General

Sometimes blogging replaces therapy (and it is a lot cheaper, too!), so I have to share my real estate struggle of the day with a broken heating system:

I am helping a Buyer on a short sale, and the house in question has been vacant for a while, pretty average condition, but a great fit for my Buyer’s needs, and the location and the value of what it’s under contract at is fabulous!

Problem: the heat is broken. Now the crazy problem is that a Lender won’t finance a house that doesn’t have a working heating system. Yes, you may buy a house in Florida without air conditioning and that’s fine, but is has to have a working heat system. I met a licensed AC guy at the house, and his findings are that the AC works great (I knew that, doesn’t help my Buyers), but the heat strip is burned out (my heart sinks and I am thinking possibly big $$$). He gave me a quote to repair the unit for $185.-, that’s total, parts and labor. Initially I am relieved as he tells me the relatively low amount. I have forwarded this to my Buyer’s Lender today.

I genuinely have no idea where this story will end. Will the broken heat be the end for the Lender? Will the Seller pay $185.- on a house that he’s upside down on already? Will the Buyer pay $185.- on a repair for a heating system in a house he doesn’t even own yet, and just in order to buy it, so that he can then later rip it out and put an entire new unit in (which is what he is planning to do)?

I will go put this topic to rest for now, and will update my blog with a comment as soon as I know the resolution to my $185.- dilemma of the day!

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