You could also offer to fix their concerns and add the cost to the selling price so that the repairs are paid for at their mortgage interest rate. You can't do more than the bank appraiser will approve though. But be sure you get enough earnest money to cover it in case the deal goes South. "the roof is 15 years into it's 20 year guarantee and the A/C runs well so at this price I will not be replacing them, however if you want them replaced I will be happy to have it done and add the repairs to the cost so that it is paid for in your mortgage costs" That way the roof and A/C would have their own new warranty and you don't have to pay for it.
If the AC is working, and the Roof isn't leaking, it is doubtful the lender would require repairs. They don't even get the inspection report. The inspector works for the buyer and is looking for any little detail that will help the buyer adjust their price. I wouldn't replace the AC, as they've seen the house, and had the opportunity to see the AC before they ever offered. I doubt they didn't notice it was an old unit. The roof? Hard to believe it is in that bad of shape if it isn't leaking. 1) Remember that replacing either adds value to the house. Your willingness to accept their price was on the basis of the age of the house, including the roof & AC. 2) If you are willing to compromise, try to lower the selling price rather than than giving a repair/closing cost allowance. The realtor wants you to do an allowance because he gets his % from the top.
Thanks everyone for sharing your experiences and advice. I talked with my realtor and suggested she go back with a hybrid of what folks here seem to be suggesting. I offered to either cover the roof deductible if the insurance will cover ail damage repairs, or the buyer can accept $4k off the sale price of the house and buy the house as is. I had already contacted my insurance agent about possible hail damage to the roof so an adjustor will be here next week to inspect. If its covered under insurance, my deductible will be just what I would be willing to pay for any additional repairs. Unfortunately, that will push past the 10 day so if that is the direction they want to go we'd have to extend the ten days to past the date the adjustor can inspect the roof and determine what is covered and at what deductible. Or... the buyer can take the $$ off. Or, we can walk away, put it back on the market. I'd have the roof redone for my deductible, but raise the sale price to reflect the added value of a new roof and disclose the A/C. The buyers supposedly loved the house, and they are relocating from Germany (which added to the length of close since additional paperwork needed in the relocation). So hopefully they accept. But I think that the agreed upon sale price ($11k under asking, which I believe fairly priced due to age of house and roof) minus $4k represents the lowest I would be willing to sell the house at. So hopefully everyone comes out of this feeling whole. Otherwise, back on the market. Again, thanks all...
It's been about ten years since I bought my first used home (a 7 year old home at the time). I recall the inspection report had a lot of items marked that needed attention or repair. I also remember a lot of it didn't get repaired. I guess it is the basis for backing out of the deal if they don't get done. But, I don't remember any secondary inspection to ensure everything was done. I just remember moving in after the previous homeowner already moved out and seeing stuff that was brought up for repairs not being done. At that point, I guess I had no recourse. A lot of it was very minor and the major things were fixed. It felt like, somewhere along the way, I missed a step in the process of verifying the repairs were actually done. I'm not sure how or when that was supposed to be done. Honestly, I can't remember all the details. But, like I said, it was little stuff. Next time, I guess I need to do a better job on that part of the home-buying process but I was new and was relying on guidance of others throughout the process. I could see it really being a problem, though, if something big was not repaired. I would say a lot of it was like K Lo Lo said above....the inspector was pointing out stuff like "this should be a pipe coming out here instead of metal flex hose because metal flex hose can rub here and split". Of course, that wasn't fixed.
tell your real estate agent to help pay for it. they will be eager to make the deal go through and should be willing to help out.
To be fair to buyers out there... most buyers have no clue what they're looking at. Not everyone is super handy. Which is why the process is how it is with contracts usually providing for a very small option period fee to allow for an inspection by someone who does have a clue. It's also why seller's can say "AS-IS" from the get-go and provide as much relevant information in a disclosure as they deem necessary.
Not sure if anyone has mentioned but the buyer has the upper hand here since you would have to resist and disclose anything on the inspection report if you refuse to negotiate with them and try to resist.
