Selling Your Home in Storm Season: What to Do After Hail Damage

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Selling a home during storm season presents unique challenges, especially when it hails. As a top real estate agent with the Dempsey Group servicing Arvada and the Denver Metro Area, I’ve seen firsthand the complexities of selling homes in Colorado’s unpredictable weather.

In Spring 2024, Denver experienced a historic storm with 2-inch hail, affecting thousands of homes. If you’re under contract on a house that was hit by hail now or in the future, here’s what you need to know.

Handling Hail Damage in a Home Sale

If hail or any other damage occurs to the home, it’s important to remember that the contract requires the seller to deliver the home in the same condition as it was at the time of the contract.

When damage occurs, you have three options to address it with the seller:

1. Insurance Claim and Pre-Closing Repairs

The seller files an insurance claim, with repairs completed before the closing date.

2. Extend the Closing Date for Repairs

Extend the closing date to allow time for the necessary repairs to take place and then close.

3. Escrow Funds for Post-Closing Repairs

Escrow one and a half times the repair estimate for the buyer to cover repairs after closing. This requires lender approval and clear communication between buyer and seller.

Options 1 and 2 are ideal because they ensure the home is returned to its original condition, the repairs are paid for, and the home is ready for the new owners to move in immediately.

Option 3 is often used when the closing date cannot be moved. However, from lender approval to title approval, this option requires careful coordination leading up to closing. After closing, additional coordination must take place between all parties to ensure the repairs are performed, the final invoices are paid, and all affected parties are notified (lender, title, buyer, seller, and agents involved).

If you are a buyer, no matter which option you choose, make sure your own contractor reviews the damage. It is critical for you to fully understand the repair work involved and potential costs associated with it to make certain any agreement with the seller will solve the problem.

As a Denver Realtor representing both home buyers and home sellers, navigating unexpected damage while under contract is complex and requires the insight of an experienced, professional agent to guide you through it successfully. Working with novice or inexperienced agents can add incredible stress to the transaction since you may not be aware of your options and may lead to liabilities unknown to you at the time.

If you’d like to buy or sell in Arvada or across the Denver metro area, I’m here to offer expert guidance and support. Reach out today for a smooth and stress-free real estate experience.

 


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