What happens after the home buyer has their physical inspection?
Oooohh, what a question? What occurs AFTER the home buyer conducts their inspection? My “pat answer”: “it depends”. The home buyer has looked and looked, pondered, and finally made the decision to proceed to purchase a home. Then BAM – the inspection! Natalie wrote an offer last week on a foreclosure, after the hoopla of the multiple offer situation and then the “all cash offer” that never materialized, Natalie and her home buyer were the “lucky bidder”. Now the inspection:
We are NOT shocked that the old shake roof needs to be replaced
The air conditioning and heating probably also need to be replaced (cha ching) probably another $10k
HOWEVER, there are two chimneys that are “suspect”
AND there are two retaining walls that require further evaluation - this can be really costly!
Negotiate – you say –well many banks will not. Each additional inspection can cost our client money. So tomorrow before the holiday weekend, we have Parkstone Construction evaluating the two chimneys… Then if it is bad news.. we will approach the lender, if good news, we need to proceed to the retaining walls. Wish our client luck, she is in love with this home – but as always it is a matter of affordability.
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9/25/2008 7:21 AM
Los Angeles Real Estate Blog wrote:
Hooray! Natalie and I successfully negotiated the full $16,000 repair bill for our client’s two damaged chimneys. Parkstone Construction will be starting the work as soon as we close escrow. Now the issue is with the details. Lenders “don’t like” big credits, they also “don’t like” cracked chimneys. The “fix” be may be a withhold in escrow. Lenders often want to withhold 1½ times the cost of the work, in this instance $24,000. The bank/owner of the property contributes the $16,000 and the buyer contributes the $8,000. The money will remain in escrow ... -
9/25/2008 7:23 AM
Los Angeles Real Estate Blog wrote:
Hooray! Natalie and I successfully negotiated the full $16,000 repair bill for our client’s two damaged chimneys. Parkstone Construction will be starting the work as soon as we close escrow. Now the issue is with the details. Lenders “don’t like” big credits, they also “don’t like” cracked chimneys. The “fix” may be a withhold in escrow. Lenders often want to withhold 1½ times the cost of the work, in this instance $24,000. The bank/owner of the property contributes the $16,000 and the buyer contributes the $8,000. The money will remain in escrow until ... -
9/25/2008 7:34 AM
Los Angeles Real Estate Blog wrote:
Hooray! Natalie and I successfully negotiated the full $16,000 repair bill for our client’s two damaged chimneys. Parkstone Construction will be starting the work as soon as we close escrow. Now the issue is with the details. Lenders “don’t like” big credits, they also “don’t like” cracked chimneys. The “fix” may be a withhold in escrow. Lenders often want to withhold 1½ times the cost of the work, in this instance $24,000. The bank/owner of the property contributes the $16,000 and the buyer contributes the $8,000. The money will remain in escrow until ...
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