Unless you’re buying a brand-new home, any home you purchase may need some repairs. This is normal. What can get a little tricky is determining essential vs. non-essential repairs, and knowing what the seller is responsible for. If you’re a bit hazy in this area, we’ve got you covered. Here are a few factors to consider when buying a home that needs repairs.
What are reasonable, essential repairs? Get a home inspection–it should be non-negotiable. Without one, you could end up purchasing a home with major issues which could turn your dream home into a dud. Examples of reasonable repair requests are replacing the electrical wiring or a new roof. Do not move forward in the home buying process without addressing major red flags such as these. If a seller is unwilling to make these changes and is selling a home “as-is,” consult with your real estate agent on how to proceed.
Are the non-essential, cosmetic repairs too much? Most buyers will identify five to six cosmetic repairs and request a seller credit to cover the costs. If the seller agrees, the buyer can make the cosmetic repairs themselves or hire a contractor. However, any repairs the seller is unwilling to make will fall on you. If there are multiple repairs, you must determine if you’re able, willing, and have the budget to complete the repairs. It’s important to remember that completing home repairs yourself may take longer than expected.
Will repairs slow down my home buying process? The short answer is maybe. Identifying the necessary repairs as soon as possible (during the negotiating process) is key. If you’re close to closing, these changes could change everything or even cancel the sale. In some instances, repairs can be completed after the closing date. However, before agreeing to this, consult with your real estate agent.