Investment Property I am selling - question....

I have an investment property I am selling. The home needs some fixing
up and I have a buyer that wants a $5,000 decorator allowance. If I
include a "decorating allowance" in the sales contract when is the
remodeling work typically done - before closing or after.
If done before closing, what if I go to the trouble of re-decorating
the home to the buyers specs and the closing falls through due to buyer
financing. Now I have a home with styles that may not be what I want.
Can I specify to perform the remodeling after closing takes place
(basically a condition of closing)?

Thanks

Re: Investment Property I am selling - question....

In article <>,
"DSF" <> wrote:

> I have an investment property I am selling. The home needs some fixing
> up and I have a buyer that wants a $5,000 decorator allowance. If I
> include a "decorating allowance" in the sales contract when is the
> remodeling work typically done - before closing or after.
> If done before closing, what if I go to the trouble of re-decorating
> the home to the buyers specs and the closing falls through due to buyer
> financing. Now I have a home with styles that may not be what I want.
> Can I specify to perform the remodeling after closing takes place
> (basically a condition of closing)?

The best way to do this is include the $5000 decorator allowance
in the deal. Put an offer into the buyer, and let them pick:

(1) you simply refund them $5000 at closing, they do with it
what they want to do.

(2) they agree to have you do the work. You put money from
the sale into escrow at the closing. It is typical to put
1.5 to 3 times the price in escrow. Once the buyer is
happy with the work, they notify the escrow company to
release the impounded funds to you. If you fail to do the
work, the impounded funds are used to hire someone else,
and you might get any leftovers.

-john-

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John A. Weeks III 952-432-2708
Newave Communications
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