Menlo Park please fell free to contact me.

Marcy Moyer

Keller Williams Realty Palo Alto

www.marcymoyer.com

marcy@marcymoyer.com

Cal BRE 01191194

650-619-9285

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Marcy Moyer eXp Realty of California  Specializing in Probate and Trust Sales, and Rental Investment Properties

 

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Bryan Robertson
Los Altos, CA

I'd like to see some sort of law stating lenders can't deny a loan when such payments are listed.  It's one thing to be paying someone to hide money but service providers are there for a reason.  Good call.

Dec 05, 2013 02:26 AM #1
Rainmaker
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Marcy Moyer
eXp Realty of California Silicon Valley Probate, Trust, and Investment Sales - Mountain View, CA
Probate, Trust, and Investment Specialist

Thakns Bryan!

Dec 05, 2013 11:43 AM #2
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Marcy Moyer

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