We last left off talking about being involved in a transaction. Let’s look more into solving problems in transactions.
Bob Nelson, Eugene real estate investment broker
Marcia Edwards, Eugene residential real estate broker
Marcia Edwards: Say you’re on the buyer’s side of a residential purchase. You’ve had your inspections completed, and you realized you have a roof that has less than a year’s life remaining on it, and you got a furnace that’s working today but may not be working tomorrow according to the inspector.
Bob Nelson: Unfortunately, the offer that you wrote most likely stated I’m offering on the property in its as is condition. Unless you had spotted these things in advance and built in some type of an allowance, most likely, you reduce the price to allow yourself the opportunity to cure those defects and not be above the “market.” So, you’re going to pay a certain amount to the seller and a certain amount to a contractor to fix the issues of concern. Most likely, you didn’t write the offer that way. You wrote it as is. Now, you’re discovering what as is means.
Marcia Edwards: That’s right. So, with that awareness, we want to get enough information to be able to get to the other side of this problem. That usually means more research and investigation before you approach the seller, and you want to propose a solution when you reveal the problem, which they may or may not be aware of. They may have had the roof cleaned last year, and the roofer up on the roof said probably not much life remaining on the roof. They may already know it’s in play but possibly not.
Bob Nelson: It’s the issue now that becomes a cold shower as you find out what the cost will be for a new roof, and the seller finds out the price adjustment you would like to have as a concession for dealing with that new roof. Now, you’re going to turn to the seller most likely and say replace the roof. They’re going to tell you, “There’s the door. Don’t let that knob hit you in an uncomfortable position as you leave.” In other words, good bye.
Marcia Edwards: They might say it that way, but you’re right.
Bob Nelson: Well, they can say it other ways too, however.
Marcia Edwards: The lens of a seller or a seller’s agent, the conversation turns to whether any reasonable buyer would request the same. Is it something you’re going to expect if you lose this buyer, will you have the same conversation again, or will you be able to work without it? For example, that furnace is still operable. A seller might say, “You know what, it’s working. It’s not broken. Why would we have to fix it?” They may push back on that thinking the next buyer would not be concerned.
Bob Nelson: It depends if we have brokers involved. If you’re dealing directly with a seller, you’re the buyer, oh my goodness. What’s most likely going to happen, the seller’s going to say, “Step aside. I’m going to see if another buyer will come in and not have those issues.” So, you’re not going to be listened to very well.
Marcia Edwards: Get good counsel. We’ll give you some more coaching on this next program.
Join Eugene, Oregon, real estate experts: Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investments, and Marcia Edwards, Residential Real Estate Broker with Windermere Real Estate, daily at 5:30 on KPNW for the “Real Estate Today” radio show.