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What to Do When Your Dream Condo Doesn’t Pass Inspection

By Mike in Downtown San Diego Real Estate with 0 Comments

A Condo Failing Inspection is Not the End

If you’ve found the Downtown San Diego Marina District condo of your dreams, discovering that this unit is unable to pass inspection could be devastating. Fortunately, there are a number of things that can still be done to ensure the deal goes through. This is especially true when sellers are eager to close and are flexible in terms of how they want to resolve inspection issues.

Negotiate a Credit with the Seller

In many instances, when you negotiate a credit with the seller, this person will agree to take over a portion of your closing costs that you would otherwise be responsible for. The negotiation process is invariably one of compromise, with both parties working to find a fair, feasible way to financially account for the problems that have been discovered during the inspection. When sellers lack the financial ability to pay upfront for repairs, negotiating a credit could be your best bet.

Purchase the Condo in As-Is Condition

There is always the option of taking the Downtown San Diego condo for sale in an as-is condition in spite of any issues that the inspector has identified. In this instance, the final purchase price will be the cost of the condo plus the total costs of all required repairs. You may have the option of rolling the additional repair costs into your home mortgage, if your lender is willing and if you value the condo enough to take on this additional debt. When opting to buy condos in an as-is condition, however, it is vital for buyers to avoid paying for repairs until they have actually taken possession of the related properties. Should a deal fall through after costly repairs have been made, getting the related funds back could prove difficult.

Ask the Seller to Cover Repair Costs

Sellers with greater levels of financial comfort could be willing to pay for the costs of repairs upfront, before closing occurs. This will limit the effective purchase price of the condo and simplify your dealings with third-party lenders. When new knowledge of problems arises, renegotiating a reasonable sale price is also an option.

Take Advantage of the Contingency Period

If the required repairs are extensive and the seller is unwilling to budge, you can always walk away from the deal. California is a contingency-period state, meaning homeowners have a full 17 days to have properties inspected and to finalize their purchasing decisions. You can walk away from your offer at any point during this time without sustaining any major financial loss. If you’re working with a lender to fund this sale and passing the inspection is essential for securing the financing you need, walking away could be necessary. Fortunately, most sellers are willing to perform any reasonable and requested repairs in order to make these deals go through.

The home buying process can be stressful to say the least, that’s why working with an experienced and reliable real estate agent is of utmost importance. If you’re having second doubts about your current agent or have been going it alone, give us a call at (619) 649-0368. 92102 Urban Living specializes in real estate in Downtown San Diego, and we are here to help you find the dream residence you’ve been searching for. ')}