How to handle issue with Flip project POST SALE

How to handle issue with Flip project POST SALE

Realtor · Decatur, GA · Member since 2017 · 135 posts · 92 votes

Having an issue with a past buyer that's making my blood pressure go up. Would love any feedback.

We flipped a house that was a full gut renovation (hoarder, cat house) and sold it last May (pics here). The buyer was nervous about purchasing from a flipper so requested a "contractor warranty" that warrants the improvements we made (not wear and tear; only failure or things not working as they should). Even though I did not want to continue my relationship with this buyer, we agreed to get the deal done. 

Flash forward to now. They have a very slow leak in their downstairs ceiling and can't identify the source (it's a 2 story townhome). Our realtor team is acting as the mediator between us and he believes it's condensation from the ductwork, which is in-between floors. The HVAC was newer and was one of the few things we didn't replace during this renovation (we did have it inspected). Both my realtor and the buyer (now homeowner) are telling me we "SHOULD" have insulated the ductwork during the renovation. 

I was not aware of that, and it could very well be true, but because this was not something we altered during the renovation, I don't feel it's our responsibility to address it now, after the home is sold. We were never asked about the ductwork prior to sale. 

I certainly don't want to get into a big project of tearing out the ceiling drywall and insulating it now. I also don't feel that we should be held responsible for identifying the source of the leak. If it turns out to be indeed an issue with the work we performed, I would pay to fix it.

Thoughts, ideas, etc? Feels like such a sticky situation to me, but maybe I'm overreacting. 

Any advice is appreciated here. 

Sara

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Mike CumbieBusiness Member
REALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes
8y

Dear Mr Smith,

CC: Mr Jones happy Vally REALTY

I will be happy to send one of our contractors over to identify the cause of the leak you are experiencing in your home. Our standard rate is $89 an hour which will be waived if it is determined that the issue is with construction that we performed on the residence. Once the issue is identified we can proceed from there. If it is determined to be an issue with the materials or quality of our work, we will gladly cover all costs associated with making it right. If it is determined to be an issue with a system not addressed during our renovation you will be free to choose any contractor you would like to re-mediate it at your expense. Is Thursday at 11:00 AM an acceptable time for John to come over and look at the issue? 

Thank you 

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  • Flipper/Rehabber · Alexandria, VA · Member since 2014 · 461 posts · 262 votes
    8y

    I feel your pain. Been there, done that, still doing it. I won't go into details on a forum such as this though.

    I think you that you are correct in that you should assume liability if it can be determined that your work caused the problem. Personally, I like the approach of "I can send Joe Contractor over to take a look and attempt to determine the cause of the leak. If it is something that our work caused then we will address it accordingly."

    Be careful though because if you assume liability where you have none that buyer will call you back for every little issue he/she finds with the house going forward. Everything. They will treat their house as if it should have been brand new when they bought it. In one case I couldn't touch the issue (which the homeowner clearly caused himself) and he and his Realtor were PISSED at me. So I simply said "Here are the names and phone numbers of two local plumbers who have outstanding reviews from customers. I am sure that they would be willing to look at the problem and provide you with options on how to fix it". 

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