Will a bank make repairs prior to closing on a foreclosure?

Will a bank make repairs prior to closing on a foreclosure?

If you would have asked me just a few weeks ago if prior to closing a bank would make repairs for a buyer that requests it, I would have said good luck; not going to happen. They are always strictly sold “as/is” and they will make no repairs. But I must say I’ve been pleasantly surprised these last few weeks.  I’ve had 3 separate transactions with banks that have worked out well for the buyers.

 

Bank-Owned Property #1 was old; around 40 years old.  For a property this old, a buyer usually has to get a “4 point insurance inspection” completed.  This report shows that the water, electric, and appliances work – all the major stuff.  If these things are not working, it’s almost impossible to get homeowners insurance on a house.  My buyer needed this report and it was lacking a lot of things, to the tune of almost $1,000 in repairs.  We just flat out asked the bank if they would repair this list of items and pay for it on their dime. They agreed!  My buyer was able to get the successful report completed for insurance and all was good.

 

Bank-Owned Property #2 had no working air conditioning. We made a fair offer and were able to come to terms and get it accepted.  Then we pressed the bank to get the air conditioning fixed.  They said they’d look into having it fixed, but wouldn’t guarantee anything.  Sure enough, after hounding them for almost two weeks -and they never agreed to it in writing- they sent out their A/C contractors, fixed the problem and the home is in a nice cool condition as I write this! The best part is that my buyers didn’t have to pay for it!

 

Bank-Owned Property #3 is a very nice house that my buyers got a great deal on! After the inspection report came back, it was obvious that the pool wasn’t working. The pump was out, which couldn’t allow us to test the pool heater – which can be $3,500 to replace.  We pressed the bank and wrote an addendum saying that the sale of the home was contingent upon having all the pool equipment in working condition prior to closing, otherwise the buyer could walk away.  Would you believe the bank signed it?

 

I’m shocked at the success I’ve had lately with getting banks to make repairs.  It seems as though they’ve become a little more realistic, which is good for us all.  I hope it stays this way.  Happy buying!

 

Gabe Mellein was voted a Top Real Estate Agent – Exceptional in Service and Overall Satisfaction by Gulfshore Life Magazine in 2012 and 2013.  He is the broker of Gulf Pointe Properties, Inc and has over 9 years experience in the SW Florida Real Estate Market.  He is a member of The Naples Area Board of Realtors, Bonita Springs – Estero Association of Realtors, Realtor Association of Greater Fort Myers and the Beach, The Florida Association of Realtors, The National Association of Realtors, and is nationally certified in Feng Shui for Real Estate.  Need real estate help?  Please contact Gabe at:  239.825.2234, Gabe@GulfPointeProperties.com  or www.GulfPointeProperties.com

 

Leave a Reply

Your email address will not be published. Required fields are marked *