Inspection came back the other day noting that we have Orangeburg pipes that, and I quote, "you can live with for the time being, but will fail in the future". Which like… yeah you could say that about anything in a house built in 1950 but whatever, that's why I've had sewer line insurance for 5 years.
We originally pitched that we would pay for a couple years sewer line insurance, they said no. Then we said okay, come up in price and we'll give you some more closing costs instead. They countered and shared a quote they got for trenchless sewer replacement at $6400, and offered to come back up to almost full asking price (originally got $6k off, plus $3k closing), forfeit all the closing concessions, and the repair be done on 9/24, closing date is 10/13. Excavator agreed to be paid with sale proceeds at closing.
Now it seems like this would ultimately net us a little bit more money, right? But, by demanding that it be done before closing it puts us at a pretty sizable liability if they decide to back out. I'm really fine with getting the sewer fixed if that's the hill they're going to die on, but is there any way to protect myself from their demands if the deal falls through?
Buyer refusing credits for sewer repair, demands they be done before closing
byu/dellollipop inRealEstate
Posted by dellollipop
11 Comments
They can pay to fix it before they move in at their own risk of not closing.
Just say no.
Sure put a caveat that they will be liable for the full cost of the repair should they back out for any reason and that clause will survive the closing or termination of the contract.
What’s the liability? It has to be fixed, either by you or a buyer. As a buyer, I’d rather not see that at all and pay $6k more for a house than see that and get a some credit for it.
Buyers market, but their pushing it..
In my city you wouldn’t even be allowed to sell your house without these pipes being replaced.
If it’s a V.A. loan that could be why as well. I’m currently buying a house using it that has issues I’d rather fix myself, but I don’t have a choice. In my case, seller credits are a no go and everything needs to be fixed and documented prior to closing. The lender calls the shots.
Also if it is a v.a. loan in your case or for anyone else, the appraisal means more than the inspection for some lenders.
If you get the repair done and they back out, you can then advertise that you’ve got a newly repaired line. If you don’t do this and they back out, you’re back on the market in mid to late September with old pipes. If I were the buyer, I’d want this done before closing, too. This is one of those jobs that can snowball into something much bigger once you get into it, and right now, it’s your problem, not theirs.
It’s entirely possible their lender won’t let them close unless it’s fixed before closing.
That’s pretty cheap for a sewer repair and it’s just something a new buyer would likely want anyway if it came up. Generally you only agree to concessions that another buyer would probably also demand and this is one of those.
Just say “no”
Their deposit becomes non refundable once work starts or better yet the deposit gets released to you.