I hope that you are being represented by a competent Realtor.
Let me put it another wayâ€¦the lender is forgiving thousands of dollars of debt â€“ forgetting about collecting money that they lent out â€“ in order for this sale to go through. Now you want to â€œdemandâ€ or â€œrequestâ€ 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.
Jason K. Zaitz
NRBAÂ®, CDPEÂ®, NARÂ®
Direct - (925) 242-8971
Fax - (925) 807-5190
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.
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.
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.
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.
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.
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!
Good luck with your transaction, I hope everything works out for you.
It all depends on the lender, the investors behind the loan, market conditions, and the strength and expertice of the negotiator.
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.
Edith YourRealtor4Life & Chicago, North Shore & Northern Illinois Expert
Working always in the very BEST interest of her clients, Buyers, Sellers and
Investors alike....And always with a SMILE :)
Covering for @Properties Chicago & suburbs, and with her trusted Partner
Agents US & world wide properties. French, German, some Spanish &more EdithSellsHomes@atproperties.com or EdithSellsHomes@gmail.com
Check out my website at http://tinyurl.com/YourRealtor4Life
Get to know me! Learn about my experience, expertise, services! Read letters
of recommendation! Sign up to search for properties in my expanded service area.
HAVE THE MOST WONDERFUL DAY :)
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.
One cautionary point though if a Buyer has already removed all contingencies, and decides to, their deposit is at risk.