Expert: Karyn Foley - 11/18/2003

Question
We are currently emptying, cleaning home of deceased Mother, to sell and settle estate. We would like to get it over quickly, and with as little effort as possible, so we can move on.
We know of a problem with the house. It has some serious plumbing related problems. The bathroom tile floor is cracked badly, the tub surround (plastic enclosure) is in terrible shape, falling loose from the walls.. etc. A plumber at the house recently told us that the house needs a complete new bathroom ( approx $4,000.00) and that the floor was rotten and could cave in at any time.
My question... should we go ahead with the repair, or is it feasible to seel the house "as is"... and just deduct cost of repair from sale price?
Thanks for your time.

Answer
Dear Kirby:

I had the same type of situation last year when my own Mother had died, and I was the executor of the estate.  I also was one of the listing agents, having selected another agent to assist me as she was a specialist in the community where my Mother had lived.  I painted the interior and the exterior trim, making the house as fresh and appealing as possible.  While I did no updating, leaving it for the new owners to decorate and add on as they may have wished, I made repairs and adjustments throughout so as not to scare anyone.  

Also, there is an issue of safety.  The new Buyer can buy "as is" but not make repairs in a timely fashion and end up hurting himself/herself or a family member.  Then you may face some liability and accountability, even though the Buyer was made aware.

I feel that for four thousand dollars, it would be a wise investment.  But consult a real estate specialist in that area.  This agent may know about many other homes that have had the same situation, and that the public there can handle this types of problems in their normal course.  Maybe even advertise it as a "contractor's or handyman's special".  Or, try it for one month without fixing it, and see what happens.  If you have negative responses, then take care of it.

Be careful to not only disclose all that you know, in terms of receipts and reports, but insist, in writing, that the Buyer get all of the Buyer's own inspections done with regard to the house as a whole, and that bathroom in particular, and the Buyer is to rely on his investigators.  Be prepared, then, at that point, to be asked to pay for some-all of the forthcoming work that would be in store for the Buyer.  That would be a negotiatible item that would be presented after the price had been agreed upon, and the Buyer does his due diligence.

I feel that an attractive product brings the best results.  Especially since that seems to be the only problem about which you are concerned.  

Please let me know what you decide, and what the end results turn out to be.  A good question!  And, my sympathy on the loss of your Mother. This is a hard time for you, and a hard job.  But, good luck and I know you will get through it just fine.

KARYN FOLEY

Selling "as is" still obliges you to disclose all and any problems and defects that you know about.  The bathroom may scare some, and not scare others.  But why limit your marketplace?  I would suggest that you immediately hire a pest control inspector, seeimg if the home has termites, dry rot, or any other type of infestation that is prevelent or occurs in your state.  Your bathroom sub floor or even flooring may contain dry rot which makes the problem contagious.  What you spend you will get back in terms of price, and you are selling a product that has no major future expenditures for the new buyer of which you are aware.