New house-roof deemed uninsurable?

Question

I am in the process of buying my first house. I found one, offer accpeted and inspections had. The inspector told me I need roof repair in 5 years, but overall it's ok. Then the insurance agent has deemed my roof "uninsurable". What happens now? My ten days post offer grace period is over but I can't get a loan without proper insurance. I can't possibly spend more money on this house at this time either. So what happens in this scenario? The agent said they will likely pay for the roof, is that normal? I only had $1,000 post inspection repairs in the contract.

Answer 1

The seller's claim that the roof was good for 5 years simply proved to be false. Because the fact that you can't get a loan without proper insurance the request for repair period gets extended if the seller still wants to sell the house to you. Your agent is right when he / she said that the seller will likely pay for the new roof or roof repair and the work would need to be done prior to closing. The seller could try to negotiate sharing this cost, but I highly suggest you stick to your guns and make him swallow the bill by his self.

Answer 2

The purpose of the $1,000 limit in repairs is normally to give the seller the chance to back out of the deal if the repairs are too high.

Since the insurance company has said the roof is uninsurable it will have to be replaced. As with anything in real estate, who pays for that is negotiable. In a buyer's market, the seller will usually be stuck with it. In a seller's market, the buyer will be. In many areas, it's a buyer's market right now.

Your agent should simply tell the seller's agent about the roof and ask them to pay for it. If they refuse, you can back out of the deal.

Answer 3

Why don't you get the seller to give up the price of the roof in the amount they are asking. It's called a gift, and than talk to your LO, they might be able to get it stipulated in the deal that the roof will be repaired. Underwriting can be flexible when necessary.