Inspection contingencies give buyers the opportunity to get their earnest monies back when properties don’t pass inspection. Depending upon the nature and magnitude of the issues identified in these investigations, buyers may or may not want to back out of an offer they put in on a condo for sale in Downtown San Diego. Fortunately, there is a lot that you can do to remedy this problem, no matter what side of the offer you happen to be standing on.
Appeasing the Lender
When buyers have their purchases financed by mortgage lenders, failing to pass inspections can bring the purchasing process to a grinding halt. In order to get things back on track, sellers can agree to make the necessary improvements or repairs in order to appease the related lenders. Otherwise, they will need to renegotiate the sales price or terms so that buyers are getting fair deals and good overall value. If there are code violations or other major issues that significantly impact property values or habitability, these things must be resolved before the sale can come to a close.
It is not uncommon to have problems identified during condo inspections that are the responsibility of adjacent unit owners or HOAs. When these issues arise, sellers should submit written requests for repairs along with information detailing why the repairs should be expedited. Even if an issue originates outside of the unit and is not the condo owner’s responsibility, the resulting property damages will need to be addressed or accounted for in the sales price.
Renegotiating and Making Concessions
There are often minor issues identified in condo inspections that raise red flags for sellers. For instance, a hot water heater in a condo may be functioning optimally, but could be nearing the end of its lifespan. In instances like these, buyers and sellers have to make reasonable judgment calls and determine which remedies, if any, are applicable to the situation. An aged hot water heater that still functions should not have the same impact on sales prices or sales terms as a non-functioning air conditioner.
Honoring Reasonable Requests
Irrespective of the magnitude of problems, it is important for both buyers and sellers to remain open to honoring reasonable requests. Buyers can ask for credits for repairs that offset their closing costs, lower sales prices, one-year warranties or other benefits that will limit their future spending on property improvements or product replacements. Whenever third-party lenders are involved, however, all resulting arrangements will need to fulfill the minimum requirements of these companies in order for funding to be approved.
Taking the Unit Off the Market
In rare instances, units could have extensive damages that require costly and time-consuming repairs. Reviewing an inspection report with your Downtown San Diego real estate agent when problems like these are discovered is vital for determining whether or not now is still the right time to sell. A seasoned agent can recommend a new sales strategy such as targeting all-cash buyers who are willing to make repairs on their own or simply taking the unit off market and bringing it up to par before regrouping and listing again. Both strategies have their own benefits and drawbacks. Consulting with your agent will help you find the sales tactics that are best for you and your goals.
When buying or selling real estate in Downtown San Diego, there’s no need to wade through the process alone. Working with an experienced agent can provide you additional insight and support, and your agent can offer you all possible solutions—and the pros and cons of each–should an issue arise. Reach out to us today at (619) 649-0368 for more information. ')}