How To Close On A House That Needs A Little Work…

Good Morning!

I’ve written about this topic before – and I think it deserves mentioning again.

You would be amazed how many people (including realtors) that don’t know this is a way to solve this common problem when you buy a house.

Problem: You are in the process of buying a house that needs minor repairs – but the seller refuses to do them – what do you do?

This situation happens a lot, especially on bank owned homes.

The simple answer is to use an escrow hold back. …an escrow hold back is a small amount of money that is held out of the seller’s proceeds from the sale to make the repairs.

You have to write the escrow hold back right into the contract – under special provisions. To avoid having to rewrite this clause – be specific. Your realtor will need to write – “An escrow hold back in the amount of $______ will be used for (specific) repairs.”

One key with the escrow hold back is the repairs need to be minor – and they can’t take that long to finish. …an average amount of an escrow hold back is $1,500 to $5,000.

Knowing how to solve minor repair problems on an offer – can sometimes make the difference between getting a great deal on a house, or not buying it at all.

If this situation comes up with your deal – just give me a call – I can help you out.

If you would like to see if you qualify for a mortgage right now – click here and fill out this simple and quick application.
That’s it for today!