Would you make an offer “as is” and then do an inspection? Would you make an offer “as is conditioned on certain repairs/treatments?” If you had to choose one strategy vs another, which would make more sense?
My role
As a buyer’s rep, my goal is to get the best possible price for my clients while covering their interests. Also, do you know the difference in insurance cost on a home that sells with a damaged/destroyed roof vs. one with 10 year old shingles that were slightly damaged? We are seeing an $800 difference in annual insurance cost for a 10 year old roof vs a new roof on ~1300 sq ft homes in Temple, TX right now. You can bet that I am pushing for new roofs for my clients!
The beauty of an option period is that buyers can take a few days to research their specific property to determine the repair cost, insurance cost, and potential maintenance issues. I advised a client last week to cut the contract (and lose inspection and option money) to preserve his earnest money when a seller was being unreasonable in roof replacement. It’s ultimately better to lose $800 on a home than be stuck in a contract where a roof needs replaced and sellers mistakenly believe the buyer should pay!
Of course, I do not want my clients to lose money. That’s why I’m diligent about deadlines and very responsive. We keep constant communication and work together. I help gather bids, estimates, and coordinate all manner of tradespeople throughout the process.
Which sellers are willing to negotiate?
On a separate transaction, the seller has been willing to replace the roof and I’m working to protect my clients interests on repair credits outside of the roof, in addition to ensuring that the roof is fully replaced – not just haphazardly repaired and quickly covered up again. I am proud to represent my buyers!
So, is it better to make an “as is” offer, or require specific repairs/treatments in today’s market? Depends. I am calling listing agents before every offer and getting a feel for how they plan to handle storm damage before making any offers.