Seller offered something different in the beginning.

[Thomas T.]

Seller signed a contract saying gutters and a fence would be finished at closing. I got a phone call saying he would give me 3000.00ish to compensate for not putting the fence up at closing. Very frustrating because it's on a VA loan and we would have completely redo the appraisal and wait further time. We are suppose to close of the 27th of March. What happens if the fence is not completed up to our standard. Also our appraisal is pending do to the fact the gutters and fence aren't complete. Any advice? Thanks first post. BP has taught me so much and helped me make my first deal. Hopefully it doesn't fall thru.

[Bill Gulley]

Thomas, welcome to BP!

The fence is probably not a big issue as it is not required, homes sell without fences. The appraiser would need to address any difference in market value and there may be no difference or it could be significant, more than 2-3% depending on the lender. The gutters however are attached to the dwelling and usually are a required repair regardless of the value of the repair.

There will be a final inspection by the appraiser to give a final value after repairs are made.

I suggest you contact your lender and inform them of the seller's intentions.

There is another solution that might be possible. The lender can require funds to be escrowed from the sale for repairs to be made by a contractor, you may close and then have repairs made with the contractor paid from escrow. Funds escrowed are generally one and a half times the contractor's bid, but they may require more. This is an option and it is up to the lender to allow work to be performed.

You may have a default in your contract by the seller as to performance, I suggest you not sign any contract modification as you could compromise your standing in your contract and end up having to start all over. Most likely the repairs will be required anyway. Usually sellers become less motivated in such matters and think they can just make up the difference. If amounts are small a lender may agree but you get into seller concession issues that effect the loan and VA at 100% financing will be more critical than a conventional loan at 75/80% loan to value.

Get with you lender ASAP! :)