Hi there! I'm a new buyer with some questions. We were reviewing a "disclosure form" from the seller. In it, they disclosed that the roof needs to be replaced and that they (seller) will place funds in escrow to assist buyer with repairs after closing. Is this a common thing to do for damages/repairs discovered by the seller? Can I instead have a clause in initial offering to have seller to fix it prior to closing? Please advise..

I should also add that I am meeting with my agent in the morning to possibly put an offer on the table.

Thanks a bunch!!

Personally, I would rather get the money at closing so I can use the roofer of my choice, and get the warranty on it. If the seller has to fix it now, they could use a roofer that isn't very good, or the warranty may not transfer (labor portion...shingles, are usually covered by the manufacturer.)

Just get a couple of estimates on the roof before the option period expires, so you can make sure there is enough money there for repairs/replacement.

As an agent, it is much better to have the buyer get the money for repairs, rather than have the work completed by the seller, as that leaves one more thing that can cause a problem down the road (buyer not happy with repair that was done).

You know I never thought about the warranty not being transferable. I really like your idea much better. I all to unfamiliar with how repairs escrow works any way.

To springboard from TX's post, there are a lot of different grades of roofing material. A seller will almost always take the cheapest option while you, as a buyer, can evaluate all of the choices while reviewing prices, warranties and quality of both the work and the contractor.

@ PA Roadkill, you are also very correct about the quality. I have also further learned that this particular property may need new window or window seals as the owner is uncertain. However they are replace per the inspector's findings. Other work that has been done is they had the sidewalk mudjacked and they are currently having some repair work done to the chimney. I know this house sounds bad but it is 19 years old and have made many upgrades. Very beautiful, just pretty much normal wear and tear. I guess my biggest concern is the immediate repairs. I also just found out that because I am using a VA loan that all repairs have to be completed prior to closing unless weather is not permissible.

Does this sound about correct? Also, if the repairs need to be fixed before closing, can I still pick and chose my contractors at the owners expense?

You can ask. Worst they could say is no.

[quote=jbsnadb]You can ask. Worst they could say is no.[/quote]

I agree whole heartily. According to my research it would not be beneficial to just replace window seals if the windows are older because the window life itself would not outlast the seal. I guess most people would look to replace the entire window. With this particular home, there is a substantial amount of windows and replacing them all could run upwards of 10-20k. WOW! I don't see too many first time buyers jumping into a home with that amount of start up repairs. I am almost certain the buyer would not drop his price or have that kind of money but I told my husband if we make an offer that is feasible for us and he doesn't accept, the the home was not meant to be.

You can ask, but as others have already mentioned (and also in my opinion) having the money for your own use is much more beneficial. It will allow you to shop around for a roofer you deem qualified, will ensure that there are no issues transferring warranties, allow you to act as a direct contact instead of a third party, etc. I would much prefer the money be placed in escrow, from a buyer's OR agent's perspective.

I would hurry up and get estimates since the repairs have to be done before closing. Have they already come up with a $ amount they are willing to put in escrow for the roof? If, so try to get an estimate in that budget so you can get going quickly.
Good Luck!