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We're the sellers, we want a 500 cap on home repairs after the Home Inspection. Our buyers want a 5000 cap. We have a 14 year old custom built home that we're selling in a buyers market (yes,they got a deal). Anyone ever have a buyer demand a 5 grand "allowance" written into the contract for repairs??
Is there a reason for them to think the house needs $5k in repairs, or for you to think that they'd be able to find things that will cost $5k to fix? The challenge will be defining what is and isn't covered by the allowance. For example, if the inspector notes that the hot water heater is 14 years old nearing the end of it's life, can they use the $5k to have the heater replaced, or is that just something that goes with buying a used home? I think you're going to have a tough time keeping them from spending the $5k unless you either have a house that needs nothing, or have a solid clause on what the allowance can be used for.
We're the sellers, we want a 500 cap on home repairs after the Home Inspection. Our buyers want a 5000 cap. We have a 14 year old custom built home that we're selling in a buyers market (yes,they got a deal). Anyone ever have a buyer demand a 5 grand "allowance" written into the contract for repairs??
I would not agree. The vast majority of repairs during a home inspection cost nowhere near $5K.
We're the sellers, we want a 500 cap on home repairs after the Home Inspection. Our buyers want a 5000 cap. We have a 14 year old custom built home that we're selling in a buyers market (yes,they got a deal). Anyone ever have a buyer demand a 5 grand "allowance" written into the contract for repairs??
I did prepurchase home inspections for 20 years.....over 5000 home inspections.....the bottom line is age does not constitue an item that needs to be replaced by the seller.........while a hot water heater may be 14 years old and nearing the end of its average economic service life, however, it has to be leaking or malfunctioning in some matter to require to the seller to repair/replace it.....a roof thats 20 years old may be nearing the end of its average economic service life but if its not leaking the seller has no obligations to do anything !!! Theres nothing in an agreement of sale that says all appliances and major systems in the home have to be new.....just that they are in operational condition !!! That being said a buyer can ask for anything including a $5000 repair cap.....its up to your AGENT to set them straight that they are asking for too much and they need to start looking elsewhere if they think it is going to happen. Your agent represents YOU.....not the buyer !!!
Our lawyer is not going to accept the 5 grand counter on our behalf..if it kills the deal so be it. It's basically a back door attempt to knock 5 grand off the price of our house. We'll be mired in attorney review for another week at least. Thanks for your replies..you validated my suspicions about our prospective buyers.
Our lawyer is not going to accept the 5 grand counter on our behalf..if it kills the deal so be it. It's basically a back door attempt to knock 5 grand off the price of our house. We'll be mired in attorney review for another week at least. Thanks for your replies..you validated my suspicions about our prospective buyers.
My opinion.. I wouldn't cancel a deal over $5k.
Do you really want to go back on the market?
How long were you on to begin with?
Are you still active during attorney review or not active?
Yes, a buyer can say that such & such is old according to their inspection; you then either say yes or say no, or you meet in the middle.
If it was me, I wouldn't kill this deal because you might not get another buyer.
We gave a buyer $5K to fix something (something we didn't really think needed fixing, but it seemed to be important to them). The buyers were already sweating thru the leaking oil tank removal without backing out, so it seemed only fair.
Yes, a buyer can say that such & such is old according to their inspection; you then either say yes or say no, or you meet in the middle.
I did home inspections for 20 years......over 5000 inspections......Age does not constitute a defective system......if you have a 30 year old furnace it may be at the end of its economic life span but if its still operating and doing its job as intended then the seller is under no obligation to give the buyer a new furnace. Something must be defective or not operating as originally intended to require the seller to make repairs or replacements......thats the bottom line. The buyer can ask for the moon but hes not entitled to it. Read your agreement of sale.....most specifically state that the seller warrants that all major systems within the home are in overall operation condition........not new.......just operational !!! Additionally, legally if the cap is $5000 then you have no right to back out of the deal if the repairs come to $4900.....you have to continue with the transaction....with a $500 cap you have the right to back out of the transaction if you feel the cost of repairs are excessive !!! Finally.....if when listing your home you specifically list it "AS IS" the buyer can have a home inspection but you have NO obligation to pay for ANY repairs as a result of the inspection.....you can also require your agent not to get a copy.....this fulfills your obligation to allow the buyer to have their inspection and be completely informed about the house without your having to be informed of any "flaws" that you would be requiared to future buyers should your current buyer decide not to buy based upon home inspection findings.
I did home inspections for 20 years......over 5000 inspections......Age does not constitute a defective system......if you have a 30 year old furnace it may be at the end of its economic life span but if its still operating and doing its job as intended then the seller is under no obligation to give the buyer a new furnace. Something must be defective or not operating as originally intended to require the seller to make repairs or replacements......thats the bottom line. The buyer can ask for the moon but hes not entitled to it. Read your agreement of sale.....most specifically state that the seller warrants that all major systems within the home are in overall operation condition........not new.......just operational !!! Additionally, legally if the cap is $5000 then you have no right to back out of the deal if the repairs come to $4900.....you have to continue with the transaction....with a $500 cap you have the right to back out of the transaction if you feel the cost of repairs are excessive !!!
Sorry, I was not disagreeing with you.
I was saying that buyers use it to get things replaced or to get the price lowered.
A seller doesn't have to do these things but in this market I wouldn't lose my sale over it.
As for the OP, she's in a buyers market and is pretty much ready to kill the sale due to a $5k cap. I would try to meet in the middle on the amount; which I think ours was $3k when we sold.
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). Anyone ever have a buyer demand a 5 grand "allowance" written into the contract for repairs??
. Thanks for your replies..you validated my suspicions about our prospective buyers.
