| When you purchase a home, your contract should | | | | from other homebuyers, you may want to keep your |
| contain an inspection contingency. Once the property | | | | request to a minimum. |
| has been inspected, you'll receive an inspection report | | | | 3) How To Handle The Repairs - Once you decide |
| detailing all the hidden flaws or problems. | | | | who will be responsible for certain repairs, you can |
| After studying the report, you have to make a decision | | | | arrange to have it completed in the following ways: |
| if the flaws can be corrected and whether you can | | | | 1) Get The Seller To Credit You Upon Closing - Instead |
| live in the home if they can't; who's responsible for the | | | | of the seller receiving the full purchase price, you can |
| repairs; and what happens when both sides can't | | | | have the seller transfer funds to a special account to |
| come to an agreement on who pays. Let's examine | | | | be used for repairs you've agreed upon. When you're |
| these issues separately: | | | | ready to perform the repairs you can draw money |
| 1) Can The Problems Be Corrected? - Consult with an | | | | from the account to cover the costs. |
| inspector or independent contractor to see if the flaws | | | | 2) Lower The Sales Price By The Estimated Repair |
| can be corrected and find out what it will cost you. A | | | | Costs - If you can get to the seller to drop the sales |
| sinking foundation can't be repaired, but an improperly | | | | price by the amount needed for repairs, you'll benefit |
| wired guest unit can be repaired. | | | | from lower property taxes (if applicable) since your |
| Once you decide the flaw can't be repaired, you'll have | | | | purchase price will be lower. |
| to make a decision whether you still want to purchase | | | | 3) Let The Seller Make The Repairs - This should be |
| the home. Major repairs entailing a couple of weeks | | | | one of your last options. The quality of repair work can |
| may deter you from purchasing the property. In a few | | | | be inferior as a seller will save money by using a |
| states, the standard inspection contingency allows the | | | | cheap handyman or, even worse, try to do the repair |
| seller a chance to correct the problem before you can | | | | themselves. |
| cancel the deal. But if the flaw is uncorrectable, you | | | | 4) Have The Seller Pay For The Contractor You Hire |
| should be able to terminate the deal. | | | | - While this may sound like a great idea, you could run |
| 2) Who Covers The Repairs? - You might think the | | | | into problems closing the transaction on time if the |
| seller should be responsible for all repairs, but if you | | | | repair work takes longer than planned. |
| bombard a seller with too many requests, the seller | | | | If you're using traditional financing, your lender may |
| may refuse to sell the property to you. But if you | | | | require you to perform the repairs before your sale is |
| know the seller is in a bind and wants to sell quickly, | | | | completed. If you're stuck playing for those repairs, you |
| you can push for more concessions to have the seller | | | | may be able to negotiate with your bank to include the |
| cover more repairs. But if you are facing competition | | | | repair costs into your mortgage loan. |