Under Contract and Basement Flooded. Now what?

[Account Closed]

We're under contract on a primary and we were just notified that the basement flooded. The entire basement has a sheet of water after an unprecedented heavy storm. Sellers sent photos through our attorney. What kind of options do we have? We're past the inspection period.

[Ryan Kelly]

@Account Closed contracts are written to protect buyers. This particular clause lets YOU out of the contract if the sellers don't perform the repairs. Sellers generally can't terminate a contract (unless a buyer defaults), but it sounds like the sellers are hoping YOU terminate using this clause. If it were me, I'd take the opportunity to terminate, get your earnest money back, and move on.

[Natalie Schanne]

@Amanda Schneider - Option A) You said you don’t want to cancel. Buy it anyway with the damage.

Option B) Option A plus see if you can get their insurance payout assigned to you.

Option C) Demand they fix it, have them cancel on you and try to guilt them into paying your inspection or appraisal expenses.

Option D) Eat the inspections cost, walk away, send “I want to buy your house without commissions” direct mail or drive for dollars or hook up with a wholesaler, find a better house for less that hasn’t flooded.

I like Option D when I have a stubborn seller. Maybe you can be more crateative and not pay $100k over asking. The market is cooling off.