Advice from Nashville's Financial Guru Dave Ramsey

Dave Says
By Dave Ramsey
Author of Financial Peace and The Total Money Makeover
11/2/2004

House has sold but not closed?

Dear Dave,

We’ve just sold our house, but it has not closed yet. The buyers sent in a third inspector on Monday. They ordered the first inspection for their own benefit. FHA sent a second inspector and he wanted someone to inspect the roof, so he recommended this third inspector. I don’t know why they didn’t just go back to the first inspector. The FHA guy said if the first inspector said the roof was OK, then it’s OK. That inspector told us the roof was alright for another 3-5 years, but wrote on his inspection report that he wasn’t sure if it was OK because it was snowing the day he inspected. Now this last inspector is saying we need a new roof.

The people buying the house do not want us to have the roof put on. They want to do it themselves, but want us to give them $1,000 for it. Should we do this?

Lee in Grand Rapids, MI



Dear Lee,

The first inspector was simply for the buyer’s benefit to see if the house was in good condition. The second person was actually an FHA appraiser and not an inspector. However, he requested the last inspector to insure that the property will serve as collateral and meets FHA standards for a loan. He had questions about the roof and brought in an expert who now says you need a new roof to make this deal work. 

As far as the buyers wanting to put on the roof – that’s alright, but you need to make sure you have this in a firm written agreement that has been reviewed by a good attorney. Have that agreement in writing before you close this sale because this is a really dangerous process. Get a good attorney!
Dave

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