Monday, August 11, 2014

Hey, My Buddy is a Roofer...

by Osman Parvez

The moment we stepped into the backyard, I saw it.    My buyers didn't notice but I sure did.    

At some point, the current (or previous) homeowner decided it was time for a new roof but didn't want to pay the additional expense to remove the old one.   It's not uncommon to see multiple shingle layers in Boulder, but have you ever seen composite shingles installed over shake shingle?  


It's not easy being green
Now you have.   Something tells me this installation wasn't to code.  Check out the moss and rot!

My buyers were contemplating making an offer on this house in the University Hill neighborhood, but after I pointed the roof, they wondered what other short cuts the seller may have taken.    Of course, any offer would now need to take into account a full roof replacement and any lender would probably want to see it done before closing.    

The house was cute but with a half dozen or more attractive options in the $800,000 to $1,000,000 range, it was easy to focus attention elsewhere. My buyers weren't in a rush, they could afford to be patient. 

Buy side advice:  Think about how obvious inspection issues will likely play out before writing the offer.  A competent buyer's agent can help you.  While the contract protects your earnest money, you will still incur significant due diligence costs.  The seller may or may not budge when you later ask for price reductions or repairs related to inspection issues, flushing your inspection costs into the proverbial money hole. 

Sell side advice:  Either correct the problem now or be prepared for the issue to arise later on inspection.   By law, any knowledge of the issue must be described on the Seller's Property Disclosure.   Obvious and glaring issues should always be corrected before listing - it's far cheaper when you can control the choice of contractor and the timeline.  As the seller, you also look like a rock star when you fix stuff properly and fully disclose the repair to potential buyers.   

Remember, ethical behavior engenders trust - a critical factor in high dollar negotiations.  

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