We have an offer on our home. Boiler has a crack in the chamber discovered at inspection. We were not there. We moved out of state. We got an estimate from our fuel/heating company for a fair amount. We're getting a break since we have worked with them for many years. They will put in a comparable new boiler. The house is in the Hudson Valley NY. Temps are near freezing already. We want to get this done now so as not to have pipes freeze. Potential buyers want to know how much the boiler will cost us. They want to upgrade through their company! This will put a strain on us financially. Their company may not give us the same deal for the boiler we were going to put in. Also we will have to wait to do this till after contracts or maybe even till closing. They will accept allowance or lower offer.Our company was going to allow us to pay this off by financing it for a year with half down. Buyers made offer on house with old boiler. They don't need to know what we pay for boiler?!
2007-09-18 20:54:39 · 7 answers · asked by ursaitaliano70 7 in Business & Finance ➔ Renting & Real Estate
Our realtor is now telling us that the company the buyer brought with them is now saying we need an entire new ac system. There is nothing wrong with it ! We just had it serviced for maintenance--do it every year. We were told it was in " Factory Condition"! Their saying it's "fried"! I smell a scam! We will be replacing the boiler with a better one also!
2007-09-19 02:52:50 · update #1
I assume the inspection was required by something in the contract such as contingent on financing, city code or spelled out in the contract.
IF the existing boiler will get you by until closing, I would negotiate a lower price and close allowing them to install whatever upgrade that they are willing to pay for AFTER they close. NOT BEFORE.
I would use your contractor's written bid as a basis for the allowance based lower offer. Therefore, it is reasonable to disclose the price of the replacement in order for you both to agree on a new contract at the new lower price and covering the boiler problem. Spell out who will do what and when.
They are showing you a bid for more than it will cost you as a bargaining chip to cut the cost of the home to them. Your contractor's bid is the basis for upholding your adjusted price.
Ask your contractor to examine their bid. Find out if he can match the upgrade and at what price. Perhaps it may be worth the upgrade at your contractor's price to get the home sold.
What are you going to do if the deal falls thru due to this problem? You may have to make a few more house payments. Do KEEP a Realtor or real estate attorney between you and the seller with the goal of logical presentation to the other. If you can keep emotions from being displayed to the other party, it is in your interest to do so.
The question is will the lender accept the new contract with the inspection report disclosed? Most lenders demand a deposit escrow of 1.5 times the written estimate to close. They would not release the escrow until someone can show a receipt for the payment of the replacement. In my case, the lender kept an additional $50.00 for doing so as an escrow fee.
You do NOT want any hanging liens when you sell. Financing your boiler until you close may be okay, but not after closing by more than a day.
2007-09-18 21:18:09 · answer #1 · answered by Jeff H 5 · 0⤊ 0⤋
No, they cannot hold out for an upgrade.
The buyer's have a right to get the boiler in working condition, and you have made arrangements to do that.
Banks will not loan on a home without a working heating system. You don't have a choice but to fix it, and you AGREED to an inspection, and just because you vacated the home isn't their problem. How do they know you were not aware it was cracked when you put it on the market? How are they, as lay people, supposed to know the heating system isn't working during the summer?
You CAN (if you are feeling generous), allow the buyer's to do the upgrade and you only pay or what YOUR company quoted you...that way they get the system they want and you are not out extra money.
However, if I were your Realtor, I would advise AGAINST doing that. A closing can fall through, and you can get stuck with the bill.
There is another issue: If I were representing the BUYERS, I would advise to them to NOT accept your financing the system that is attached to the house. If you default, that gives the company and automatic right to file a UCC lien against the PROPERTY, and leaves the buyers holding the bag.
In fact, there is a document that you have to sign at closing that you haven't had ANY work done on the house that isn't paid for in full...if you lie, then that is a material misrepresentation.
You need to pay it out of your proceeds, up front.
2007-09-18 22:38:04 · answer #2 · answered by Expert8675309 7 · 0⤊ 0⤋
The buyer should have addressed that before closing. Their original offer should have included replacement of the carpet. If they discovered it after closing, they should have discovered it prior to making their offer. They also should have had a professional inspection -- which should have been in the offer -- and should have negotiated that at that time. You are under NO obligation to do anything, and your agent probably told you that. You may want to confirm that with an attorney, since agent's can give legal advice. Most states require you to disclose hidden defects that you are aware of, but worn out carpeting is not a hidden defect. It's pretty obvious. The buyer has a problem, you don't.
2016-05-18 03:16:09 · answer #3 · answered by Anonymous · 0⤊ 0⤋
If they wish to do an upgrade with their provider, offer them an allowance equal to what your outfit will charge for the replacement. They will then be free to upgrade to their heart's content with whomever they wish on whatever time schedule they want. They pay the extra cost for the upgrade and you close on time. The closing agent can arrange to handle the allowance and pay it out to the provider once the work is done. If anything is left, it goes back to you.
It should only take a couple of hours for the closing agent to set this up. This way, everyone gets what they want.
2007-09-18 22:03:36 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋
You don't HAVE to accept their terms. Tell them you're replacing it and if they want an upgrade, they have to go through your company and be billed for the difference.
Are you not making any money on the deal? If you are, just do as they ask & have the money come out of your profit - it'll probably be easiest that way.
2007-09-19 01:45:29 · answer #5 · answered by Roland'sMommy 6 · 0⤊ 0⤋
They can do whatever you allow them to do. You can just replace it and tell them that's the deal, take it or leave it. How badly do you need this buyer?
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2007-09-18 21:03:28 · answer #6 · answered by Kacky 7 · 0⤊ 0⤋
If they upgrade they have to pay. And yes it can hold up the closing process.
2007-09-19 00:42:45 · answer #7 · answered by sheenamarie10 2 · 0⤊ 0⤋