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#221329 - 04/21/08 03:32 PM Selling a home with a broken furnace....
LordusRealty Offline
Member

Registered: 07/31/06
Posts: 254
Loc: USA
Is this okay? I was talking to an agent today(who does not deal with REOs) and he said he thought it wasnt allowed to sell a home with no working furnace. I havent personally dealt with this before but that cant be true. Can it?

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#221335 - 04/21/08 03:54 PM Re: Selling a home with a broken furnace.... [Re: LordusRealty]
beansie53 Offline
Member

Registered: 04/10/08
Posts: 258
Loc: Michigan
It's not that it isn't allowed. It largely depends on how the buyer is paying for the home. If it is a cash deal it doesn't matter what kind of condition the home is in. Most of the time the property condition can get in the way if the buyer is securing an FHA mortgage for example where there are certain guidelines that have to be followed in regards to the condition of the home. Sometimes depending on the bank that you are dealing with they may opt to fix the furnace or anything else that needs to be done to make it so the home is "mortgageable", these repairs are also known as "lender required repairs".
_________________________
REO/BPO's are my game, Jack is my name.
5th Generation Broker
Est. 1922

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#221353 - 04/21/08 05:22 PM Re: Selling a home with a broken furnace.... [Re: beansie53]
alice Offline
Member

Registered: 07/10/03
Posts: 267
Loc: Illinois
Sounds like a new agent showed your listing.

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#221393 - 04/21/08 07:05 PM Re: Selling a home with a broken furnace.... [Re: alice]
ggwwttre Offline
Veteran Member

Registered: 06/15/04
Posts: 1187
Loc: Watsonville, CA, USA
The only thing that I can think of is that it's technically not "habitable" without a furnace. That would make it un-rentable but not un-sellable.

Put a note on your disclosures. "Furnace is not working and should be fixed prior to habitation."

Of course, it's late April, and that furnace probably isn't going to get fixed till Labor Day... not your problem.

Do yourself a favor and don't get any authorities involved...if it gets red tagged you can't get a loan on it.

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#221399 - 04/21/08 07:22 PM Re: Selling a home with a broken furnace.... [Re: ggwwttre]
esalechick Offline
Member

Registered: 03/13/07
Posts: 155
Loc: Colorado
I just closed one that did not have a working furnace. I disclosed it in the MLS so agents would be aware. The buyer was VA so they wrote the contract to specify that the bank would install a new furnace prior to the appraisal so it would pass VA requirements. If the deal is FHA some appraisers will check the furnace but most will not. The buyer can then take care of it or again, write the contract to specify who will pay for a new one.

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#221402 - 04/21/08 08:05 PM Re: Selling a home with a broken furnace.... [Re: esalechick]
Mr. Foreclosure Offline
Major Contributor

Registered: 09/01/06
Posts: 2834
Loc: upstate New York
I see things like this frequently. Yes, it is saleable but probably only for cash, construction loan or rehab (like 203k) financing. If that is all that is wrong with it and you can fix or replace it under $5000 you might be able to use a repair escrow in conjunction with the financing.

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#221447 - 04/21/08 11:06 PM Re: Selling a home with a broken furnace.... [Re: Mr. Foreclosure]
UpNorthGal Offline
Veteran Member

Registered: 01/07/08
Posts: 664
Loc: MN
I had a home sell and I didn't know the furnace didn't work..oops the home had froze and I couldn't turn any utilities on with the water issue.It sold conventional and had no problems closing, ice all over the walls and everything...got a call from the buyers agent this week telling me the furnace doesn't work..had to explain that it isn't my problem(in a very nice way).They bought the home as-is..

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#221456 - 04/22/08 12:13 AM Re: Selling a home with a broken furnace.... [Re: UpNorthGal]
Makin' Money Offline
Veteran Member

Registered: 04/01/06
Posts: 1280
Loc: Indiana
I have a 4 unit with 4 missing furnaces and 4 missing hot water heaters.

There is no law against this! Some lenders won't finance it but it doesn't mean it's not allowed.

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#221485 - 04/22/08 02:04 AM Re: Selling a home with a broken furnace.... [Re: Makin' Money]
Delicious Cake Offline
Major Contributor

Registered: 12/10/05
Posts: 2702
Loc: CA
I have one where the woodstove is missing (only heat source). I keep getting calls from agents (who know it is bank owned) that go like this:

Agent: "what can you tell me about the woodstove?"

Me: "it's missing"

Agent: "what else? How can you sell this house? You can't sell it like that"

Me: **sticks fork in agents eye for calling so many times asking this question**

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#221489 - 04/22/08 02:08 AM Re: Selling a home with a broken furnace.... [Re: Delicious Cake]
REODayton Offline
Major Contributor

Registered: 07/27/06
Posts: 3720
Loc: Dayton Ohio
I consider it a bonus when there IS a furnace. Wait to long, I guarentee there will not be one.

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#221522 - 04/22/08 04:37 AM Re: Selling a home with a broken furnace.... [Re: UpNorthGal]
texasgal Offline
Veteran Member

Registered: 05/26/07
Posts: 596
Loc: Texas
 Originally Posted By: UpNorthGal
...got a call from the buyers agent this week telling me the furnace doesn't work


It took them until the end of April to figure this out?? What did they do for heat during the colder months?

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