Monte Hartman…, Real Estate Pro in 90292

if you are buying a mild fixer, what to do about the roof?

Asked by Monte Hartman and Brad F. Cole, 90292 Wed Aug 24, 2011

I have a client who is trying to determine if repairing the roof and painting the exterior is worth her time. The property is basically a fixer all around and will most likely attract people that want to redo the entire place. The roof however is in terrible shape and infested with termites. Is a new roof something you would like to have done prior to close or install yourself? Keep in mind that the seller is going to charge more money for the home with a new roof.

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Brad, there's no easy answer here. paint is cheap and quick, roofs are spendier...and take you out of 'mild' fixer.

you don't say how big the roof is or what's on it so i'll guess that you have composition shingles. if the termite company can do adequate repairs to the rafters and fascias you can possibly get away with a re-cover where you just install a new roof covering over the old one(s). the law permits three layers in most jurisdictions.

it depends also to whom you intend to sell to. the VA will DEMAND a sound roof and the FHA will probably want a cert. investors won't care but will beat you up on price for that as we;ll as the other issues they find.

if you want a more specific discussion click through to my contact info and i can guide you more accurately...i own and operate a roofing company.
1 vote Thank Flag Link Wed Aug 24, 2011
I would not only consider exterior paint and roof. Based on total repair/replacements stated in Buyer's Professional Home Inspection Report. What is the condition of: roof, foundation, electrical, plumbing, termite and moisture damage? Buyers should reflect on total repair/replacements.
Questions:
- Is seller making repairs/replacement before close of escrow?
- Is seller crediting buyer before of escrow for repair/replacement?
- Is buyer accepting property in current condition with no credits or repairs from seller?
Buyer have total estimated costs of can make decisions.

Gail Mercedes Cole
EXP Realty
310.853.9933
0 votes Thank Flag Link Tue Jun 25, 2013
Infested with termites...????? I'd worry more about structural soundness and repairs. Those things can do massive damage. More importantly the damage may extend for past were you think the termites are. I don't know your definition of Mild fixer, but it is not the same as mine.
0 votes Thank Flag Link Fri Jun 14, 2013
Bradley,
This does not sound like a mild fixer. With accepted offer you would perform a professional home inspection. What condition is plumbing, foundation, electric, roof and etc. I would take all repair/replacement in consideration. Asking price and then add in estimated total amount for repair/replacements. Does the asking price reflect value of home based on current condition? Will seller make all repair/replacements? Or if buyer purchases home in current condition is the buyers repair/replacement costs justified values in area?

Gail Mercedes Cole
EXP Realty
310.853.9933
0 votes Thank Flag Link Fri Jun 14, 2013
It’s usually an all or nothing deal. Who is going to buy this home and how are you going to market it? It sounds like an investor purchase not a homeowner purchase so sell it “as is”
0 votes Thank Flag Link Sun Sep 25, 2011
Dear Bradley,
In my experience buyers hate to see a roof in need of repair or replacement. Paint they can deal with but many have walked away from a house with a roof issue.
0 votes Thank Flag Link Sat Sep 24, 2011
Back in England these sort of complications happened all the time after the inspection bought attention to the buyer about issues that need to be repaired and often negotiations and repair work were carried out before close of escrow. My second property I sold here in the US had a similar issue in regards to the roof which we had done before close of Escrow because we piggy backed the termite guys with the roofers to cut the cost it saved us around $1500 or so which is better then a kick in the teeth no? Any way Bradley I'm sure you will work it out.
0 votes Thank Flag Link Fri Sep 23, 2011
Brad, I am surprised at your question, a seasoned agent like you should know the answer:))) Hope all is well. If you priced it as a fixer, than sell it as a fixer period.
Web Reference: http://www.endrebarath.com
0 votes Thank Flag Link Fri Sep 23, 2011
When I do a "FIXER" I make an intesive list before we offer.
I don't like surprises.
It amazes me, when the investors on TV are constantly surprised; by the costs and the things that need to be done.
If the roof needs to be done, it should either be budgeted or the house should not be bought.
The price of the house should reflect the need for a roof, as shown by a Roof Inspection.

As far as the question of doing the roof; by definition, a FIXER is supposed to be fixed before the reasale. period.
0 votes Thank Flag Link Wed Aug 24, 2011
Bradley,

Could this be a proverbial "Money Pit?"

It appears that there are several issues here for consideration that may go beyond being a "fixer upper." The roof replacement, the structural roof issue, and the overall termite concern.

You may be dancing with whether or not this is a "tear down" as opposed to a fixer upper....which may alter the options available greatly. The best advice here may be to advise the buyer not to decide anything without a complete evaluation and estimate for the necessary work.

Stay out of the decision making process and let the customer take the lead.

Best regards,

Bill
0 votes Thank Flag Link Wed Aug 24, 2011
Bradley,
If your client intends live in the home vs investment property, the answer is an FHA 203k. We specialize in these loans and they "can be" very simple. The basics are as follows: agree on a sale price "as is" we order an appraisal specifically for 203k. We get two values, finished with repairs and as is.. We can finace the repairs in the loan. The loan requires 3.5% down and can be done in 30 days. For further info please contact : ThePalmerTeam@summitfunding.net

Thank you
Kenny Palmer
0 votes Thank Flag Link Wed Aug 24, 2011
Hi Brad,
I have had clients do it both ways. The termite infestation might be the deciding factor. If the infestation will be an issue with an appraisor, you might consider the roof repair and termite treatment. If you are going after cash buyers, you might go the 'as if' route.
Good luck,
Web Reference: http://ocnorth.com
0 votes Thank Flag Link Wed Aug 24, 2011
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