It really depends on what the bank says. Scott gives you the "what is typical" and you should use this to fight for what you feel is right. However, I have worked with many banks who don't care what is typical. They do what they want and can you do it their way or move on to something else. At the end of the day, the answer to your question is, whatever the bank demands. Keep in mind to that you do owe fiduciary responsibilities to the bank here.
The buyer would be responsible unless the pruchase ageement says otherwise. I try to avoid FHA loans on short sales and foreclosures because of issues like these but that's not always possible. If I was the listing agent I might just pay for the dewinterizing to get the deal done but if the buyer's lender requires it it's the buyer's issue. The buyer agreed to the work orders, it's a work order.
Michael Doyle Realtor
To reduce ambiguity, the responsibility of dewinterization should have been spelled out in the contract or purchase agreement. By adding a clause that the seller is responsible for having all utiliites turned on the the home prior to the inspection and/or closing, responsibility would be clearly spelled out for all parties. If the seller has an as-is clause and there is no other clause addressing dewinterization, the buyer could be expected to assume these costs. Review your purchase agreement with your agent/broker to resolve.
Hope this information is helpful!
I don't know where you are or what kind of contracts you use, but HERE the answers to this question are in the contract. And, a listing agent is not party to the contract. So, if the listing agent or someone else is responsible for this, then it would be pursuant to another agreement. Read the agreements. If it is truly not spelled out in the contract that there must be an FHA appraisal and utilities must be in service (typically the sellers responsibility), then it becomes a negotiating point, and the seller is not in default by refusing - of course, they probably won't get the sale completed if the buyer can't get the financing... but it could be the buyers that are in default if the contract didn't require it.
The key is disclose everything ahead of time, cover your butt and watch over everything so the appraisal goes smoothly and teh sale closes on time and without problems. good luck with your sale