Home Buying in 11235>Question Details

Gldfamily, Home Buyer in 11235

What is the seller responsible for, does the seller need to pay for tenting the house for termites? Does the seller need to have the house inspected?

Asked by Gldfamily, 11235 Wed Feb 23, 2011

Who pays for the inspection of the house? Who pays for the appraisal of the house? If problems are found, termites, leaky pipes and loose floorboards in the bathroom, old floor heater that does not work properly, who should repair them?

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As part of your due diligence, having an engineer do a home inspection is your responsibility to pay for. Most banks require a termite inspection in order to give you a mortgage and that's the buyer's responsibility to pay for. If termites are found, the seller usually pays for the treatment and repair but I have seen situations where the buyer has paid for the treatment because the seller was unwilling to do so. The appraisal is paid for by the buyer. If there are issues discovered during the inspection, you can ask the seller to make the repairs. If the seller says no, you can either renegotiate the deal, move forward as is or back out of the deal because you haven't signed the contract yet. In short sales, the owner usually doesn't have the funds to make the repairs or take care of any termite issues so if it's something that has to be done in order to get a mortgage, the buyer may have to pay for the repairs/issues. In foreclosures, the houses are usually sold "as is" and if something needs to be done, the buyer may have to also make the repairs.

Ralph Windschuh
Century 21 Princeton Proprties
631-467-0009
ralph.windschuh@century21.com
2 votes Thank Flag Link Thu Feb 24, 2011
Actually, in theory everything you list here is negotiable between the parties. By local custom, the buyer pays for the inspection, the seller for the repairs. If you're getting a mortgage, the bank sends an appraiser, and the buyer pays for that appraiser, one way or another! ;)

If material defects are found, and if the contract is not yet signed, then they buyer can just walk or come back at a lower price. If the contracts are signed and there is an inspection contingency clause, then that clause governs the response of the seller and the buyer. Often a lower purchase price can be negotiated.

In my opinion it's best for the buyer to get an inspection before any contracts are signed. I've met sellers who will try to pressure the buyer (the buyer being me, in the case I'm thinking of) to sign before the inspection. But some buyers do sign first and then get an inspection while in contract. In that case, I do hope you have a good lawyer who wrote a clause that will protect the buyer's interests!

Karla Harby VP
Rutenberg Realty
kharby@crrnyc.com
1 vote Thank Flag Link Thu Feb 24, 2011
in the state of nevada who is responsible for Title insurance and how much on a 68000 property.?

Nevada who is responsible for closing cost on the same 68000 property?

In Nevada is seller responsible for title insurance and how much on 68000 property?
0 votes Thank Flag Link Sun May 29, 2016
Seller usually pays for termite tenting. Buyer pays for property inspection

Kawain Payne, Realtor
0 votes Thank Flag Link Thu Dec 19, 2013
Seller usually pays for termite tenting. Buyer pays for property inspection

Kawain Payne, Realtor
0 votes Thank Flag Link Thu Dec 19, 2013
The answer: It's all negotiable.

Traditionally speaking, at least in Texas, is that the seller pays for both Realtors - the Listing Agent and the Selling Agent. Because of this, many sellers push as much of the home sale costs to the buyer as possible. But the buyer often pushes the seller as far as they can go. It tends to work out like this:

Brokerage fees - Seller
Commitment for Title - Seller
Survey - Buyer
Buyer Closing Costs - Buyer
Home Warranty Service Plan - Seller
Inspection - Buyer (personally as a Buyer's agent I would never have the seller pay for it as then the inspector works for the seller, which is not in your best interest)
Termite inspections are not always required. But normally it goes hand in hand with the full inspection.

The Appraisal fee is part of the buyer closing costs, as well as the loan origination fee, points. Many buyer's agents ask the seller to pay a % of closing costs. Which is fine, but know that if you also ask for a price reduction and the home owner is not distressed, then it very likely will end the negotiations. There is a breaking point for sellers.

Many of my colleagues will have varying opinions about who pays what. I look at it from this perspective, the seller is already taking a hit since home values have gone down, then they pay 5-7% for broker fees, then 2% closing costs and repairs, then the buyer ALSO wants them to discount the house and pay their closing costs. It doesn't make for a very smooth transaction. Again, it all goes back to the motivation of the seller.

Your Buyer's Agent can help you with this and gain a better understanding about the seller's need (or not need) to sell, and their willingness to budge.

Cathy Bureau
Broker-Owner
Green Home Realty
0 votes Thank Flag Link Mon Jan 30, 2012
An appraiser and a person who does home inspections are to totaly dfferent people. How can you as an agent even make that statement. Anyone can walk around the house and tell you what there opinion is. But that appraiser isnt going to check the electrical, plumbing, foundation, roof , hot water tank, or what ever you have. or the attic or basement. People definatley need to skip the appraisel (what a joke) and get a licenced home inspector
0 votes Thank Flag Link Sun Jan 29, 2012
Hi Gldfamily,

I'm sure this varies from state to state.....but in California all is negotiable. If you asked at the time of the offer (and the seller agreed) to termite clearance, then it's the seller's responsibility to make sure the home is free of termite damage and infestation before the close of escrow, and provide the proof (certificate).

Other than that.....the buyer will pay for their own home inspection (in my area about $400) and appraisal for their loan (this will vary, ask your lender).

If problems are found...you can go to the seller to ask them to repair them. They can say "yes" or "no" but if they refuse, you would have the right to cancel.

I would suggest that you ask these questions of your agent and really talk about it so you understand and there are no surprises.

Karen
0 votes Thank Flag Link Fri May 6, 2011
Generally the buyer pays for the inspections. Once issues are identifed then each item is negotiated with sellers paying for the termintes and any major structural repairs.

We see lots of negotiations in real estate transactions and both parties (sellers/buyers) will normally come to agreement on repairs. Certainly repairs that impact lending should be repaired immediately by the seller such as termites and leaks causing water damage or mold.

Your real estate attorney can structure the contract with the appropriate riders and clauses to protect your interest so speak to him/her.

Best regards,
Bonnie Chernin and David Rogoff
Fillmore Real estate Branch #19
917-593-4068 (cell)
davidrogoff@fillmore.com
0 votes Thank Flag Link Fri May 6, 2011
It is in the buyers best intrest to have a property inspection done. If termites are found it is the sellers responsibilty to remove them.
0 votes Thank Flag Link Thu Feb 24, 2011
you can call me and i will answer any questions ok
thank you Geraldine Soldano
1-646-824-7726
0 votes Thank Flag Link Thu Feb 24, 2011
Gldfamily you can sell the property as is for a lower price or do some repairs. This is a question of time and money. Although all the answers below are informative.Without knowing the whole story I cannot advise. Please contact me as to what your situation is. The conversation is free without obligation. Charles D'Alessandro Fillmore Real Estate 718 253-9600 ext 206. Below.,is a link to my about page check it out!
0 votes Thank Flag Link Thu Feb 24, 2011
Dear Gldfamily:

If the property you are talking about is in Brooklyn, traditionally the homeowner does not do an inspection. The onus is on the buyer if they want to have an inspection done. The buyer does this to protect themselves (caveat emptor), they pay for the inspection and usually do it before they sign a legal contract of sale. this benefits you as a seller because you get the results of the inspection before you contractually obligate your self which puts you in a stronger negotiating position if a problem/issue is found.

Keep in mind that even if the buyers inspector finds an issue, the seller is not obligated to do any repair work. The seller generally has four options...1) do the repair work, 2) do some of the repair work, 3) Give financial consideration to the buyer so they can do the repair work themselves or 4) do nothing and tell the buyers to take it or leave it. If you choose option 4, just be prepared to lose the deal knowing that the next buyer you find will most likely find the same issues so you will probably have to address them sooner or later. The decision the seller makes also depends on how good of an offer the buyers are giving. If the buyers are offering the seller a lot more than anyone else, the seller should be open minded!

With regard to termite, most inspectors are not licensed termite inspector and do not exterminate termites. That is usually a separate inspection which is done after going into contract and is specifically addressed in a contract. the usual verbiage in the contract states that if termites are found the seller has the right to either cancel the contract or exterminate the termites. A bank will not give a mortgage to a house that has an active termite infestation so it has to be done no matter what in order for the buyers to get the mortgage and close. If the sellers do not want to do it the buyers can pay to have it done, but they do not have to. As a seller you do not want to lose a deal over this issue because the next buyers that come in will find the same issue and besides, it is customary and traditional that the seller would remedy this problem so as not to have further damage done to the house!

With regard to the appraisal, the buyer pays for that and it is not done until after the deal is in contract and the buyer submits their formal mortgage application to the bank.

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes Thank Flag Link Thu Feb 24, 2011
If you don't have an agent, do consider the idea as he/she can best guide you--home and termite inspections are paid for by the buyer, if termite activity is found the seller is responsible for treatment; the appraisal is also the buyer's responsibility; all else is really negotiable--without much other information--is the property already priced to reflect the repairs needed....is the property bank owned and being sold as is...etc.
0 votes Thank Flag Link Thu Feb 24, 2011
As a buyer it is your right to have a home inspection done. Usually it's part of the contract whether you agree to one or not. Therefore, the buyer is responsible for the cost. The appraisal is also paid for by the buyer, since they are the one getting a mortgage on the home. If any repair is found during the home inspection, it is then decided by the buyer whether they want to negotiate the seller to fix it or just take care of it at a later time. The seller has the right to say no to the repairs. It's all about negotiating and being fair. Most seller's will do the repairs within reason. Good Luck!

For more buying and selling tips, please visit http://www.RochesterHomeLocator.com

Salafia Sold Team
585-279-8210
http://www.RochesterHomeLocator.com

http://www.FindRochester.com
0 votes Thank Flag Link Thu Feb 24, 2011
Hi, the buyer pays for the inspection and the appraisal. If termites are found, the seller has to treat the home. The rest of it can be worked into the deal. Most sellers sell the homes in AS IS condition meaning loose floorboards, etc are the buyers responsibility. Termites are the only mandatory repair for the seller. Your attorney should work out the rest.

Best,
Catherine Cleland
City Connections Realty
ccleland@ccrny.com
0 votes Thank Flag Link Wed Feb 23, 2011
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