The Space Coast Beach Blog: August 2014

Email Questions: Why Does Our Home Need a New Roof?

I represented the seller for this deal. The insurance company required a new roof before they would insure (as did six other insurance companies)...even though the roof was in good shape and 15 years old.

 

The Question:

Jeffrey,

We have a question about the inspections and demands of the buyers. We strongly feel the roof is fine and the buyers inspector seems to agree. Tell me why our home needs a new roof? Can't we send them a copy of the inspection stating the roof is in good working order?

Thanks,

John and Mary

 

My Answer:

John and Mary,

we are running into this situation more and more. Unless we have a cash buyer the mortgage company will require insurance be placed on the home. The insurance companies are calling all roofs (unless they are tile or metal) 15  years or older to be replaced before they insure.

I did call quite a few insurance companies and I did find a couple that would insure...but the rates were (pardon the pun) through the roof. Normally in a situation like this I could suggest negotiating a discount for the roof and having the buyer replace it after closing. That will not work in this case because the insurance company will not insure until the roof is on...no insurance, no mortgage.

I have found three quality roofers who will replace the roof next week. The prices range from 9k to 11k. My suggestion is we go back to the buyer and ask for part of the cost to be paid by them. I can write an addendum for a $5000 higher price that will include the new roof. I can present that to the buyer agent and see if they will contribute.

Your other options will be:

1. Say no (ending the contract on finance contingency...they cannot get a loan).
2. Put the roof on and eat the cost.
3. Pay a portion of the buyers closing costs (to cover the extra insurance for say a year...and tell them it will be up to them to get a roof).

Regards,

Jeffrey

 

The FYI:

The buyers and sellers decided to split the cost of the new roof evenly. They chose the $9000 roofer and we adjusted the price of the home up $4500.

 

Jeffrey DiMuria

Waves Realty
Broker/Owner
2018 Melbourne Ct, suite 206
Melbourne, FL 32901

Phone: 321.223.6253         

e-mail:  Jeff@WavesRealtyFL.com 

Email Questions: Why Does Our Home Need a New Roof?
share
I represented the seller for this deal. The insurance company required a new roof before they would insure (as did six other insurance companies)… even though the roof was in good shape and 15 years old. The Question: Jeffrey, &… more
Space Coast Restaurant Review: Olive Tree Greek Grill in Viera, FL
share
The Olive Tree Greek Grill is a fast casual Greek style restaurant located in the Avenues Mall, just west of I-95 and north of Wickham Rd in the master planned community of Viera FL The location at the Avenues is their second restaurant,… more
Turtle Krawl 5k Just Around the Corner in Indialantic, FL
share
For those of you who are new to the Space Coast of Florida, you will quickly find out that the beaches here are the most fertile in the entire world for hatching turtles. From the end of March into September you will have a fairly easy time… more
Space Coast Restaurant Review: the Leaning Tower of Pizza in Melbourne
share
Just about everyone loves pizza! Here on the Space Coast we have many Italian (read NY style) pizza restaurants. Most of the better pizza comes from the many beachside options you will have when choosing a favorite. Leaning Tower of Pizza on… more
Please Like My Space Coast Facebook Page :)
share
I am trying to reach 100 likes for my facebook page… and I am a good portion of the way to my goal… but I need some help. My page is loaded with great info about Florida's Space Coast, local restaurant reviews, neighborhood profiles, area… more