Dear Monty: We have an offer on our house. There are several contingencies, one of which is a home inspection yet to be scheduled. When the buyers initially looked at the house, they asked if we ever had any condition issues. I told them we hadn’t. We had a leaking roof several years ago, but I didn’t mention it because we had it repaired. They got wind of it and are now backing out of the deal. I knew it was a little white lie at the time, but I didn’t think it was a big deal. What can I do to rekindle their interest?
Monty’s Answer: Inspections began in the 1970s because enough home sellers either didn’t realize the importance of their home’s condition, forgot about a defect or learned it could reduce the value of their home and concealed the problem. Enough homebuyers complained that folks with backgrounds in home construction saw an opportunity. The fact that real estate consumers shell out hundreds of dollars to understand a home’s condition shows how important a homebuyer believes this information to be.
A Homebuyer’s Perspective
When potential buyers view a home, they immediately look for anything they must replace. When they find one item, it triggers an instinct in many to intensify the search for more defects. Because most homebuyers (and sellers) have little or no experience in construction or home maintenance, hiring an expert to examine what, for most, is their most significant single investment is the logical solution. Many buyers would need to learn how to discover defects. But living there, the seller knows a lot. Ultimately, fear of defects gets down to a matter of trust.What You Should Have Done
You should have told the truth. The roof is a costly component. It might have led to more questions if you had revealed the repair. How long ago was it repaired? Who repaired it? Was it a reputable contractor? But when you conceal it, the first thought that pops into their head is “What else didn’t they tell us about?” If the roof starts to leak the day after closing, or a year after closing, you will likely pay for the new roof and legal fees to defend yourself. However, losing their trust now is the main consequence. If you told them about it and they did nothing, now the problem is with them.Some Options
No. 1: Reverse love letter: If love letters work, send the buyer a note and include a copy of a new seller condition report. Tell them you are sorry and ask for another chance.No. 2: A guarantee: Apologize and tell them you'll escrow X number of dollars for a year. They get the escrow if anything happens to (name the components).
No. 3: Offer to replace the roof (after you buy an inspection). That is what caused the problem. Eliminating the problem may help you regain trust.
No. 4: Look for a new buyer. Complete an updated condition report that contains the roof repair. Depending on your local market, you can recover the cost.
