When you put your house up for sale, you have lots of options about what you do to get ready; fresh paint, new flooring, new windows, all the way up to a complete remodel, topping it off with staging. Or you can do nothing. Sell it “as is;” with the stained and faded carpet, wood rot, broken and/or outdated appliances, ancient AC compressor, and completely outdated décor.
The funny thing is, when a buyer comes along and submits an offer, the CAR Residential Purchase Agreement stipulates that homes in California are sold in their current “as is” condition. So, whether you’ve just done an extreme make over, or nothing at all, the buyers are agreeing to purchase the home as it is on the date of the submission of the offer.What happens next is a completely different story every single time.
Once the buyers and sellers agree on the price and terms, then the real fun begins. The sellers have to provide their disclosures and the buyers get the opportunity to do their home inspection. On the basis of this information, several things can happen.Here are a few examples.
The seller counter offer stipulates that the seller will not make any repairs required for a clear termite report, but no termite inspection has been completed. The buyer came up on price to meet the seller’s bottom line number, and escrow is opened. The disclosures report that the upstairs master bathroom leaks and should not even be turned on during the home inspection. Once the termite report comes in with $4500 in necessary repairs, including fumigation, and the home inspection report shows the master shower will need to be completely rebuilt, and the floor if the garage is disintegrating due to some chemical element in the soil, the buyer asks for a hefty price reduction. The seller reluctantly agrees and the transaction keeps moving forward.
The buyers conduct their home inspection of the home built in 1966 and discover that the AC unit is working great, it just isn’t cooling the kitchen and the dining room – the rooms the farthest from the AC unit. A disconnected duct is discovered, which explains why the master bedroom is also not getting cool. After three different HVAC experts take a look at the system and propose three different solutions, ranging in price from $350 to $10,000, the buyers and sellers cannot reach an agreement and the buyers elect to cancel the escrow and move on to another house. The duct has been repaired and the home inspection report now becomes a part of the disclosure documents the seller will provide to the next buyers. Would you also disclose the bids from the HVAC companies?
The sellers disclose to the buyers that the brand, new largest capacity on the planet, washer and dryer were installed in the remodeled bathroom before the wall was replaced, and to get them out, so the sellers can take them with them to their new house, the wall will have to be torn down to remove the machines. After getting estimates to tear down and rebuild the wall, the sellers offer the machines to the buyers at no additional cost.The buyers agree, even though they also have relatively new machines and the escrow closes on time, as is.
I'm Leslie Eskildsen, Realtor. BRE No 01320195
Email me. Leslie@LeslieEskildsen.com
Helping you make the right move in Mission Viejo, Coto de Caza, Rancho Santa Margarita, Irvine, Laguna Niguel, Laguna Hills, San Juan Capistrano, San Clemente, Laguna Beach, Newport Beach, Dana Point, Corona Del Mar, and other Orange County communities.