Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I put this on the RE forum, but after the fact, I think this might have been the right forum.
My son is buying a home around Phillipsburg, in NW NJ. The homw was listed in the $160's and he offered $150K. Then we noticed some termite damage to the tune of approximately 70 feet of sill plate, some rim joist, and about 12 floor joists. The sellers are having the damage repaired- replacing the sill plate and rim joist, and adding sister floor joists. They also had the home treated.
He's going for an FHA mortgage, so I hope they do a good inspection.
I'm wondering if my son shouldn't offer a lower price due to the termite damage, as I would think the resale down the road will be affected, even though the damage is repaired. I know I would be a little gun shy if I walked in a home with termite damage, as you never know how much more there was that wasn't fixed. Can he request another apprasal?
For FHA appraisals it is highly unlikely another appraisal will be ordered. The case number for appraisal is assigned and stays with the property for six months. The value should/may have reflected the repair of the termite damage.
As long as the contractors certify that the terminates are gone and steps are taken to prevent any further infestation the situation should NOT call for a reduced price now or in the future.
When the sill is damaged like that the cause is almost always related to some poor maintenance of the landscaping and grading. You son should address that ASAP. Termicide and lack of moisture is not a "one shot" thing, but should be done regularly in areas where terminates have been active. If has those records there should be no questions down the road.
I put this on the RE forum, but after the fact, I think this might have been the right forum.
My son is buying a home around Phillipsburg, in NW NJ. The homw was listed in the $160's and he offered $150K. Then we noticed some termite damage to the tune of approximately 70 feet of sill plate, some rim joist, and about 12 floor joists. The sellers are having the damage repaired- replacing the sill plate and rim joist, and adding sister floor joists. They also had the home treated.
He's going for an FHA mortgage, so I hope they do a good inspection.
I'm wondering if my son shouldn't offer a lower price due to the termite damage, as I would think the resale down the road will be affected, even though the damage is repaired. I know I would be a little gun shy if I walked in a home with termite damage, as you never know how much more there was that wasn't fixed. Can he request another apprasal?
Thank you,....marc
Some clarification please...
You say "he offered $150k." Was that offer accepted? In writing?
When you say you noticed some termite damage, does that mean you had an inspector in, pursuant to the offer clause that allows for such?
Was the seller requested to do this damage repair?
I don't see how & why you would feel you should offer a lower price. He found a house he wants to buy, and agreed on a price. Some damage was found, and that damage is being repaired. The sellers did as you requested, correcting the problem you found. It's a little unfair to say that now, after the negotiation of that repair is complete, in addition to repairing the problem, you want them to lower the price too. It would be a desperate seller indeed who would even contemplate accepting such a request.
Since you are in NJ, his contract was probably reviewed by a real estate attorney. Your son should ask his attorney as well as his real estate agent about this. See if either of them think that's a reasonable expectation.
Last edited by Bill Keegan; 12-20-2008 at 08:07 AM..
Reason: typos
1. You say "he offered $150k." Was that offer accepted? In writing?
Ans: Yes
2. When you say you noticed some termite damage, does that mean you had an inspector in, pursuant to the offer clause that allows for such?
Ans: The termite damage was very obvious,and an inspector was not needed.
3. Was the seller requested to do this damage repair?
Ans: Yes
4. I don't see how & why you would feel you should offer a lower price. He found a house he wants to buy, and agreed on a price. Some damage was found, and that damage is being repaired. The sellers did as you requested, correcting the problem you found. It's a little unfair to say that now, after the negotiation of that repair is complete, in addition to repairing the problem, you want them to lower the price too. It would be a desperate seller indeed who would even contemplate accepting such a request.
Since you are in NJ, his contract was probably reviewed by a real estate attorney. Your son should ask his attorney as well as his real estate agent about this. See if either of them think that's a reasonable expectation.
Ans: I was only asking, as personally I would have reservations purchasing a home with termite damage, even if it was repaired, but that's just me. This is exactly why I "was askeimg" for some feeback from others here, hoping they have the experience that I lack.
Marc,
I think you need to look at your state's disclosure statements. Out here we don't typically have to disclose repair work. There are a few exceptions.
So if your state works like ours, a new buyer would not know that termite damage had been repaired because it was fixed. It is no longer a defect. No longer a defect means no disclosure.
If the termite damage was obvious and didn't need an inspector to see it, then that should have been taken into account when the offer was made. If the buyer feels that there is a "psychological" depreciation for having a house that had termite damage in the past, that should have been in the original offer.
I've sold three homes this year that needed some termite damage repairs, and all three closed with the buyers. Requested repairs and it was done.
Why would you balk at buying a home with repaired termite damage?
I guess I would balk due to a psychological fixation of termite damage; no other reason.
marc
Heh...I thought maybe you had a bad experience or knew someone that had.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
another appraisal
