Home Selling in San Ramon>Question Details

beaufortgirl, Both Buyer and Seller in Beaufort, SC

Can a Buyer demand repairs on a Short Sale even though they have signed and "As Is" Addendum they had to sign from the bank?

Asked by beaufortgirl, Beaufort, SC Wed Feb 27, 2013

Help the community by answering this question:


My response to your buyer, if I was your agent, would be: My client is losing their home. Your requests are insensitive and lack awareness of how a short sale works. My client is getting nothing from this sale and will be spending nothing to make any repairs, changes or upgrades.

I hope that you are being represented by a competent Realtor.
1 vote Thank Flag Link Thu Feb 28, 2013
Simply put, yes. The buyer always has the option to request any repairs; even on an As-Is sale. It is the sellers option to grant those repair requests, negotiate, or deny them altogether.
1 vote Thank Flag Link Thu Feb 28, 2013
Let me please clarify. I am not demanding anything. I am the seller. The Buyer is demanding the things be repaired. Many are very nit picky type of things like a loose door handle needs replaced. His inspector could not check the A/C so he wants me to pay for the A/C to be checked. He is an investor. I say "demanding" because he is saying if I do not pay for all repairs to be done, he walks. He does not care that he signed the "As is" agreement. I understand the bank will not pay for this and I do not expect them to or have I asked them to. I've been going thru the process of the Short Sale since July. I am one of thousands of victims of the economy and the falling real estate market. I purchased my home at the height of real estate in 2005. I only have one loan, not a second and it was a fixed not an ARM. I even put a large amount of money down on the house that the bank now gets to keep. I've paid thousands in PMI insurance. Some of you act like I have been irresponsible. I've owned 6 houses in my lifetime. Never late on a payment, perfect credit...until now.
1 vote Thank Flag Link Thu Feb 28, 2013
The investor is trying to squeeze and push hard. Your agent should go to the next offer, in case they had a back up offer. If he is pushing hard now, what guarantee that he will close? You and the bank have already lost money in this scenario and cannot be expected to pay for repairs !! Let him walk, he sounds like trouble to me.
Flag Thu Feb 28, 2013
I you were the lender and you were losing a whole bunch of money on this loan, what would make you decide to spend even more money to repair the house to save a deal that is already costing you a bundle?

Let me put it another way…the lender is forgiving thousands of dollars of debt – forgetting about collecting money that they lent out – in order for this sale to go through. Now you want to “demand” or “request” that they lose even more because of ???

If you walk away, can they sell the house to someone else for the same price in its present condition? If so, why would they make repairs for you? If the problem is so egregious that no other buyer in their right mind is likely to buy the house, repairs MAY be a possibility.

Repairs are a long shot on a short sale.
1 vote Thank Flag Link Wed Feb 27, 2013
No but they may be able to cancel the contract and lose their earnest money. Have the buyer consult with their Realtor on this question.
0 votes Thank Flag Link Wed May 1, 2013
Congratulations on your success!
0 votes Thank Flag Link Wed May 1, 2013
Short Sale CLOSED!!!! thanks for the support!
0 votes Thank Flag Link Mon Apr 22, 2013
The buyer can request any repairs and the seller can decide to accept, counter or deny.



Jason K. Zaitz
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0 votes Thank Flag Link Mon Apr 22, 2013
You are welcome Frustrated,

I'm glad to hear that you worked it out. The end result will benefit you. A short sale is much easier to get ahead of in the future than a foreclosure.

And thanks for giving us the update. We answer questions all the time here on Trulia, but rarely does the person come back to give us an update. We really appreciate that!

Best of luck to you.
0 votes Thank Flag Link Tue Mar 5, 2013
Update, the owners realtor, my realtor and myself have decided to split the cost of the repairs. All repairs are probably going to cost under $1500. It in unbelievable to me that the buyer isn't doing anything. He is under stress because of his job. He does not know stress until he tries to sell a house in a Short Sale!! Thank you Linda for recognizing that I am a responsible person.
0 votes Thank Flag Link Tue Mar 5, 2013
Dear Frustrated with BofA,

First of all, I apologize for what you are going through. I work with distressed properties all day long. In fact, it is 95% of my business. I understand that there are many, many home owners that are victims in this madness through no fault of their own. And I too, am tired of hearing about the greedy buyers and they deserve what they get. But, you are not going to change how some people perceive what you are going through.

The fact that you are even attempting a short sale as opposed to walking away tells me that you are a responsible person and at least trying to do the right thing.

Now, in answer to your question.....it sounds to me like the would-be buyer is being extremely unreasonable. However, I have had great success in getting the banks to make certain repairs. In the state of Wisconsin, you cannot sell a home with a leaky roof or non working furnace very easily because, unless it's a cash deal, no lender is going to allow that to go through. However, door handles? please. Did he not know that when he looked at the home? Sounds like a very unreasonable person, so you the ball is in your court. What is your agent saying? Does he or she think you have a shot at getting the bank to assist? I'm thinking, since you are in CA, that AC would be important, albeit, not necessary. Do you have any cash to do these repairs?

Best of luck to you.
0 votes Thank Flag Link Tue Mar 5, 2013
Of course they can. There is no shortage of Jellybean on the planet. adding a few as short sale buyers is only natural.

The seller can just as easily say, "Next" and contact the buyer in the wings. The new buyer can submit a modified price to address the repair.

Of course you fail to indicate the type of repair DEMANDED. If they need a cap on the vent pipe,,and upon completion grant all contingencies satisfied, that would be granted.

Demanding, however, sets the stage for gaming and lining up options. A wise selling agent ALWAYS have options. The likely outcome will be a price adjustment, no repair. The success will depend, not on the buyer or seller but that unidentified desk jockey managing this non-performing asset. And you can be sure, they don't care what the outcome is.
0 votes Thank Flag Link Tue Mar 5, 2013
They can try; but honestly but your response can be, "hat part of AS-IS did you not understand?"

You're under no obligation to do anything, though the buyer might walk. The question you as the Seller should be considering is whether they have enough skin in the game to make this unlikely. If they will lose several thousand dollars then it seems less likely if they haven't put any money at risk then you need to decide whether you're going to capitulate or not. Speak wiht you broker and if you're using one (and you should be ) your attorney to understand what the contractual obligations are for both you and the buyer.
0 votes Thank Flag Link Tue Mar 5, 2013
The best would be to negotiate with the buyer and have some repairs done even if minimal.i think the buyer knows that for short sale you are really looking forward to sell and they want to take advantage and get the best possible deal they can.
0 votes Thank Flag Link Tue Mar 5, 2013
What does your realtor say?
At what stage of the short sale process are you in?
Is the short sale approved yet by your lender(s)?
And do you have a back up buyer?
Has the buyer released all his contingencies?

Some short sale sellers, in the interest of keeping the deal moving forward, may acquiesce to reasonable requests. I had one such seller who had the furnace fixed at his expense, primarily because the buyer's lender wouldn't approve the buyer's loan otherwise.

But some buyers may be too demanding, or do not know what to expect, or were not properly apprised of what to expect in a short sale.

If you refuse to do the repairs the buyer wants done, then you may have the option to cancel if the buyer doesn't meet the timelines per the contract.

Since the market is heating up, you may be better served to look for another buyer who would be more cooperative.
0 votes Thank Flag Link Thu Feb 28, 2013
I like John's answer below.

The buyer can demand, or ask for, anything they want - regardless of what they signed. I bought a foreclosure - and "asked" the lender to fix numerous things. They mostly rejected everything - but you never know for 100% sure until you ask.

The bigger issue here is really your best interests. You are trying to sell the property short - in order to mitigate the damage to your credit and avoid a foreclosure. So, if you, and your real estate agent, are both confident that it's priced right (considering both the condition, and making sure it's in the price range of the bank will ultimately accept) and will sell regardless - then you can choose to not make the repairs and hope another buyer comes along.

Your choices are basically:

1. Tell the investor/buyer you aren't fixing anything. You might call their bluff, and they may proceed with buying the home anyway - but you risk them walking away.

2. Give in and repair everything, begrudgingly - knowing that at least in the end you'll get the outcome you wanted.

3. Try to compromise with them and fix a few minor things - and tell them they are on their own for the rest per the as-is agreement they signed.

The buyer can "ask" or in this case, demand, anything - regardless of what they signed. You don't have to agree to fix anything, but the buyer doesn't have to ultimately buy it either.

Hope this helps!
0 votes Thank Flag Link Thu Feb 28, 2013
Ok, regardless of the type of sale repairs are at the Sellers discretion. Now in your particular situation, if this Buyer has removed their contingencies and walk, they forfeit their deposit. Your agent should be bringing this is up to the Buyers agent in the effect that, your Buyer can walk, but his deposit stays with the Seller. Now if they have not removed contingencies then yeah they can walk and retain their deposit, but in this current market though it's highly likely you can get another offer in and probably at a higher price then you did in July. Don't let this investor try to bully you into anything.

Good luck with your transaction, I hope everything works out for you.
0 votes Thank Flag Link Thu Feb 28, 2013
"Demanding" anything while you are in transaction is not a good approach. You can always "ask." I have negotiated and closed hundreds of short sale in the last several years, and I have found that if there are major issues with the home (roof, mold, extensive section 1 items) the short sale lender may either pay for them or reduce the price of the home. The reason? These issues will need to be dislosed to future buyers.

It all depends on the lender, the investors behind the loan, market conditions, and the strength and expertice of the negotiator.
0 votes Thank Flag Link Wed Feb 27, 2013
The Hagley G…, Real Estate Pro in Pleasanton, CA
Of course they can ask, will the bank agree to anything, most likely not, why should they and why are they asking to sign an as is addendum, because the bank is losing already money so why do any repairs...
This is why the buyers are buying a home for lesssssss.....

Hope this helps, there are some other good answers below so I do not want to double up on them.
Sincerely yours,
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0 votes Thank Flag Link Wed Feb 27, 2013
They can but they probably won't get very far! But I can tell you that you're not the only one frustrated with BofA! Good luck to you.
0 votes Thank Flag Link Wed Feb 27, 2013
The buyer can request anything until the contingencies are removed. As-Is generally means they won't ask for repairs but it is not unusual for the buyer to ask for a credit to cover repairs when issues are discovered during the inspection period.

If the buyer has signed the As-Is Addendum from the bank, they could possibly request a credit but the bank won't agree unless it is a really major issue that has come to light.
0 votes Thank Flag Link Wed Feb 27, 2013
It's a tricky situation with As-Is Addendums. Even in a regular sale, any request for repairs are at the Sellers discretion, so if the Seller refuses to do repairs there's nothing the Buyer can do other then walk from the transaction. When dealing with a Lender in a Short Sale, the lenders rarely if at all will agree to pay for repairs. One way to get around this is requesting for a credit towards closing costs so that the Buyer does not have to come up the money to close and could use it towards repairs needed.

One cautionary point though if a Buyer has already removed all contingencies, and decides to, their deposit is at risk.
0 votes Thank Flag Link Wed Feb 27, 2013
I can understand your frustration with BofA but unfortunately if you signed the As is addendum, you cannot demand for repairs. Most of the time no bank will pay for repairs on a house where they are already losing money....I had only one time in my career ( 4 years back) that the bank agreed to pay
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0 votes Thank Flag Link Wed Feb 27, 2013
Demand is not the correct terminology. A buyer can request or try to negotiate certain terms even if they signed an "as-is" addendum. But a negotiation is all it is. It doesn't mean you will get your way. You can ask for repairs. If they say no, then you can walk or you can continue.
0 votes Thank Flag Link Wed Feb 27, 2013
The Buyer can make any demand they like. The Seller can respond yes or no. If the Seller says no, then the Buyer can walk. If the Buyer has already released all contingencies, then the Buyer will not receive the deposit.
0 votes Thank Flag Link Wed Feb 27, 2013
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