It sounds to me like you are getting an FHA loan and the appraiser has raised these issues as health and safety issues in the appraisal. A solution that I have used, and which most lenders will approve, is an escrow holdback for the repairs. What this requires is that you get a bid from a contractor for the work. The lender will then require that you deposit funds into escrow to pay for the work after closing (usually 2X the estimated cost). Then as soon as you own the property, you can have the work done, the FHA appraiser will come back out to inspect that the work has been done and escrow will release the funds in accordance with your lenders written instructions. Remember, until escrow closes and you own the property, you are making repairs to someone elses house. This is usually not something people are willing to do. An escrow holdback is an effective way to resolve this Catch 22 type problem. Speak with your lender and see if they will entertain an escrow holdback as a solution.
In the process of selling my home as with everyone else the "Pest Report" rose into my life yesterday.
One of the things Ive already dealt with was called out but its insignificant compared to the rest. My answer to the pest work was No dont take any funds out of escrow to complete the work. No I am not doing the work myself either.
My home went on the market initially "AS IS" To get it spruced up in two months Ive spent 4,000.
Pool Renovation, Ext Clean up, on and on...
So when this report came up my blood pressure elevated and decided that it wasnt negotiable for me to see another charge on my net sheet. I was of the mind the buyer can say goodbye.
I believe it is refereed to as "Poker Face" a few minutes and they worked it out. But...
The buyers contractor is coming Saturday to do said wrk. I still own the house. Is a "release of liability"
valid in this type of case? Effective My agent said he is licensed, insured bonded. Frankly I only believe what I see like proof. Yes yes yes so she can rush back to the office is what I am assuming....
I would agree with the gentleman that previously answered. In addition, another draw back is if you do go ahead with the repairs and then don't get your loan. You've then made the house marketable for someone else. Most REO properties don't allow for repairs due to liability. There are,however, some FHA programs that allow you to buy the property and do the repairs. If you need any help, let me know. I'm in Upland. My cell is 909-286-1301 and my web site is below.