New roof, who pays Buyer or Seller?

Time to vent a little bit…

So we’re selling our house and the buyer of our house had a home inspection done. It came back saying a few pieces of sheeting were in bad shape and the bathroom fan needed to be vented out. The shingles are also in need of being replaced.

So who do you think should spring for the new roof? There was talk about the roof being questionable when we were negotiating price, but nothing detailed was discussed.

A related question. If the buyer (who is a friend of my wife, note to self: NEVER DO BUSINESS WITH A FRIEND AGAIN) tells you they want you to replace the roof at no cost to them, what would you think? They also mentioned they were not negotiable on this, at all. Just looking for opinions…

Thanks,

Matt

If I’m buying a house, I would expect the roof to be in good condition. If I’m selling a house, I would expect to have to put on a new roof in order to sell it. (Assuming that it is a required repair) If the home inspector has indicated to them that the roof may not keep the water out, then I would expect to pay for the roof. Your other option is to not sell the house, or accept less for it. If the shoe was on the other foot, what would you expect.

It depends on the price you negotiated and the conditions placed on that offer. But it really comes down to your bargaining position: if they want to back out on their offer, my bet is that they could (conditional offer) and you’d have to find a new buyer. So how easily could you find a new buyer? Would you need to put a new roof on the house or incur other significant costs to do so? How bad does your wife’s friend want the house? How interested are you in preserving that friendship? Make sure you consider that last factor…

John

Every situation is different, but we sold out last home ourselves, the buyer had a realtor. After the inspection they came to me with a list of 8-10 things that they wanted fixed. Having a lot of interest at our open house, I told them that I was not going to do anything.

The realtor relay to me that the buyers didnt really want to ask for anything because they feared losing the house. But that he ensured them that it doesnt hurt to ask.

I did a few things for them that didnt cost much, just because it wasnt a big deal, but I did not accept any obligation to do anything.

If they looked at the house when the roof was in the current condition and agreed to purchase it, I would expect them to replace it themselves. If you need to close for another purchase, I may negociate to split the cost, but no way do I pay the total cost. I would rather find a new buyer.

my wife (who is a realtor) would have suggested negotiating an allowance.
did you use a realtor?

I have to agree with SteveO. Negotiate the roof. You can have some money put in escrow or make her pay it outright, but I don’t think you are going to get off with no out of pocket.

Note: As a contractor, I have seen some major roof damage caused by people venting bathrooms into attics and not dierect venting out of the house. NOT A GOOD IDEA. The warm moist air from the bath will cut down shingles life 10-15 years and ruin sheeting. If left long enough, it also caused mold which is terrible for any kids, pets, etec.

Sorry, I will get off my soapbox now. Good luck with the sale.

The roof failed my home inspection and the seller agreed to pay half.

You may also need to disclose those findings to future buyers as well.

If there is a offer to purchase in writing, and the purchase is contingent on a clean report from the home inspector, then your buyer has an way out of the offer. If there is no contingency, and your buyer wants to back out, then you more than likely would be able to keep their earnest money. If there is no offer in writing, then you have to decide if the friendship is worth it. It is all going to come down to what if anything was written in the offer.

If this sale falls through because of the roof situation, you have to think it won’t be the only time it happens if it is inspected.

Scott

matt, what does the purchase agrement say ? if this is a condition of sale, then i would counter to split the costs. if they won’t do it, then i’d find another buyer, or re-roof and jack up the price x amount. we just bought a home last fall, and the owners had marked that they “owned the kinetico water system”, which all appliances stay in the house. come to find out they “rent” the system. they had to buy the system for us,about $3000, as this was on a signed purchase agreement, by both parties. depends on where your at with the transaction really. if you have a signed agreement, then it is binding in a court of law.

If you have a purchase agreement drafted, and within that purchase agreement, it states purchase is contingent based on inspection, and the inspection reveals a “major” deficiency, then the buyer may back out.

If there is no verbage stating such, then the buyer looked at the house and made offer as is.

Once the purchase agreement is drafted, there is no “negotiating” after.

If the buyer backs out of the purchase because you do not want to put a roof on, and that verbage (home inspection) is not in the purchase agreement…….then the buyer may be subject to a lawsuit if they do not buy your house.

A purchase agreement needs to be understood by all, that it is a contract.

Now, 99.9% of the time, when people back out of a purchase, after the purchase agreement is drafted and signed by all parties, it is forgiven. However, be aware that I said 999 out of 1000. There is still about 1 out of a 1000 that the seller will sue the buyer for backing out of a purchase contract for non-legitimate reasons.

Primarily, legitimate reasons lay in financing. For example “Gary” wants to buy a house, makes an offer. Purchase agreement is drafted with closing date 60 days after drafting of purchase agreement. In the mean time, Gary looses his job and does not qualify for financing. That is excusable.

Now, for the home inspection. If a home inspection has been done on your property, and there are deficiencies……You MUST, by law disclose those deficiencies………If you do not, and sell, and the new buyer has problems, you are financially liable.

So, if this buyer backs out, you will have to disclose the condition of the home, based on that specific home inspection that was done. With that said, you have a right to a copy of that home inspection, if you do not have it.

However, if it were me selling the house, and after the purchase agreement was drafted, and it wasn’t contingent based on inspection, I would make the buyer put on a new roof.

As for doing business with friends. I think that is all good, but you just have to understand that business is business and friends are friends.

Thanks for the feedback fellas. There is a purchase agreement, contingent that the home inspection comes back clean or we negotiate a compromise on any issue. She did give earnest money which will be returned if they want out.

We are disclosing the roof issues to anyone calling or coming to see the house. We are willing to give a price reduction or pay for the roof, whatever the buyer wants.

I have no problem doing the roof, I have 3 friends that are roofers so I’d be willing to pay for the labor, some material, and some dumpster. If I do it we should both be off the hook for less than $1000 each. She blew her top on Saturday, started making rude and insulting comments. It turns out she didn’t like the Open House sign in our yard. I read my purchase agreement and I wasn’t doing anything wrong. Besides she said she wasn’t paying for any of the roof and wasn’t negotiable at all. Coming from a friend of my wife I took that as she wasn’t able to afford the repairs. Since we’re scheduled to close on our house in a month I figured I better cover my butt and find a new buyer, hence the sign in the yard. She has since said that this was her attempt to start negotiations, pretty poor attempt. My opinion is that she was trying to get a free roof, that won’t be happening. As you can probably already guess, maintaining the friendship is not high on my wife’s priority list. Sad but true.

Thanks for letting me vent, I’m feeling better already!

Matt

“With that said, you have a right to a copy of that home inspection, if you do not have it.”
Actually, you don’t have a right to that home inspection. It was a service provided to the buyer, and not the seller. You may be able to get a copy of that inspection, but only if the BUYER agrees, and you’ll probably be charged for it.

I’ve sold a couple things always stated ‘as is’ if the buyer wants something fixed by me I tell them cost plus my trouble added to selling price. Nobody liked that idea but bought what I had anyway. If your moving cause something is bad do not sell it as good.