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What To Ask For In Repair Addendum

What To Ask For In Repair Addendum

Repair Addendum

Ok, now that your home inspections have been completed, what should and shouldn’t you ask the seller to repair?  In my previous article “What Happens at a Home Inspection” I went over what happens at the typical home inspection, costs and procedures. This article we will tackle what you should and should not ask for in your repair addendum when it comes to recommended repairs found in the home inspection report.

You Are Not Buying A New Home

If you are buying a new home, you should still have all typical inspections completed. Just because the home is new does not mean everything is okay.  I have seen brand new homes needing sewer line repairs, debris left in crawlspace, flooded crawlspaces etc.  Fortunately, for you, these things should be covered under your new home warranty and the builder will more than likely take care of them. That is why it’s still very important to perform these inspections, even on brand new constructed homes.

For the Rest of You

That are not buying a new construction home, it is very important to not forget that you are NOT buying a brand new home. As homes settle and time passes, things happen to homes – Windows may need caulking, siding may need caulking, tile work may need caulking, you may have leaks in the crawlspace, under sinks, attics, around windows.  So what should you ask the seller to repair and what should you not ask the seller to repair?  I think every circumstance is different and some deciding factors include – were there multiple offers on this home? Do they have a backup offer in hand? Was the home on the market for over 90 days and are you the only offer they have? Did you offer over the asking price?  Did your offer get accepted under the asking price?  All of these things can alter your approach on what to ask for and what not to ask for.

Should Ask For

When it comes to home inspections, there are some things that you should definitely consider having the seller take care of before you take possession of the home because assuming liability after taking possession could be a risky proposition. There may be potential of estimates for repairs going over the original bids once the work begins.Home Inspection Report

  • Leaky roof/mold in attic A leaky roof or mold in the attic should really be evaluated by a professional. Mold remediation bid repairs are usually pretty solid and don’t change too much in price. However roof repairs can have a little more variation and tend to be a lot more expensive. When possible, this is a repair you may want to have the seller complete before closing to alleviate yourself from the liability of finding even more issues when they start the repairs if you were to receive a credit for the repairs and have a professional perform them once you take possession of the home. Don’t risk it, have the seller perform these repairs if you can.
  • Water/mold in crawlspace (rodent infestation) Again, this is a repair you may want the seller to take care of before possession.  Rodent infestation typically requires some sort of paid monthly service for 1 year in order to correct it. You can’t simply fix the missing/damaged screens where the rodents are getting in and call it good. It takes months of testing to confirm that the issue is corrected.  When it comes to water/mold in the crawlspace, this is an item that can cost a few thousand dollars to repair depending on what’s causing the issues. Typically, these bids for repairs are pretty solid and don’t usually turn into other headaches once they start the repairs. If you can, you should alleviate yourself from the risks of any of these and see if the seller will perform the repairs before close date.
  • Electrical When minor repairs like GFCI outlet needed at a certain outlet are called out, and you are fairly handy, this is something you may be willing to take care of once you take possession of the home. If you are not handy and for more serious concerns (breaker box issues, exposed bare wires, inoperable switches, etc) you should definitely have a licensed electrician bid and give estimate for repairs to have the seller perform these repairs before you  take possession of the home.
  • Major mechanicals Like the furnace, water heater and AC unit may also be something you want the seller to take care of before close date if concerns were called out by the inspector. Because the inspector is not the professional when it comes to “needed” repairs and they only do visual inspections on these items and give “recommended” repairs, it is in your best interest to have a licensed professional inspect any items of concern called out by the home inspector.  It can be risky to take a credit for these repairs and then perform them after you take possession based on the estimates for repairs (too many variables and very expensive issues can come up with furnace repairs) Water heaters however are pretty straight forward and the bid you get for that is typically a pretty solid number without much room for variance.

Maybe Not Ask For

Again it’s all relative and every deal is different with different variables. Below are some of the items that maybe you could consider taking care of and thought of as a regular home maintenance items called out in an inspection report.  Don’t forget, it’s the inspectors job to try to find EVERY little thing wrong with the home. Including simple things, like doors and latches needing adjustment, caulking around sink needing touch-ups, caulking around exterior windows needing touch-up etc.

  • Caulking around sinks This is a  minor repair item considered regular maintenance that you may want to tackle on your own rather than asking for the seller to repair before possession.
  • Caulking around windows/siding As long as the caulking to siding/windows is considered normal maintenance needed and not failed siding/windows and or improper install this may also be an item you don’t ask the seller to take care of before close.
  • Adjustments to doors/latches If you are at all handy and think you are capable of making these adjustments, it may be something you don’t ask the seller to repair before possession.

As stated in this beginning of the article, it’s all relative. There are a lot of things to consider and all deals are different.  You would be best served to be working with a real estate agent that can prep you for all the “what if’s” in negotiations and remember that you are not buying a brand new home. Your realtor will be able to help you get the needed bids for repairs to be completed.  You can decide what recommended repairs you are willing to do and what repairs you are not willing to assume the risk of and prefer the seller to perform before possession.

Additional Helpful Information

FHA 203k Loan Requirements (Dream Home Financing) – https://fhalenders.com/fha-203k-loan/

Home Inspections: What Buyers and Sellers Need to Know (Bill Gassett)- https://www.maxrealestateexposure.com/home-inspections-buyers-sellers/

What Follows The Home Inspection Results? (John Cunninham)https://phoenixrealestateandhomes.com/buying/what-follows-the-home-inspection-results/

What to Negotiate After a Home Inspection (Sharon Paxson)https://newportbeachrealestatecafe.com/2018/07/11/what-to-negotiate-after-a-home-inspection/

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Jamohl DeWald

If you're going to pay a mortgage it may as well be your own! I'm here to serve you, not sell you. One of my greatest joys as a real estate professional is handing over the keys of ownership to a first-time home buyer. As an experienced agent, I understand that preparation is important to avoid missteps with that first home purchase. I’m here to help with navigating the waters of those potential missteps.

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