After many PCS and moves with the Army.

We are finally settling down.

We just entered the contract phase and in our option period.

We got the inspection report and there a quite a bit of wear and tear things that need to be looked at. But mainly it's a new roof that is needed.

Is that something the seller should claim from their insurance and have the done before we move in?

Aggie Therapist said:

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After many PCS and moves with the Army.

We are finally settling down.

We just entered the contract phase and in our option period.

We got the inspection report and there a quite a bit of wear and tear things that need to be looked at. But mainly it's a new roof that is needed.

Is that something the seller should claim from their insurance and have the done before we move in?

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I would ask them to replace it or give you an allowance to do so taken out of the purchase price. How they fund it is up to them. Easiest if it has storm damage is to go back to their insurance for it, but if not, I would tell them you want to take $x off the purchase price to pay for the new roof.

Thanks.

Yeah Round Rock here. I'm moving 5 mins away in the same neighborhood and we had a massive hail storm recently

Aggie Therapist said:

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Thanks.

Yeah Round Rock here. I'm moving 5 mins away in the same neighborhood and we had a massive hail storm recently

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If they are going to replace it, see what their insurance offers and ask them to let you work with the roofer if necessary to make sure you get the roof put on that you want, not the ones the insurance company is willing to pay for. It may be in your interest to pay a little extra to get a better roof put on versus what the insurance company is willing to pay for.

You want to negotiate while in your option period. So get going.

I tell my clients take the home inspection and divide into two buckets. Bucket A is for negotiations with seller in the Option period.

Bucket B is a trip to Home Depot. Say some caulk is old on window for example. You can fix that yourself.

Bucket A has 5-6 items.
1. roof
2. water heater
3. electric panel
4. foundation
5. plumbing
6. floors (sometimes)

These need to be seller fixes for the most part. There is room in seller concessions in they pay some or all closing costs but this is a finite amount. I cannot squeeze a roof or foundation in theses costs. Closing costs are 7-9K most transactions. Roof what 15K? 25?

If the seller insists just to give consessions then after the 7-9K we have to reduce the loan amount. But you still have repairs now paying out of pocket if you have the cash.

With the recent hail storm there is a very good chance the insurance co will accept the claim. Then use Jason here on the site to do the work.

Call or email me if you need more info. My contact info is in my profile. Or you can ask here if you want

Steve

Aggie Therapist said:

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Thanks.

Yeah Round Rock here. I'm moving 5 mins away in the same neighborhood and we had a massive hail storm recently

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Which neighborhood?

Brushy Creek

Cool, I am in RR west and of course we got hammered by the hail also, just didn't know if we would be closer neighbors.

Cat Hollow to be specific.

We got destroyed by the hail storm. Looked like a war zone because hail going through siding of houses. Looked like someone took a machine gun to our house

What's your agent telling you about this?

We basically did exactly this. Don't nickel and dime with the b bucket items or else the seller is going to get upset.

We're going for 15k in concessions and for them to put in a claim for the roof. Needs a new fence and for the outside deck to be restored, new toilets and plumbing work.

Higher number for the counter. But the seller didn't even counter us on the offer and we asked 15k below because of the current shape of some things in the house. Been on the market since September

Again you will have 7-9k closing costs. So 15-8=7k left over. If you are using a TREC contract. Where does the 7 go? Either rate buy down or loan buy down. But repairs are still needed.

Interested rate buy down.

2% lower first twelve months
1% lower year 2

Good Morning Steve,

Talked to a Lender today. Gave us a break down and a couple scenarios. We ended up getting 15,000 in seller's credit from our negotiations with the seller.

But more importantly I wanted to talk about interest rates.

My FIL is our financial advisor and he was showing us some numbers that were pretty dang low compared to would this lender was saying. Lender was saying 6.25% would be a possibility and possibly a little lower.

But my FIL was saying to find one at 5.7……is he off the rocker?

Edit: NM. My FIL was showing us interest rates based on buying points and a big upfront costs.

All is well.

a new roof is $15k+ most likely and can you even get insurance on this house with a beat up roof?

Sellers may have pocketed the insurance money on the roof already, your agent can check that.

Hell nah

They are putting a claim in.

I do not advise buying down the interest rate in this market. The odds of refinancing in the near/medium future is high. So the money uses to buy down is wasted. I would reduce the loan amount with the 15k.

Buy downs on 30 year conventional loans is not to your advantage unless you are in the loan for at least 6 years. Here is the math.

300k loan. Rate 7%. Payment 1996.

1 point is 3000. That gets you 6.75% rate new payment of 1946 so 50 per month savings

3000 / 50= 60 months or 5 years to break even. So 6-7 years in the loan to really benefit. That's a long time to not refi.