How can a seller guarantee this?

Question

We’re under contract on a pool home in Florida. After two inspections on the swimming pool, we were informed that the fiberglass coating has failed. The pool needs to be drained, sanded, and resurfaced or coded.

seller is offering 10k but then wants us to take the home as is. I say no way.

it’s going to cost anywhere between 8000 and $12,000. Obviously, we are insisting that the seller take care of this however, I would love feedback on how you would go about it.

Worst case scenario, they drain the water and find cracks or more damages and costs rise. I’m not even remotely interested in this.
Po companies are booking to three months out so this can’t be done until after close. What would you do?

Russell Brazil · Answer

You're saying anywhere from $8-12k, and they are offering $10k. Seems perfectly reasonable to me.

Steve Osowicz · Answer

@Kim Durst Potentially you could take the $10k, then have another $10k (or whatever amount you feel covers your cost if there are further issues) held in escrow. You'd have to find a real estate company, title company or attorney that has an account they would be willing to hold the funds in (which might be a little tough). Then have a few pool companies give bids, you both agree on the final bid and if the cost from the pool company comes in under the amount, the seller gets their escrowed funds back less the cost of the repairs, if not the funds are used to complete the repairs when the time comes.

Tom Gimer · Answer

I'm with @Wayne Brooks... never let the seller do the work.

There is no incentive for a seller to do anything other than the bare minimum necessary to satisfy the terms of the agreement. They will do so at the cheapest possible price and the shoddy work will become apparent after the excitement of the purchase wears off.

Wayne Brooks · Answer

@Kim Durst Actually, as long as the cash out of pocket as opposed to it being baked in the price is not a problem….I would Much prefer to take the price reduction and fix it myself. When you have a seller fix it, they will spend the least possible and any shortcuts on quality (quality of product, prep work, workmanship, etc) may not be apparent, causing problems down the line. The “make them fix it” approach often causes problems.

Chris Seveney · Answer

@Kim Durst

Hold $20k in reserves, close and get it fixed in 3 months and what’s left over goes back to prior owner

John K. · Answer

Hi Kim,

I understand your hesitation, although I don't believe a repair with the pool would be something that could spiral out of control too much. The seller credit sounds reasonably--I wouldn't let it hold up the deal if you really want the home.

John

Raymond J. Rodrigues · Answer

@Kim Durst, speak to your lender about the escrow holdback first. Often times when a lender sees an escrow holdback on a final closing disclosure, they will not allow the title company to hold it for that reason. There are other ways to go about it, just have to be creative. Happy to share my experiences with you!

John Ojo · Answer

Good on you for taking your time. I would get 3 different bids and a good bid would be exactly what the company would charge to fix it. The sellers don't want to give any more money away that is why the want to stop the bleeding and have you take it as is. If they now know of items within the home that can affect the desirability they must disclose that (I assume thats the same in Florida).  Lean on your agent, and see what examples he or she can provide. Negotiate Negotiate and Negotiate.

Kim Durst · Answer

Thanks everyone! I wasn't sure if holding in escrow was an option. I feel much better about that!

Kim

How can a seller guarantee this?

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