Going to settlement tomorrow (Herndon: sale, credit, broker)

[nova_home_buyer]

Hi,

We are buying a TH in Herndon and the settlement is tomorrow. Sale price is $386,500 (was listed for $388,000) and seller is giving us only $8,000 as seller credit. The TH is in a good shape, and I also know that sellers are not always obligated to give credit to the buyer.

We had the inspection done and there were few things the seller had to fix which she accepted and signed the addendum. In the addendum we mentioned that repairs are to be done by licensed plumber, electician, or contractor where appropriate. We found out today that she hired a company to do the repairs and the company is licensed but the actual contractor is not licensed at all. They have charged her $2,500 for the job.

I am a first time home buyer and I do not feel confortable with the situation. I'd rather have a licensed professional do the repairs. But the "damage" is done! We are going to settlement tomorrow.

What do you think my course of action should be. If I want to get more credit from the seller, how much do you think is appropriate?

On a side note: The inspection report states that the hot water pressure in the washer is insufficient, but their unlicensed contractor said it is fine and he did nothing about it. But she has signed off on the addendum that she will have that taken care of.

Please advise! Thanks!

[Margery]

I assume you have an agent. If you are not happy with the situation, ask to speak to your agent's Broker and get the Broker's opinion. When you do the walk through make sure all repairs are done to your satisfaction, if not, do not sign off on the walk through inspection form. Again, the Broker can help you with this better than anyone on this site can. Good luck.

[nova_home_buyer]

Thanks!

My agent is excellent and all I have is praises for her. But sometimes I feel she is not agressive enough. I'd like to get more credit from the seller for not honoring their end of the deal. My agent says to ask for a $300-$400 only.

I want to ask for at least $1,000 or $1,500. The compensation for a defective washer (with insufficient water pressure) is alone $1,000 I think!

Originally Posted by Margery

I assume you have an agent. If you are not happy with the situation, ask to speak to your agent's Broker and get the Broker's opinion. When you do the walk through make sure all repairs are done to your satisfaction, if not, do not sign off on the walk through inspection form. Again, the Broker can help you with this better than anyone on this site can. Good luck.

[American Arrogance]

I'd postpone the settlement. Call the company and ask about the warranty feature. Also I'd call an licensed contractor and ask thier opinion. I dont really know how the system works but if I wasnt comfortable with the repairs I'd ask her to have the company send out a licensed professional and do the reapirs or reinspect. Its a buyer market so Im pretty sure the seller would be happy to accomodate you to finish the sale.

[bungalowmo]

Originally Posted by American Arrogance

I'd postpone the settlement. Call the company and ask about the warranty feature.

Also I'd call an licensed contractor and ask their opinion.

I dont really know how the system works but if I wasnt comfortable with the repairs

I'dsend out a licensed professional and do the repairs or reinspect.

Its a buyer market so Im pretty sure the seller would be happy to accomodate you to finish the sale.

Yes....Postpone!

My place needed work too, so I had a Licensed Electrician of my choice check it out & give me an estimate....same with my roofer. At closing, the seller wrote checks to MY choices & MY guys did the work.

Never EVER let the seller choose who does the repairs or fixes, as they will never get the quality and/or level of professionalism that the buyer would choose.

I cannot stress the above comment often or loudly enough!!!

Mo

[handy man88]

Originally Posted by bungalowmo

Yes....Postpone!

My place needed work too, so I had a Licensed Electrician of my choice check it out & give me an estimate....same with my roofer. At closing, the seller wrote checks to MY choices & MY guys did the work.

Never EVER let the seller choose who does the repairs or fixes, as they will never get the quality and/or level of professionalism that the buyer would choose.

I cannot stress the above comment often or loudly enough!!!

Mo

My suggestion would be to get the money upfront from the seller.

The person writing the checks is the person that the contractors respond to.

[bungalowmo]

Originally Posted by handy man88

My suggestion would be to get the money upfront from the seller.

The person writing the checks is the person that the contractors respond to.

The cash was held in an escrow account until the work was done...then they were paid.

Depending on the work that needs to be done, it's possible the seller won't have the cash until the place is sold. At closing this cash was put aside for my guys to start the work. Both contractors agreed to these terms. Seemed like a concept they were both familiar with.

This was my first purchase, so I was depending on my agent to know her stuff. She did.