Home Selling in Little Rock>Question Details

Privacy, Both Buyer and Seller in Little Rock, AR

How does the American Dream Downpayment Inititative effect the seller?

Asked by Privacy, Little Rock, AR Tue Dec 30, 2008

Does seller has to make any and all repairs even though the real estate contract limited repairs to $500.00? The home is being sold for less than $56,000. The seller has given up at least $15k in equity to sell the home.

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Steven Blackwood’s answer
In the event that there are additional repairs reqiured by the appraiser, which would be identified in the appraisal report provided to the lender, then it could be that additional repairs would be required which may in fact exceed the $500.00 you agreed to in the contract.
IT IS NOT, however, a requirement that you agree to make any repairs beyond the $500.00 you agreed to when you negotiated the contract.
If the buyer doesn't have the money to contribute to the necessary repairs and you are not in agreement to pay for any additional repairs beyond that which you originally agreed, then the deal is dead.
Occasionally, depending on the amount of repairs required and the cost, a new contract can be negotiated and the deal can be salvaged.
Hopefully you have good representation who can assist you with this sale and the purchase of your new home. Now, more than ever, it is imperative that buyers and sellers seek rprofessional epresentation in their real estate transactions.
The bulk of the homes on the market have little or no equity. So they either don't sell or the buyer may pay more than the home is worth when they make their purchase.
There are ways around that scenario and I strongly encourage anyone buying or selling a home in central Arkansas to find a seasoned Realtor who understands our current market, keeps up with the selling trends daily, understands the mortgage and default business, is capable of negotiating short-sale situations and up-to-date on foreclosure proceedings.
The foreclosure and mortgage modification market is affecting everyone and it cannot be ignored.
Good luck on your transaction. I wish you the best.
0 votes Thank Flag Link Tue Dec 30, 2008
Absolutely Not. If your contract states a repair limit of $500, then the buyer can take it or leave it. It makes no difference what kind of loan program there is. The ADDI program allows for up to 20% of funds towards rehab anyway. I'd be curious who is telling you otherwise. Hopefully your listing agent is not telling you that you have to pay more repairs than the amount in your contract. If so...you need to call the Broker of the company and have him tell you why....he won't have an answer for sure.
0 votes Thank Flag Link Tue Dec 30, 2008
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