Should Our Agent Pay For The Repairs?
My wife and I are purchasing a home and financing it with an FHA insured loan. Our buying agent has told us that there are some minor things that we need to do to the house (paint the exterior walls where it is chipping, fix the electric outlet covers, put a spout on the bathtub, cap off a gas line coming out of the fireplace in the backyard) before the FHA (funding bank) Appraiser looks at the home if we want it to pass FHA standards and get the home financed. We’ve spent about $50 on supplies and I am going to do the work myself this weekend but what we are wondering is if our buying agent should be paying for these repairs instead of us since we do not own the home yet?
I’ve heard that sometimes the agents will pay for small repairs if they know it will help the buyers get funding and meet FHA standards. Should we ask her to reimburse us for the $50? Or should we ask her to hire someone to do the work so I don’t have to?
Thanks!
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January 15, 2010 @ 6:41 pm
FHA inspection issues are deemed safety issues and are required to be corrected prior to closing.
Most times the buyer insist that seller correct these issues. However if you are buying a foreclosure then the seller will never fix them.
Better alternative would be to ask seller for $50 credit at closing to cover supplies. But you have to ask before you do the repairs. They must agree in a signed addendum to your contract.
I would not ask your agent for $50. That seems kind of petty.
January 15, 2010 @ 11:57 pm
Neither you or the agent should be paying for this. Its still the responsibility of the owner.
January 16, 2010 @ 5:12 am
Whoever owns the house should pay for the repairs. I’ve never heard of such repairs being required prior to an inspectors visit. In fact, it’s HIS job to list all the needed repairs that must be done to satisfy the bank. The realtor can certainly make suggestions but what if you put all that time and money into fixing those things only to have the inspector later say the foundation is crumbling, or it’s eaten-up with termites? If this house is bank-owned, then I honestly dont know who has to pay for repairs but—again—I’ve never heard of repairs having to be made before the inspector arrives. Generally, he goes through the house, makes a list of all repairs needed, and you deduct the amount required for the repairs when you make your offer on the house. But…..since it’s only $50, I say do whatever you feel is right. If you end up buying the house, keep all your receipts and ask the lender to deduct the $50 then.
January 16, 2010 @ 5:46 am
assuming that this is not a foreclosure, you should have had the seller pay for the repairs. why would the seller let you do work on a home that you don’t own yet? how does he/she know that you know what you’re doing? why would you want to? lets say that the sale falls through, you are now out of pocket for your sweat equity as well as your 50 bucks. also, did you get a home inspection done? you mentioned that the realtor told you these things. the inspector should have given you an inspection report. although some realtors are also home inspectors they cannot act as both on one sale.