Assumed repair costs for damaged floor
Q. We just had a professional inspection of the home we are buying. Our home inspector found moisture damage and wetness in the floor of the upstairs bathroom. The subfloor is buckled, and he said the black stains on the baseboards are likely to be mold. He estimates the repair costs to be about $2,000, so our agent recommends asking the sellers for a $2,000 credit and having the repairs done after we move in. Is this a good idea, or should we ask the sellers to have the repairs done before the close of escrow?
A. There are two problems with accepting a price reduction for an estimated amount and having the repairs done later. First, no one knows the actual extent of the damage beneath the subfloor or how many concealed wood members need to be replaced. Until the subfloor is removed, the actual damages are an assumption. It may be more prudent to have the damages fixed now, rather than encountering additional costs later.
The second concern is the mold issue. Mold can have far-reaching financial implications, depending upon the type of mold and extent of the infection. Before assuming the cost of remediation, a professional mold survey should be conducted prior to closing the transaction.
Q. I am presently selling my condo and accepted an offer that is $10,000 below the listing price. The buyer's home inspector reported loose tiles in the stall shower, the repair cost was estimated to be $3,500, and the buyer wants me to pay for this. Is a home inspection report a repair list for the seller or can I say that I already dropped the price 10K and refuse to do the repair?
A. A home inspection report is definitely not a repair list for the seller. It is information for the buyers. However, it is a common practice for buyers to request that sellers make repairs of some defects that are found during a home inspection. Whether you agree to these requests is a matter for negotiation, but you are not obligated to make repairs unless the purchase contract requires you to do so. The buyer may or may not be willing to purchase the property as is. This is something you'll have to discover as you negotiate.
Q. We just had a sewer backup in our basement, and the same happened to our next-door neighbor. It turned out this was caused by a back pressure problem in the main sewer line in the street. The people at the sewer district are installing backwater valves to prevent this from happening again. Do we need to disclose this to buyers when we eventually sell the home?
A. When you sell your home, you should disclose that there was a past problem that was repaired by the sewer district. You should include documentation from the sewer district along with this disclosure. State that you cannot guaranty against any future problems and that the buyers are advised to consult the sewer district for further details.
• To write to Barry Stone, visit him on the web at www.housedetective.com, or write AMG, 1776 Jami Lee Court, Suite 218, San Luis Obispo, CA 94301.
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