I remember and had commented on your original question weeks ago when you asked if you should disclose it. You will remember the consensus of the very experienced and helpful Realtors on Trulia was loud and clear... disclose now before it became a big issue, in fact the phrase avoid a walk through nightmare may have been my exact advice. This is truly an example of doing the right thing always is best... if you had disclosed it then it may have been easily resolved. Now by " disclosing " the stain you hid under an ottoman the *day of the closing* they feel deceived. Speak to your attorney .... be more careful about listening to an agent who advises against disclosing defects.
My thought: I can't imagine that one of those discount carpet companies would charge anything more than a few hundred dollars to totally re-carpet the basement room. Get an estimate from a local carpet company for the single room. Go back and renegotiate with that estimate in hand.
An attorney has advised that I am not responsible as it states on page 3 of the purchase agreement that they take it as is, but I am still trying to work with them but they are set on $1500.00. I do not feel it is worth more than $300.00, as the carpet is worn and stained, and they were able to see this when they did the 3 walk throughs.
I know the $20,000 equity is irrelevant, but I would not have given them a $1,500 concession for the carpet. The carpet is very old and worn, and they took it as is, despite the knowledge of the paint stain. They knew the carpet had other stains. I am trying to do the right thing, but I do not feel it is my responsibility to buy new carpet.
As Ann pointed out, if the carpet was nearing end of life, that will change everything. If the carpet is brand new it can be REPAIRED for much less than what has been quoted. Call the company that installed it. Let those who are well equipped to diffuse emotional situations handle this. That is the role your agent fills. Do not engage in direct communications with the new home owner.
Now that you have sold your home are you ready to move to the Sunshine State?
I can't see how your agent would in any way be liable, unless he somehow left a paint lid stain on the carpet. But I'm a not lawyer, and I suppose you might want to talk to one for real legal advice.
What was the overall condition of the carpet? Was it brand new? Did it have other stains? If it was a brand new carpet, with only the paint stain, I'm not sure it is unreasonable for the new owners to ask for replacement cost. If it was a ten year old carpet...or had other condition issues, then things get a little more gray.
Going to court will almost certainly cost you a lot more than 1500....
Even though the transaction has closed, it may make sense to continue to "fix" the issue of the carpet by going through the agents, who are less personally involved in this problem.
Congratulations on the closing, and I hope you have a lovely holiday.
Was the stain clearly visible when the buyers did their final walk through? If it was, by closing; the Sellers have accepted the house "As-Is." While they can threaten you all they like they have no chance of prevailing in court. If the stain was visible and objectionable to them, they should have refused to close until the issue was resolved. While anyone can take anyone to court, you are in no danger of losing any money and in most states the Buyers would in fact be liable for your court costs when they lose their case.
Your agent was wrong to advise you not to disclose it unless it was clearly visible to the Sellers which I presume it wasn't. You were right to be honest. While you're agent would be a better person to offer to share it with you, legally they have no responsibility to do so, ethically is another question.
The fact that the home appraised for more than they paid is irrelevant, and unless you agreed to leave them the ottoman as payment for the stain this too is irrelevant.
I would suggest to your agent that they get involved and aggressively work with you to make the problem go away or that you're likely to file a complaint against them and the company they work for with the Michigan State Real Estate Commission for advising you not to disclose the issue earlier.
I recall your initial question as well as the responses leaning towards disclosing this informationas opposed to concealing it.
The expectation for repairing this stained carpet should be to replace it with a similar material. The buyer's shouls not expect an upgrade or replacing the carpet with tile of hardwood. That would be unreasonable.
A reasonable amount for replacement consideration is somewhere between your $100 amount and their $1,500 request. Probably your best approach is to bring in estimates for replacement from Lowes, Home Deposit, etc and base your amount on reasonable documented estimates provided by your resources.
Yes, you are correct. Unless there is some undisclosed issue the buyer's request of $1,500 does seem excessive. Plan on making repairs with similar materials and installation expense, nothing more....
First of all it really surprises me that your agent suggested NOT to disclose it. I am not saying that you are not telling the truth, just that most agents SHOULD tell you to Disclose, Disclose, Disclose! If you are in doubt, disclose!
Well they are asking for $1,500 and you offered $100.00. This is a two sided issue. First of all, yes they can take you to court but that would be time consuming and most likely end up in arbitration before it went before the judge for a ruling.
First of all you should have disclosed the stain, but the bottom line is, the buyer's should have probably NOT closed until the issue was resolved to the satisfaction of both sides. That is all in the past now. Cooler heads should prevail and both sides should come to an agreement.
What was stained and what will it cost to make that repair? That really is the matter that needs to be addressed. I would suggest getting two or three estimates and offer a settlement to the other side. What you want to pay ($300.00) really doesn't matter at this point.
What the home appraised at really has no value in this situation, the issue is the stain that you did not disclose. Worst case scenario, they will not be happy with what you offer, they will take you to court, you need to be prepared with estimates that can substantiate your claims. Ultimately an arbitrator or the judge will resolve the issue with a reasonable solution.
I would really try to resolve it outside of court, but if they want to be difficult and ask for more than the repair is, you will have no choice but to resolve it in court, and I would not be scared of court.
As far as your agent is concerned, if he truly did tell you not to disclose the stain, you do have recourse. I would first call his/her broker and talk to them. If you are not satisfied with the solution, you can complain to the state board about the agent. You can also take the agent to court if you so choose, but it would be a bit extreme.
My suggestion would be that all parties sit down together and iron something out to be done with the issue.
I hope this gives you some answers, I know you are in a difficult situation.