Home Buyers and Sellers often ask which home repairs a Seller is required to make and when do the repairs have to be completed? As happens often in real estate, there is not an answer that applies to all real estate transactions.
It depends on what is negotiated and whether there is financing involved. If the Appraiser (not the Inspector) requires something to be repaired, that is not negotiable – it must be done and approved prior to closing.
If the financing is VA or FHA, there is less flexibility than if the financing is Conventional. If the Buyer is paying cash, there is no Lender to satisfy.
Otherwise, the repairs are negotiated several times throughout the transaction. If the amount or complexity of the repairs overwhelm the Buyer, the Seller may need to spend above the amount anticipated in order to hold a transaction together.
Conversely, if the Buyer got a great deal on a property, he or she might want to be conscious about keeping their repair requests low and make remaining repairs on their own after closing.
It’s the time of year that inspectors, repairmen and all real estate professionals are completely booked. My preferred inspectors are booked out two weeks, as is my photographer. My repairman is working 16-hour days, and so am I.
For this reason, we are getting more creative about repairs and when they are done. It is okay to complete repairs after closing (unless it is an Appraisal Requirement), but get everything that you negotiate IN WRITING.
Which home repairs is a Seller required to make?
In the state of Oklahoma, we negotiate a repair cap before the Buyer ever does inspections. If the requested repairs exceed the agreed upon cap, either party may be released from the contract and earnest money is returned to the Buyer. However, this is when level-headed Realtors work together to keep a contract together. Some re-negotiation may occur after inspections, and everyone needs to remain focused on the bigger picture.
I represent both Buyers and Sellers in midtown Tulsa real estate transactions. If you would like an experienced Realtor to help you negotiate repairs, please give me a call! 918-852-5036
Content written and published by Lori Cain.