While recently assisting a buyer for a home, during the inspection, several large ticket items reared their ugly heads. The roof, the HVAC, and several appliances needed some serious remediation. After a discussion with our Inspector, we determined how we would go back to the Seller to negotiate repairs.
The Listing Agent let me know very quickly that the owner/Investor of this home had not owned the home long enough to file a claim on the roof (which clearly is in need of an entirely new roof). Therefore, the Investor was going to lose money. They offered us $1,000 in lieu of repairs.
Well boo-hoo for this Investor whom we discovered purchased the home with same these same items on their report. The owner even asked our roofer if he could just cover up the old roof with new shingles as it would be less expensive!!!!
Heads up Investors, if you want to flip homes in this market, you need to know what you are doing. Do not assume a buyer is so desperate to buy that they are willing to take the hit for your lack of taking care of business.
The listing agent should have had these discussions early on as not disclosing these things on the Seller Disclosures (knowing full well the issues due to your recent inspection), prior to placing the home on the market.
Thankfully, by standing our ground, the Seller agreed to pay for the items at closing so my client can get them done by their own, reputable contractors. Buyers should not be the ones to get stung by a bad business decision from an Investor.
Buyer beware in this market of flipping! If you are in need of any real estate needs in the North Texas area, contact us at Beam & Branch Realty. We are here to help you navigate this market.
Photo Credit to Duncan Sanchez