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My home just went on the market.
Part of the services my listing agent provides is paying for inspection reports. He had explained that this way possible issues are known upfront and can help with negotiation.
I just got termite and retro report findings.
The retro report estimate was about $1200 for an automatic gas shutoff valve , smoke detectors installed and some other various things.
Termite estimate looks like it's about $2500 and it said there was evidence of subterranean termites and also a fungus condition. Looks like the $2500 would be to treat these areas.
The house is older, built in the 1950s so I'm guessing the termite stuff is pretty common?
Is it common for the seller to pay for the retro fit stuff and the termite work? I'm guessing both of these things are up to negotiation. Market seems strong and I feel like the home is being offered at a good list price, so I don't really want to pay for this stuff if I don't have to.
Also does this work get done during escrow? Or before close of escrow.
I was also going to ask my listing agent about this, but wanted to hear some different thoughts as well.
A general home inspection report was also done and kind of worried some might make an issue at closing on some of the stuff. I asked agent if buyers are generally asking for discounts these days and he said it depends, but the important thing is to get a lot of interest and offers then it puts us in a stronger position.
The retro report is something that sounds like it is unique to CA.
For your own safety I would install the gas valve and smoke detectors immediately. I suspect most buyers would want the same given those are clear safety issues. If I was a buyer, I would want you to be responsible for the termite related items also.
Depending on the loan type a buyer might not be able to get financing with any of the items you mentioned. Best to get this all done asap.
In my area (fairly hot market) - it's pretty customary for buyers to ask for the moon. You can cut them off at the pass by posting everything you already have (termite report, inspection report, etc) right in the agent's portion of the listing & adding a line to the agent-to-agent field in MLS directing buyers to review those docs *before* they write an offer & a note that "pricing reflects condition".. They'll still ask for stuff, but they can't say they "didn't know about xxx" if you disclosed everything before the offer was written. When they ask, you say no.
I'd personally get any safety items & pest items corrected before I even listed the property. Buyers expect safe/clean/habitable/financeable. They're not going to accept active termites fungus & scary natural gas stuff. Get it done asap so it doesn't slow down your closing.
Since you know all these things, don't you now have to disclose them to buyers?
Also consider this:
1. The property has several items that needs to be fixed that seller is going to get it fixed and is going to pay for it.
or,
2. The property had several things that needed to be fixed and the seller already had them corrected.
If your buyers are like me, number one says lazy owner didn't take care of the place or fix things until they had to, what else is wrong with this dump Number two says owner doing maintenance, on top of things, old home but probably maintained.
Depending on the type financing buyer is using, it may be required to fix items in order to close. Fha and va loans for example will require termites to be treated.
Looks like your retro and termite work are affordable. You would do yourself a big favor by taking care of these issues now.
Yeah i was a little worried about the termite report . Some years ago I almost bought a home and termite inspection cost came up as $13,000 so it freaked me out enough not to buy the home .
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