Repairs before closing?

Question

The vacant HUD home we are buying has some plumbing issues (2 locations with leaks in pvc pipes in the basement). I had a plumber give us an estimate of $290 to repair the leaks. However, we can fix the leaks ourselves for $25 in materials. We want to fix this problem before closing because our lender will make us use a licensed contractor if the issue is included in our inspections. This is because of the 203k loan.

What are your thoughts on this? Should we just go in and fix the leaky pvc pipes for $25 before inspections and closing?

What are your thoughts on this?  Should we just go in and fix the leaky pvc pipes for $25 before inspections and closing?

Jeffrey K. · Answer

FERNCO

Account Closed · Answer

The decision to complete repairs before closing a deal is really a judgment call. In your situation, I would say yes because of the nominal amount it is going to cost you, and the amount it will save you in the long run. You may see if the seller will pay for it as well so you are not putting money into a property you do not actually own yet.

Kendra T. · Answer

Best case scenario:  You go and fix up the property, do a good job and save more money and expenses later.

Worst case:  Your plumber messes up or something goes bad, the realtor/bank discovers you were doing some unauthorized work and come after you.

It's probably safer to fix the problem after the house is legally yours.  You can get the seller to credit you for the repair.

Gregory Harris · Answer

They could refuse to sell you the property but they won't because it's hard trying to find buyers these days.

Jessica Hood · Answer

What is the worst that could happen if they found out we did the repairs without permission before closing?

Frank Adams · Answer

No question in my mind what I would do. I'd inform that we need to take the "plumber" back in to double check, or that he thinks he left some tools there. The the "plumber" does the repairs. Not only to you save the money, you mitigate further damage.

all cash

Gregory Harris · Answer

If you have access to the property I would just go ahead and do it to avoid the hassle and the extra expense.

Jessica Hood · Answer

Our realtor mentioned that we are not supposed to do any repairs before closing.  That we could get in trouble.  What could happen if we do anyway?  It's so ridiculous to me to pay hundreds of dollars for something so simple.

Jessica Hood · Answer

Oh... and yes.. we do have access to the property.  They know we have been having plumbers and other contractors come in for estimates.