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.
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?
John and Mary
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).
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.
2018 Melbourne Ct, suite 206
Melbourne, FL 32901