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.
- 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
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
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.
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.
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
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.