I am closing on a house in about 5 weeks. The previous owner's insurance is covering a new roof, siding and gutters due to hail damage that occured while they were living there. The owner is letting me choose the color of the roof and siding. I would like to put a differenct color siding on the peak of the house that marginally more expensive. The rest will be standard. I would have to cover the extra cost myself. Is it a bad idea to spend money on the house before I technically own it? It is in the inspection contingency that the work has to be done before I close.
Sophiedog,
As the saying goes, "Get It In Writing!" There are a multitude of ways for a deal to go south; a sale not to close. You could have your agent (or an attorney) write up a "no close" clause which would require the Seller to refund the extra amount you paid for the siding if the sale did not close (for any reason).
However, asking for a clause like this can also alienate a Seller who has (apparently) been quite helpful in giving you choice in the matter of the roof and siding replacement and obviously wants this sale to close.
You'll have to weigh the money (how substantial a sum are we talking about?) with the possibility of damaging the good will which currently exists between you and the Seller.
Tread lightly - best of luck!
-Dan
Sophie,
I would caution a buyer never to spend money on a house before you own it - NEVER! The decision is ultimately up to you however, if you really want the different color and you can part with the money no problem, go for it. Consider the money lost however. I have seen plenty of "sure thing" transaction fall apart because of this or that. Proceed cautiously.
Cameron Piper
It is your risk as the sale could fall through. If it is a nominal amount and you accept the risk, I would say go ahead. Reasons the sale could fall through are lost job, rising interest rates, etc. You aren't allowed to hire a contractor as that could create a lean on the home, but in this case you are not hiring the contractor, simply paying the difference.
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