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Hermine Damage on Prospective Home

Posted on 9/3/16 at 6:03 am
Posted by Furbs311
South Carolina
Member since Oct 2005
516 posts
Posted on 9/3/16 at 6:03 am
Wife and I have been very interested in a vacant property that needs complete updating but is in a great neighborhood with a the size lot we've been looking for. Ideally we'd want to add an addition or carriage house for an additional guest bedroom, and I've spent the last week talking with a mortgage broker and a few contractors to see what kind of offer we wanted to make.

Well, while the storm wasn't too bad here in SC, wife and I decided to drive by it yesterday to "see how it does in the rain" since we weren't sure exactly how water drains on the property, and found a huge pine tree had fallen across the house. I've spoken with the listing agent and he tells me the owner has already talked to their insurance company, it's not a total loss, and the repairs should be done by November. Said they would be open to a contingent offer on the repairs which works for us because we need to sell our home first anyway.

My question is this--since we wanted to pretty heavy renovations anyway, is there anything we can do to combine efforts here? I hate to think about it being brought back to the size and condition it was, for us to only have to go in and redo everything if we purchased it. I'm not trying to take advantage of a bad situation for the owner, but I wondering if there's a way this could benefit both parties?


Posted by swanny297
NELA
Member since Oct 2013
2189 posts
Posted on 9/3/16 at 8:23 am to
I would let the current owners insurance pay for the structural damage and make sure that is repaired especially the roof.
Posted by Furbs311
South Carolina
Member since Oct 2005
516 posts
Posted on 9/3/16 at 8:52 am to
For sure. But for example, the far left hand side is the master bath, which we wanted to gut, expand anyway. So the insurance company will rebuild on the original footprint and we'd just tear it all out. Guess I'm looking for a way to kill two birds.. Make necessary repairs AND renovate.
Posted by hombreman9
USA
Member since Feb 2009
3781 posts
Posted on 9/3/16 at 10:21 am to
If you get it under contract, you could probably negotiate with the seller to renovate the damaged areas to your specs
Posted by wickowick
Head of Island
Member since Dec 2006
45809 posts
Posted on 9/3/16 at 8:45 pm to
The owner of the home will be paid for the loss in 2 different checks. The first check will be the deprecated amount, the second check after the repairs are completed. Depriciation can be minimal or pretty heavy depending on a ton of variables, including the insurance company and the adjuster. Deprivation might be able to be recovered even after the home is sold once repairs are compted,

The roof will probably be tarped very soon. Depending on the amount of roof damage it couple be a repair or replacement.

If you don't plan on changing the roofline, let them fix/ replace the roof. A repaired roof could be a point of negotiation. It is very possible to have them reduce the cost of damages from the purchase price.
Posted by Furbs311
South Carolina
Member since Oct 2005
516 posts
Posted on 9/4/16 at 6:10 am to
Good info, thanks. I think this is the route we are going to go down. After talking to my realtor (don't worry, he's one of the good ones) he suggested the owner wouldn't likely accept an offer contingent on the roof being fixed AND my house selling. I think I'll list my current house and if I get under contract, I'll be in a much stronger position to negotiate on this property
Posted by Mr.Perfect
Louisiana
Member since Mar 2013
17438 posts
Posted on 9/4/16 at 8:22 am to
quote:

he suggested the owner wouldn't likely accept an offer contingent on the roof being fixed AND my house selling.


Why?

You said in the OP that they would accept a contingent offer and you said they are planning to make repairs. So why is your agent telling you this?

(He might be like all the rest after all)
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