Question Details

Kary, Home Buyer in North Carolina

First time buyer please help!!!!

Asked by Kary, North Carolina Thu Jun 19, 2008

I am purchasing my first house in NC. I got the sellers to come 2500 off the asking price and them to pay all of the closing costs. The only thing now is that they verbally agreed to finish the carpeting in the two spare rooms but say since they are paying the closing cost they will not do this. Is it better that I pay half of the closing and let them place the carpet or just buy the carpet myself ? And if they are paying the closing cots does that only leave me with the down payment, and inspection fee.

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Answers

9
Have them pay the closing costs. You do the carpeting, either now or whenever you can afford it. And you'll be able to choose the carpeting you like.
0 votes Thank Flag Link Fri Jun 20, 2008
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
If the seller does not agree to pay for apart of the carpeting then purchase the carpeting yourself, whe you can afford it.
0 votes Thank Flag Link Fri Jun 20, 2008
As another option - you could also look into a rehab loan (but that seems overboard just for some carpet) in which you escrow usually 150% of the estimated cost of the rehab, and the lender lets the deal go through without the carpet being done.

...just another thing to ask your lender about.

If I can be of any further assistance, please don't hesitate to contact me at http://www.HernandoLuxuryHomes.com - I'm always happy to help.

Thanks,

-Josh
0 votes Thank Flag Link Fri Jun 20, 2008
I would prefer to purchase my own carpet. If it's applicable in your area, you might have them sign an escrow amendment agreeing to the carpet allowance after making sure it won't cause you problems with your loan.
Web Reference: http://www.donovanblatt.com
0 votes Thank Flag Link Thu Jun 19, 2008
I understand a verbal agreement does not hold up in court, but what I was trying tp figure out is if it would be better for me to put my own carpet in. I thank all of you so much, All of this was very helpful. I will ask the lender if the carpet needs to be placed first . Again thanks so much!!!
0 votes Thank Flag Link Thu Jun 19, 2008
Few issues, first as stated below a verbal agreement is as good as the paper it's written on. Not enforcable at all. Get it in writting. It's like training a puppy, it's no good until it's on paper.
Next I would prefer to do any work that I was going to live with myself. Put in the carpet.
0 votes Thank Flag Link Thu Jun 19, 2008
Jed Lane, Real Estate Pro in San Francisco, CA
MVP'08
Contact
First item: Any oral promise made in connection to a real estate transaction is unenforceable. Your Realtor will advise you to get the promise in writing.

Second item: If the sellers are paying for carpeting, the value will be deducted from the maximum amount of your closing costs paid by the seller. But as Joshua pointed out, your lender may not accept the condition of the property if the bedrooms are unfinished.

Third item: Are the sellers paying cash at closing for your closing costs? If no, you are either paying the closing costs out of your down payment or finanincing them in your loan. Sellers typically fund the buyers' closing costs at the funding table from the proceeds of the sale.

Fourth Item: Your Good Faith Estimate from your lender or broker will show you your total cash-to-close and your net cash-to-close after deducting seller contributions to closing.
0 votes Thank Flag Link Thu Jun 19, 2008
Just as a matter of personal preference, I'd much rather buy the carpet (and padding) myself. While not a trivial expense, I know how much life I'll want to get out of the carpet, what kind of traffic it will have to survive, how deep the pile should be, and what quality of padding makes the most sense. The seller would have to guess at all these things, a tricky issue even if they were feeling generous. It seems, from your description, that they are not feeling particularly generous. I'd therefore be reluctant to push them to provide the carpet, as they could leave you worse off than you are without carpet in those two rooms.

Keep in mind that carpeting is not a significant "problem" with a home. Provided that they are not selling you a house that needs actual repairs, the carpeting allowance may seem petty at this point and invites animosity from people who presumably still have keys to your recently-bought house.

The key to this negotiation is that the carpet is not included in the written contract, and you probably don't want to try convincing a small-claims court that the seller is in breach of an oral contract. I recommend taking the money you would have put into closing costs and using some of it to select carpeting that you'll really enjoy, and waste no more angst over this unwinnable disagreement with the seller.
0 votes Thank Flag Link Thu Jun 19, 2008
What you might like to be more concerned about is will your lender fund the loan if you don't have carpeting down in 2 bedrooms...depending on your loan program the lender might say the home is not up to the program standards without flooring... I'd talk with your lender first and foremost.

If I can be of any further assistance, please don't hesitate to contact me at http://www.HernandoLuxuryHomes.com - I'd be happy to help however I can!

Thanks,

-Josh
0 votes Thank Flag Link Thu Jun 19, 2008
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