DSNews.com Article Feed

Saturday, August 4, 2012

Break In Before Offer Execution

When I was meeting my buyer last week, to pick up their Earnest Money for their accepted offer on an investment property, we found the home had been recently broken into.   A peek through the window showed standing water in the kitchen.  We were fortunate the police weren't far from the property and only had to wait a few minutes for the officers to accompany our walk through the home to ensure the 'thieves' were no longer present and assess the damage.
Copper was still in tact, surprisingly, though the appliances had clearly been moved.  Turns out the standing water was coming from the fridge being pulled from the wall and opening up the water line.  The dishwasher may have also been leaking, though it wouldn't be until someone tries to disconnect the line and pull it out to check it's status.  There was standing water in the basement, where it is only partially finished with some sheet rock and insulation formed a few rooms.
We returned to the property with a contractor yesterday to assess the damages.  Turns out the burglar(s) attempts at stealing the appliances will cost just over $4000 to bring the home back to the condition it was before the break in.  I was a bit surprised it would cost that much, but then went through the list of items needing correcting again:  Replacing screens that were cut, replacing one broken window, replacing torn and scraped vinyl flooring, pulling out molding sheet rock in the basement and remediation to the area to hinder future growth.
To my buyer, this was a cost they weren't expecting to take on when they went into multiple offers on the property and will in turn request a reduction of purchase price to cure the damage from the break in.   Whether you're an investor or an owner planning to occupy the home, this break in could mean the difference of canceling the offer completely or reducing the offer price to offset the additional repair costs.  Either way, both the buyer and the real estate agent have now spent extra time working on this transaction thanks to those in the business of destroying homes for a quick buck.