Are You Really Buying A “Diamond In The Rough” Part 2

January 11, 2007

In Part 1 we spoke of the importance of having a home inspected by the type of contractor who has the knowledge and specializes in certain areas of homes.  But what if there are major problems - not minor problems?  What if the carpet is definitely worn and could use an upgrade - but it’s not in dire straits.  Or perhaps the deck needs a good workover.  Maybe the home you’re about to purchase has had several younger children living in it who have a penchant for drawing cartoon characters on the walls?  New paint job needed?  Such minor and perhaps cosmetic concerns may not be strong enough to kill the enitre transaction or scare away even the heartiest of lenders, but it may lead the way for some good old-fashioned negotiations between buyers and sellers.  Unless you’ve done this before, you need to have a good agent to help negotiate around these hazards.  It’s been proven that by having a third person negotiate on your behalf usually is best and gets the job done.  If not done properly, even agreed upon negotiatons won’t fly when it comes to the lender’s table.  If you want the deck painted and the mailbox fixed, and it’s in the contract, the seller must perform.  If the fence needs repair and you want it fixed, spell it out in the contract.  The appraisal may then state that the value is based upon the fence being fixed.  This may lead your lender to require the fence being fixed prior to you closing your transaction - afterall, you and the seller agreed on the fence repair.  But what if the seller doesn’t agree to do anything till after closing?  Let’s say you want new carpet throughout the house and while the seller agrees, also doesn’t want to pay for wall to wall carpeting before the deal closes.  The seller has a good point.  Why spend the $5,000.00 prior to the transaction being completed.  There is a possibility that the brand new carpeting would be installed, at the seller’s expense, and then the deal not close i.e. the buyer’s did not qualify for the mortgage.

Check back for Part 3 - and for all your real estate needs check with me.

Posted in All Things San Diego, Helpful Hints, Real Estate, Things of Interest