Home repairs and disclosures are something every home Seller needs to discuss with their Realtor before marketing their home for sale, because eventually they will be negotiating needed home repairs. If you know that you have wood rot around your windows, for example, repair them before you market your home for sale.
My colleagues and I recorded a video titled “Inspections and Repairs, What Should Buyers and Sellers Expect?.” In this video, Rich Cederberg, Jeff Dowler, Bryan Robertson and I discuss types of inspections typically done, how repairs are negotiated and disclosures.
It’s important to note that repairs are handled differently in each state, and this blog post addresses how repairs are handled in the Oklahoma Real Estate Contract.
Our disclosure which must be filled out prior to listing by the Seller asks if a variety of items are in working order. Additionally, it asks whether the property has ever been damaged by flood, drainage or grading problems. There are questions about water seepage, foundation repairs, termite damage, encroachments affecting the property and more. The Seller is to answer these questions to the best of their ability and provide explanations of items that may have been damaged and repaired.
The Buyer will request a dollar amount in their offer that represents a cap of what the Seller will be responsible for in repairs. This amount is based upon information discovered in the disclosure – plus what the Buyers and their Realtor may have observed when viewing the property and conducting their due-dilligence. This repair cap is agreed upon, along with other components of the offer BEFORE the Buyer has the opportunity to conduct inspections.
Home Repairs and Disclosures – negotiating home repairs with the Seller
If the result of inspections alarms the home Buyer and/or if the estimate for repairs exceed the cap agreed upon in the contract, either party may cancel the contract. This is a critical time in the transaction for level heads to prevail and compromises be made.
In one recent transaction, my Sellers’ home had live termites and a SIGNIFICANT amount of wood rot. The repair estimate FAR EXCEEDED the repair cap. Thankfully, our Buyers were not scared away and asked for all repairs to be made.
Had my Sellers not been able to keep this transaction together, they would have to MODIFY their disclosure to reflect the findings of the inspection – whether the repairs had been made or not. In this case, they would have to make these repairs for any future Buyer, so it made sense to forget the repair cap and make all requested repairs.
Appraisers may also note defects and require repairs to be made prior to closing.
In summary, it’s advisable for home Sellers to prepare their home for sale and make known needed repairs BEFORE the home is marketed and inspected. It doesn’t matter whether you have beautiful hardwood floors or a stunning granite kitchen island if your windows are rotting out due to lack of maintenance.
Some Realtors encourage a pre-inspection of the property to help Sellers identify potential problems, and I’m a proponent of that action in some cases.
If you are interested in selling your Tulsa home for sale, please learn more about our listing services and do please give me a call! 918-852-5036
Content written and published by Lori Cain.
I found this website that deals with home owner expectations and 10 things you should not do when remodeling your home. It saved me from making a few easy mistakes and wanted to share this with you and your readers. http://freshome.com/2013/07/09/10-things-not-to-do-when-remodeling-your-home/