It’s not always clear who should pay for repairs when selling or buying a home, but there are several factors that can help determine responsibility.
The seller will usually be responsible for any repairs and maintenance issues that are not due to normal wear and tear. The buyer should be aware of these before they purchase the property.
If you find out about these issues before you buy the property, then it will be easier to negotiate with the seller on what they will cover. If you find out after you buy it, then there may not be anything they are willing to do to help you out.
Buyers should definitely expect the seller to make repairs that address health hazards or major structural risks to the property.
Water damage and mold should be assessed and repaired before the home is sold. This is almost always the responsibility of the seller, and a home with significant mold and water damage probably won’t pass a home inspection. Water damage can be expensive and can affect multiple places in the home, including the foundation, ceiling and walls, flooring, electrical, and plumbing.
Fire and electrical hazards are also usually the responsibility of the seller. The first step in checking for fire and electrical hazards is to find out what the sources can be. This can be done by checking for any signs of fire or smoke damage, as well as any signs of electrical issues. You should also check if there are any loose wiring or damaged outlets.
Major structural damage or building code violations will be noted by the property inspector, and repairs will, in most circumstances, be the responsibility of the seller since the home cannot be sold until the repairs are made.
Selling or Buying As-Is
Note that if you’re buying a property “as is,” you’ll be responsible for any repairs. A property with the “as-is” distinction means that the seller isn’t going to address any repairs. Technically speaking, all houses are sold as-is. A seller is never legally required to repair or modify their property for a buyer. But it does not relieve the seller from their legal obligation to answer questions honestly and disclose any known problems with the property.
Negotiating Repair Costs
Any previously owned home will be in need of some repairs. It can be as simple as a jiggly handle on the toilet or gutters that need to be torn down and replaced. Make a list and categorize from more expensive repairs to minor ones. Then get estimates on the cost of those repairs.
For instance, the average cost to replace a 50-gallon hot water heater is somewhere between $1,100 to $2,800, with most people spending about $1,800 for a replacement using the same model. You can expect to pay about half that to repair an existing one. You can research in your area for qualified technicians water heater and leaking pipe repair professionals. The average repair cost is between $221 and $964, though it could be as little as $100 for minor repairs and as much as $1,300 for multiple repairs.
HVAC system repairs are another major expense that should be negotiated. An average repair can be in the neighborhood of $500, while replacing an entire system in the average home can run a whopping $6,000 to $8,000!
If you’re the seller, it’s advised you offer the buyer credit to make those repairs or replacements and if you’re the buyer, it’s best to ask for that credit so you can be the one overseeing the repairs.
Knowing what repairs can cost versus replacing things like hot water heaters and HVAC can help you make a more informed negotiation. Then, understanding that it’s a give and take for both parties to come to a fair price, you’ll both be happy with the final outcome.
If you would like to buy a home in Dallas, Ft. Worth area and you have cash saved up to put down as a down payment but you can not qualify for a conventional mortgage loan, then you might want to consider purchasing one of S2 Equities remodeled homes via owner financing. You can expect sound, practical advice and fair cash or terms offer on your property if you need the help.