Damaged Goods

What happens when the house is damaged during the move?

First, it depends on the severity of the damage. Occasionally, a wall, door or window might get damaged while moving furniture. Sometimes during a move, a floor may be scratched.

If the seller is moving several days ahead of the closing, there is time to make any necessary repairs, arrange for an estimate of repair work - or offer a fair credit amount (at closing) that is acceptable to both parties.

As the seller, it is always best to be upfront and honest about any damage that occurs while moving. When the buyer does their final walk through and discovers the damage, they may wonder if there is other damage in the house, still to be found.

If the seller is moving out the same day as closing, and the property is damaged at the last minute, a repair or replacement credit amount needs to be worked out at the closing table. Several phone estimates may be needed, to agree on a credit amount.

If there is severe damage to the home prior to the closing, such as a fire, our Northern Illinois real estate contract states:

"DAMAGE TO REAL ESTATE PRIOR TO CLOSING:
If, prior to delivery of the deed, the Real Estate shall be destroyed or materially damaged by fire or other casualty, or the Real Estate is taken by condemnation, then Buyer shall have the option of either terminating this Contract (and receiving a refund of earnest money) or accepting the Real Estate as damaged or destroyed, together with the proceeds of the condemnation award or any insurance payable as a result of the destruction or damage, which gross proceeds Seller agrees to assign to Buyer and deliver to Buyer at closing. Seller shall not be obligated to repair or replace damaged improvements. The provisions of the Uniform Vendor and Purchaser Risk Act of the State of Illinois shall be applicable to this Contract, except as modified in this paragraph."

I have yet to see a closing cancelled due to damage from a move. But I have worked with many sellers and buyers to resolve last minute credit issues regarding damage during a move. Our mutual goal is fairness to all parties and for a successful sale, with happy sellers and happy buyers.

Jim Starwalt

Thinking of making a move? Log onto my website at www.StarHomeFinders.com and search the Multiple Listing Service from over 150,000 homes for sale. Registering is quick and easy!

Jim Starwalt, Broker Associate RE/MAX Center, Phone: 847-548-2625 Jim@StarHomeFinders.com