Home Buying in 91301>Question Details

Rookie Buyer, Home Buyer in 91301

If during a short sale I am paying the market price for the property. And during the home inspection I discover repairs are needed should seller pay?

Asked by Rookie Buyer, 91301 Wed Dec 28, 2011

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Yes, short sales are sold as is. However, if there are serious problems with the home that could not be seen with the inspection you can request that the bank give you a credit for the repairs. For example, if all of a sudden the air conditioning is not working and it needs to be replaced, you can submit a request for a credit. You will need to get two bids to submit with your request and ask the bank to pay for 60%-70% of the repair. When the bank sees that you are trying to work with them and are willing to absorb part of the expense yourself, they are much more likely to issue a credit. We have found that more than 50% of the time we have been able to get the buyer a credit.
0 votes Thank Flag Link Tue Sep 10, 2013
Most of the time, in a short sale, the seller will sell the property AS IS, meaning that they will not fix anything in disrepair. I know it is an expense, but if you are really interested in a property, I always recommend my clients doing a home inspection before the offer is submitted on a short sale, so that they know how much they need to budget for.
0 votes Thank Flag Link Sun Jul 21, 2013
As a buyer, you have the right to ask the seller to make repairs, but the seller is not required to do any repairs. When you are making an offer on a short sale, you should consider what you'd offer "as is" because if the seller is doing a short sale, they do not have the funds to make repairs. Your agent should be able to guide you with making a fair offer. If you are not satisfied with the findings during your inspection time, you can always cancel.
0 votes Thank Flag Link Mon Feb 13, 2012
Rookie,
My recommendation is always to do an inspection before you have your offer submitted to the bank. That way, you know you are submitting a 'fair' offer that does not need further negotiation.

In most cases, though not all, the sellers of a short sale property are selling the home 'as is' because finances are so tight that they can't afford to make fixes to the home or offer you money to do so.

I would talk with your buyers agent to see what he/she suggests in your situation.
0 votes Thank Flag Link Thu Dec 29, 2011
Unfortunately, in a lot of cases the seller is not in a position to pay for the repairs and the home is sold in "As Is" condition. Contact the listing agent and express your concerns. Maybe he can contact the bank to see if they are willing to make the repairs.

Good luck
Web Reference: http://ninaharrishomes.com
0 votes Thank Flag Link Thu Dec 29, 2011
While it is not common - if the repairs are significant, the bank may be willing to lower the price. Present the information with estimates to the listing agent and ask them to pass it on to the bank. It is worth a try if this is a deal breaker for you.
0 votes Thank Flag Link Wed Dec 28, 2011
Probably not. If the home is being short sale, it usually is not in tip top shape.
You have to figure out if the price justifies the repairs needed to be done.
Good Luck
0 votes Thank Flag Link Wed Dec 28, 2011
Hi Rookie Buyer,

You can do a Request For Repairs but most likely it will be denied. Since the seller is doing a short sale, they most likely don't have the money to do the repairs and the short sale lender(s) most likely will not approve the repairs (meaning, they won't pay for them).

Good luck.

Shanna Rogers
SR Realty
www,.RealtyBySR.com
0 votes Thank Flag Link Wed Dec 28, 2011
Realistically, the seller probably doesn't have the money to make the repairs.

Check with your Realtor on how to handle that situation.

By the way, have you confirmed that you're really paying "market price"? Usually, people go after short sales because they're trying to get a bargain. I hope your Realtor ran comps on the property to make sure you were getting a good value.

Hope that helps.
0 votes Thank Flag Link Wed Dec 28, 2011
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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