# Question about repairs



## Becka (Mar 15, 2008)

We've FINALLY found the right house (I hope this is it) and need your input since we're not really experienced in this. Instead of making a few necessary repairs, the seller wants to give us $500 at closing and let us do the repairs ourselves.

The repairs include:
plumbing in two sink drains that need traps
an outside fuse box that needs to be grounded
a small hole in the roof under the shingles--if someone stepped on it their foot could fall through
ground fault electrical outlets needed in kitchen and bathroom
exhaust pipe from furnace needs replaced
bathroom exhaust needs to go outside, not into the attic

Hubby says he can do the ground faults in the kitchen and bath, and the bathroom exhaust fan. We will need to hire the other work done, especially the plumbing and electrical grounding outside. Hubby is not stupid or lazy, just a computer guy who doesn't know much about carpentry. We want this done right. He could try, but it might cost us more in the long run to fix any mistakes later.

Would $500 cover all this? Should we ask for more since having to do it ourselves means more work on our part and a later move date? Any advice appreciated. You are all so helpful with stuff like this.


----------



## po boy (Jul 12, 2010)

Doubtful..

If you are financing the home, you will be in violation of RESPA by getting the $500 after closing unless it is on the settlement statement. In addition, if you are financing it, the lender will require that the sales price be reduced by the $500.


----------



## Deb862 (Jun 22, 2005)

Almost definitely not. I would ask that at least some of these things be taken care of by the seller and then take a credit for teh few small things hubby can do himself.


----------



## NorthCountryWd (Oct 17, 2008)

po boy said:


> Doubtful..
> 
> If you are financing the home, you will be in violation of RESPA by getting the $500 after closing unless it is on the settlement statement. In addition, if you are financing it, the lender will require that the sales price be reduced by the $500.


She did say "at closing". Lender would also probably require the health and safety issues be repaired. If it's for FHA, everything on the list is a minimum property requirement.


----------



## Txrider (Jun 25, 2010)

Becka said:


> We've FINALLY found the right house (I hope this is it) and need your input since we're not really experienced in this. Instead of making a few necessary repairs, the seller wants to give us $500 at closing and let us do the repairs ourselves.
> 
> The repairs include:
> plumbing in two sink drains that need traps
> ...


I doubt $500 would go that far...

You can ask for more, you might not get it though. All up to you and how good a price your buying at.


----------



## po boy (Jul 12, 2010)

NorthCountryWd said:


> She did say "at closing". Lender would also probably require the health and safety issues be repaired. If it's for FHA, everything on the list is a minimum property requirement.


 I understand that, but the money will not change hands til after closing....and the sales price will be reduced.


----------



## Becka (Mar 15, 2008)

NorthCountryWd said:


> She did say "at closing". Lender would also probably require the health and safety issues be repaired. If it's for FHA, everything on the list is a minimum property requirement.


Correct. We are going FHA.

In the contract, the seller agreed to make up to $500 in repairs. My guess is the seller doesn't have the money to make the repairs, but they all have to be done in order for us to get our mortgage loan.


----------



## starjj (May 2, 2005)

IMO that $500.00 will not even begin to cover the costs. I hope you had a home inspection.


----------



## Becka (Mar 15, 2008)

starjj said:


> IMO that $500.00 will not even begin to cover the costs. I hope you had a home inspection.


Yes. These are all on the inspector's list. They must be fixed in order for us to get the loan to buy the house.


----------



## Head Roller (Sep 24, 2010)

I have to agree... I dont think $500 will cover it... The issue of particular concern to me is the electrical items... I can almost guarantee you that if you have an ungrounded box and non-GFI boxes in your kitchen/bath, you have other electrical issues that should be explored. This is coming directly from experience!! I would also be concerned about the furnace exhaust. Have you considered asking for a Home Warranty from the buyer?


----------



## Becka (Mar 15, 2008)

Head Roller said:


> I have to agree... I dont think $500 will cover it... The issue of particular concern to me is the electrical items... I can almost guarantee you that if you have an ungrounded box and non-GFI boxes in your kitchen/bath, you have other electrical issues that should be explored. This is coming directly from experience!! I would also be concerned about the furnace exhaust. Have you considered asking for a Home Warranty from the buyer?


Yes, we asked for, and got, a good Home Warranty.

The home inspector is the best in the state for plumbing/electrical problems, and says the rest of the electric is ok as it was done within 5 years ago. So, no real worries there. We're just trying to figure out how much it will cost to fix this stuff.


----------



## po boy (Jul 12, 2010)

Becka,

You are in a catch 22 as the loan cannot close before the repairs are done. In addition, since the seller wants to give you the money after closing means he has to use the money from the closing to pay you the $500.
It is not going to close unless the repairs are done. Counter off for all the repairs to be done by the seller. Maybe he can borrow the money from a relative...

Good Luck,


----------



## blufford (Nov 23, 2004)

_a small hole in the roof under the shingles--if someone stepped on it their foot could fall through_

Your roof may have some moisture issues. I had that happen to me and I had to replace the whole roof.


----------



## starjj (May 2, 2005)

Glad you got an inspection. I lived and learned on that one. I still don't think it will come close to covering the cost. Could well be double the $500.00. Did your inspector give you any idea of costs? I know they are not in the estimates business but I would find it hard to believe he would think $500.00 would cover it.


----------



## Haven (Aug 16, 2010)

I have had bad luck with home inspections. Both times they missed major issues - a carpenter bee infestation in cedar siding on first house, and an improper roof installation on a second home. Make sure you go over everything yourself in detail regardless of what the inspector says.

Also, make sure you have a septic inspection. These can cost big $ to repair and replace and it is VERY common to find serious issues once inspected.


----------



## NorthCountryWd (Oct 17, 2008)

Since it is for FHA you should look thru this-

http://www.georgiaappraiser.com/hud/

Look under "FHA Quick Tips" and you can see what is required. Your loan will not close without these things fixed. The definitions are kind of vague, but it's mostly "health and safety" items. Assume any potential health or safety hazard will be conditioned for repair.

There is a few programs that allow for repairs (203k, Homepath), but not sure how the loan end works, maybe Po Boy could shed some light. I've done the appraisals and final inspections for them.


----------



## Mickie3 (Aug 28, 2010)

Becka said:


> Yes, we asked for, and got, a good Home Warranty.
> 
> *The home inspector is the best in the state *for plumbing/electrical problems, and says the rest of the electric is ok as it was done within 5 years ago. So, no real worries there. We're just trying to figure out how much it will cost to fix this stuff.


Any good inspectors that I have ever heard of give an estimated cost of repairs along with their reports of what is needed. Did the inspector give you a figure? If not, where did the $500 figure come from?

Note(s): Home warranties generally will not cover the cost of repairing anything associated with items that are on the inspector's report. 

Are inspector's licensed in your state?


----------



## po boy (Jul 12, 2010)

NorthCountryWd said:


> There is a few programs that allow for repairs (203k, Homepath), but not sure how the loan end works, maybe Po Boy could shed some light. I've done the appraisals and final inspections for them.


There is a $5000 min. for repairs on a 203k

http://www.hud.gov/offices/hsg/sfh/203k/faqs203k.cfm


----------



## RosewoodfarmVA (Oct 5, 2005)

Sorry to disagree with all the naysayers here but $500 should easily cover such things, especially if you intend to do some yourself. I do handyman work for a living, the plumbing parts would be about $30, with $40 in labor, fuse box would be $30 for some #6 solid copper and a ground rod, another $30 for labor, probably the small hole in roof is the result of covering over a vent or stovepipe or some other such protrusion that was not needed anymore when the roof was replaced. Go in the attic, screw a piece of plywood over the underneath of the hole, then go above and measure and put in a wood patch over the plywood leveling the hole with the rest of the roof surface. Replace shingles. No biggie... GFI's assuming the wiring is new with ground, as you say it has been replaced in the recent past, this would be $15 for each GFI and another $40 in labor, if all the receptacles are on the same circuit you can find which is the first receptacle and replace it only, then the others are protected by that GFI if wired properly. Exhaust pipe might run $100 depending on how long the run is and how bad access is to the pipe. Bathroom exhaust just requires hole-sawing a hole in the soffit, running the flex pipe over to it and venting through soffit, again no biggie. If I were hired to do these things I would certainly do it for less than $500....

In my opinion if you've found the 'right' house these minor repairs should not cause a bump in the road.



Becka said:


> We've FINALLY found the right house (I hope this is it) and need your input since we're not really experienced in this. Instead of making a few necessary repairs, the seller wants to give us $500 at closing and let us do the repairs ourselves.
> 
> The repairs include:
> plumbing in two sink drains that need traps
> ...


----------



## Nomad (Dec 19, 2002)

The roofing could run into money if someone else has to do it. You will have to remove some shingles down to bare wood and replace any wood that is damaged. I bought a house back in the 70's that had a fairly flat dormer roof with what I thought was a small leak. I was given $100 at closing to fix the problem. It turned out that more than 40 square feet of the roof deck was water damaged and so soft you would sink in if you walked across the roof. I just tore off all the shingles and replaced the wood before reshingling. Fortunately I had help from friends and family, so the cost was minimal. 

Nomad


----------



## Becka (Mar 15, 2008)

Mickie3 said:


> Any good inspectors that I have ever heard of give an estimated cost of repairs along with their reports of what is needed. Did the inspector give you a figure? If not, where did the $500 figure come from?
> 
> Note(s): Home warranties generally will not cover the cost of repairing anything associated with items that are on the inspector's report.
> 
> Are inspector's licensed in your state?


Yes, he is licensed, certified, and actually travels nationwide teaching other inspectors, from what I've heard. He thought we could do it all for under $500, but that is if we do the work, not hire it out. The $500 figure comes from what the seller is willing to pay for necessary repairs in order for us to buy the home (per FHA.)

I did not know that about the home warranties not covering items on the inspectors report. Thank you for pointing that out.


----------



## Becka (Mar 15, 2008)

Rosewood, your post was very helpful. Thanks for describing in detail how you would do the hole in the roof. That is the one thing that might really cause us trouble. As Nomad said, it could be a bigger problem than just one small area. The inspector said the roof must be replaced within 3 years or so as it's nearing the end of its usefulness. Part of the problem is that there is no attic fan. Hubby says he will try to install one himself as that was not "urgent" like the other repairs. In the near future we will probably get a metal roof.


----------



## Mickie3 (Aug 28, 2010)

Becka said:


> Yes, he is licensed, certified, and actually travels nationwide teaching other inspectors, from what I've heard. He thought we could do it all for under $500, but that is if we do the work, not hire it out. The $500 figure comes from what the seller is willing to pay for necessary repairs in order for us to buy the home (per FHA.)
> 
> I did not know that about the home warranties not covering items on the inspectors report. Thank you for pointing that out.


If the inspector said you should be able to do it for 500 or less, I would think you should be able to do it. He has seen what needs to be done in person, whereas all of us are picturing things differently and any project can cost a lot different based on what the specific needs are.



Becka said:


> Rosewood, your post was very helpful. Thanks for describing in detail how you would do the hole in the roof. That is the one thing that might really cause us trouble. As Nomad said, it could be a bigger problem than just one small area. The inspector said the roof must be replaced within 3 years or so as it's nearing the end of its usefulness. Part of the problem is that there is no attic fan. Hubby says he will try to install one himself as that was not "urgent" like the other repairs. In the near future we will probably get a metal roof.


A couple of things want to bring up I learned long ago about roofs:
1) Nothing is cheap or predictable about them. 
2) Attic fans are cheap insurance and can actually extend the life of a roof 2 or more times than a roof that doesn't have a fan.
3) Metal roofs are absurdly expensive in my experience. The only places I have them are where they were already on the house I currently live in and the only reason they are still there is that they are tin roofs from long ago and will most likely outlive me. Not sure if you have to maintain newer metal roofs or not, but I do know mine need to be painted every few years and the coating (aka expensive name for paint to be used on metal) is neither cheap nor particularly easy to apply and prep for. You have to remember the ads you hear about all the great things about metal roofs are written by people who want to sell you one. 

Good Luck!


----------



## tiogacounty (Oct 27, 2005)

Sorry, but as a builder, I see too many red flags. Fact is that a home inspector provides a service that is of marginal value. They report on what they see, and have a lot of language in their contract that protects them from being responsible for basically anything they think, say, or write. You know that somebody has been a real butcher here. Typically it's the homeowner who is either too cheap to do anything correctly, or incorrectly believes that they are capable and competent. Signs like missing traps and unvented fans are just the tip of the iceburg. The panel that needs a ground is a bit curious. Don't be so sure that the inspector has a clue here. IF it is the main service panel, and ungrounded, it would be unusual at best. If it is a sub-panel, supplied from the main panel, it doesn't get grounded with a ground wire or electrode, it gets grounded back to the main panel. Personally, I haven't had any real positive experiences with home inspectors. I have seen them make really huge mistakes that really hurt buyers. I have seen them dwell on insignificant details while missing gigantic and glaringly obvious problems. Best to take their reports with a grain of salt, and the knowledge that it's a worthless piece of paper, IF you run into issues that they either missed, or misrepresented, and I have seen far too many examples of both problems. Most of the issues listed are fairly cheap and east to fix. However, I always tread very carefully if there are lots of signs of shoddy workmanship. It's what you find after dig that's the real problem, not the dumb stuff that is easy to catch.


----------



## Guest (Oct 8, 2010)

Looking at your list of repairs the only thing I see that could get really expensive is the roof repair . If you have an attic I would think that the amount of roof damage could be determined from the attic area .


----------

