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Ask Jay, July 16
“I am looking at putting an offer in on a house listed for $134,900. The house is vacant and I believe it has been on the market for over 6 months. My Realtor is saying I should bid 134,000 with the seller paying my closing costs and paying for a 2/1 buydown. I want to try and offer less. What do you think?”
Brad and Janet – Leesburg
Dear Brad and Janet,
Your closing costs should be approximately $4,000 or so (depending on what type loan you get, how many points, etc.). The 2/1 buydown (assuming it is an annual buydown) will cost the seller about $4,000, too. By paying for these costs, if you offer a price of $134,000, the seller is netting the same as he would on if he accepted an offer of $126,000 and paid no costs. If you think the house is worth less than $126,000, then make a lower offer. If you think it is worth more than $126,000, then you would be getting a deal with your Realtor's suggestion. Your Realtor provides advice. You decide what to offer based on that advice.
“What are the terms of the pest inspection? After a few years, are the sellers responsible if termites are found?”
Steve and Jane – Hamilton
Dear Steve and Jane,
Assuming you had a pest inspection performed when you bought the house, the terms of the guarantee would be with the pest inspection. You will probably find it with your other documents from when you bought the house. Expecting the seller to be responsible for something a couple of years after the fact is not really reasonable. The only way a seller should be liable is if they knew of an infestation but did not disclose it.
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