Home Selling in Dallas>Question Details

Aneh, Home Seller in Dallas, TX

Regarding the repairs addendum- does the cost of repairs need to be disclosed to the buyers??

Asked by Aneh, Dallas, TX Tue Feb 2, 2010

The sellers are requesting copies of all invoices for the repairs requested per the Repairs Addendum. Does the amount of each repair need to be disclosed as well? I would prefer the buyers not know what amount I am coming out of pocket.

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The buyer is likely more concerned with who did the work and how they warranty their work, than they are with the specific amount paid for each repair. But, the amount is helpful, as there are standard and customary prices for certain repairs, and seeing that dollar amount, too, can give the buyer peace of mind when the repair completed matches up with a reasonable price. If the repair included a 1-hour visit by a licensed plumber, but the fee paid was $10, I would seriously doubt the qualification of the licensed plumber and/or the work that they did for such a low fee. If the 1-hour visit were charged at a rate of $50-150, for work that could have a normal completion time of a single hour, I would personally feel more comfortable that a level of work had been completed.
Ronda
0 votes Thank Flag Link Mon Feb 22, 2010
Aneh,

It depends.

What does your Broker say?
They are most familiar with your situation.

When I am working with a Seller, I determine what is best for the client based on their current situation and go from there.

Good Luck!

Rebekah Owen, MBA
Managing Broker
Benchmark Properties.com
0 votes Thank Flag Link Mon Feb 22, 2010
Repairs generally should be done by someone qualified to do them (licensed if necessary) and may carry some warranty over to the buyer.

While it may seem none of their business how much you paid, the fact that they were completed by a qualified professional is important for the Residential Service Contract. You should be able to get a statement from any professional completing work that he did the work and stands behind it (for a specified short period), if you really want to keep your costs hidden.

If the professional won't do that, then you have to ask yourself the question of whether their repairs are truly of a quality you would want done on a house you were buying.
Web Reference: http://www.SumnerRealty.com
0 votes Thank Flag Link Thu Feb 4, 2010
Usually the dollar amounts for repairs asked for on a repair amendment are not stated initially until the repairs are complete, most of the time the seller or buyer will have to obtain quotes on what is asked to be repaired. The receipts and invoices are delivered to the buyer/buyers agent on or before closing.

One thing to keep in mind is each transaction is different you should discuss this in detail with your listing agent. If, you the seller are not represented by an agent you should contact a real estate attorney in your area for advice.
0 votes Thank Flag Link Wed Feb 3, 2010
I wouldn't sweat it too much. If they asked or didn't ask for receipts, why not supply them to the buyer.
That way there is a record the repairs were done and what was done. In my experience buyers who are asking for repairs are going to come back and check them before closing as well.

The more disclosure and transparency the better in most cases. If you somehow don't disclose the amounts I might think you were trying to hide something....that's just my take.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Tue Feb 2, 2010
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
If the contract or the amendment to the contract does not specifically require you to deliver invoices, etc. to the buyer, then you do not have to do so. The contract is always your guiding document. It's hard to be more specific without knowing the exact language of the contract and/or amendment.
Web Reference: http://www.phgbrokers.com
0 votes Thank Flag Link Tue Feb 2, 2010
Just curious as to how the amounts will not be disclosed since you plan to provide the invoices. Are you planning to mark out the prices? That will raise a red flag. As Kari states, you are obligated to follow paragraph 7 with regard to repairs. The only way a homeowner/seller can arrange to do repairs themselves would be to have that agreed to in writing and signed by both principals BEFORE the repairs are accomplished. If paragraph 7 is not followed, the buyer has the right to have the repairs made themselves, charge the seller for them on the HUD and delay the closing to be able to get this accomplished, that is their rightful remedy. It's much easier and simpler when the seller hires professionals to do the work - that way the buyer has someone's tie to pull if something goes wrong with the repair on down the road from closing. As far as disclosing what you paid, while I sure you believe you have a good reason for not disclosing that, the buyer may feel very differently. When working for the buyer I always insist that the seller provide the invoices, along with names and telephone numbers so that they can confirm the work performed.
0 votes Thank Flag Link Tue Feb 2, 2010
No one can render an opinion it is all based on how the executed agreement was signed by all parties which governs what needs to be presented repairs were completed.

Your listing agent can review terms and conditions of sales contract with you

Lynn911
0 votes Thank Flag Link Tue Feb 2, 2010
Just wanted to clarify that all of the invoices have/will be provided. I just feel like the buyers do not need to know the $$ I came out of pocket for the repairs.
0 votes Thank Flag Link Tue Feb 2, 2010
Also, you should refer to paragraphs 7E and 7F of your contract. 7F states that the work "must be performed by persons who are licensed or otherwise authorized by law to provide such repairs". If significant problems (like electrical or plumbing) were found and you thought you'd save some money doing the repairs yourself, then you may have an issue. Otherwise, I'm not sure why you wouldn't want to provide the receipts.
0 votes Thank Flag Link Tue Feb 2, 2010
Is there a certain reason why you would not like them to know how much it is costing you? If it's going to be a deal breaker and you have had the repairs done I would certainly recommend that you include the invoices in full if they are requesting them. The buyers lender may request them as well before they will lend on the property. Be upfront about repairs and disclosures, they can come back to haunt you for quite some time. Remember, Texas allows for triple damages in any lawsuits or claims arising from a real estate transaction.
0 votes Thank Flag Link Tue Feb 2, 2010
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