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This is an interesting situation that I bet a lot of you don't see very often:
I'm selling my home that I've lived in for the past 20 years (home was built in '67). I had an acceptable offer on my property after less than two days on the market. We've since found and made an offer on a beautiful 2006 home. Everything looks like it's teed up for both closings on the 28th of May.
So far so good.
The buyer's appraiser visited my house this past Friday and he said that this was an FHA loan. I hadn't known that up until that point. Anyway, my house is in great shape, but my detached garage has some wear along the sidewalk next to the building itself. Some might consider that wear "peeling paint". I'm really not sure what the appraiser wrote about it as I haven't seen the report yet.
I find myself almost hoping that the "peeling paint" issue comes up on his appraisal as a "must fix" item. If the appraisal report and underwriting requires that improvements be made to the property in order to secure financing, I'm not sure that I'm going to do anything. In fact, I'll probably use it as a reason to back out of having to sell my property. Subsequently, our sale-contingency clause will kick in on our offer on the new house and that deal will be fall through too.
I don't think I need anything solved, I just wanted to share that sometimes sellers get cold feet too. I think at this point it's up to fate. If the appraisal is clear, I'll be happy to move. If it comes back with an issue, I'm going to let everything fall through.
Most FHA appraisal issues are related to safety concerns. Peeling paint in a pre-'78 home is a possible lead paint issue. If your concern is about sidewalk wear, it's unlikely to be an issue unless the sidewalk is unsafe.
Wait until you get the report; you might be pleasantly surprised.
All I had to do with an FHA buyer was install a couple of GFCI outlets and replace a cracked shower tile. Didn't take me more than a half hour to do it myself.
@RJRCM
You're right. I'm the OP, and I'm kind of hoping for something that will just let me cancel the sale of my home. Fear of committment of a new purchase.
@manderly6
I suppose it would be an option to let the buyer pay for and effect the repairs themselves. Then again, I might not even allow them to do that just so that I can get out of the sale.
Be aware that you have executed a contract which means the listing agent did their job. Their job is not to "sell" the home, but to bring a ready, willing, and able buyer to contract the home. They did, and you'll probably owe the commission even if you decide not to sell.
Be aware that you have executed a contract which means the listing agent did their job. Their job is not to "sell" the home, but to bring a ready, willing, and able buyer to contract the home. They did, and you'll probably owe the commission even if you decide not to sell.
You're right, they brought me a buyer and I agreed to sell...
But I'm not deciding NOT to sell, I'm deciding not to fix something required by FHA financing. If the sale falls through because of that, I am not responsible because I never agreed to satisfy every condition of the buyer's financing.
I agreed (and still agree) to sell my house with the terms that are spelled out in my contract. My contract does not say that I HAVE to fix everything (or anything for that matter) found by an FHA appraiser. In fact, it says nothing about FHA at all.
That being the case, I will have fulfilled my end of the contract, and my house would remain on the market for my real estate agent to bring me additional offers (which I am not obliged to accept) until my listing expires.
But I'm getting ahead of myself. As an earlier poster suggested, the report may come back clean, and then I'll move.
I wonder if the buyers agreed to pay for any repairs and you refused if they could make an argument you negotiated in bad faith?
That's a good point. I suppose that if they paid for the repairs that might be required by the FHA financing, I'd go along with that.
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