Selling a Condo with Water Damage
We have owned a condo unit that has been rented out for several years. Recently, the Condominium Property Management informed us that they replaced a window but stated that any water damage is our responsibility as the owners. They even provided a quote for the repairs.
After reviewing the situation, our condo unit manager offered us a quote that is 50% less than the initial estimate.
An insurance contractor has confirmed the damage and submitted his report, but the insurance company has yet to respond.
In the meantime, our real estate agent is suggesting we lower the asking price.
Is it possible to receive the insurance payout, reduce the price, and forgo repairs on the condo?
Also, how long typically does it take for an insurance adjuster to respond?
It sounds like you’re dealing with a challenging situation! Here are some points to consider:
Insurance Payout: If the insurance adjuster acknowledges the damage and provides a report, it’s possible to receive compensation based on their findings. However, it typically doesn’t work to “double dip” by receiving insurance money while also dropping the sale price for the damage. It could be perceived as misrepresentation if you don’t disclose the issue to potential buyers.
Selling As-Is: Depending on how urgently you need to sell, you might consider selling the unit “as-is.” This means you can disclose the damage and the fact that you’ve filed a claim without needing to fix it beforehand. However, be prepared for potential buyers to negotiate the price down based on the repairs needed.
Timing of the Adjuster: The timeline for an insurance adjuster can vary widely. It could take anywhere from a few days to several weeks, depending on the insurance company’s workload and the complexity of your claim. If you haven’t heard back yet, it might be worth following up with them for an update.
Real Estate Agent’s Advice: It’s wise to discuss your options with your real estate agent. They may have insights specific to your market that could help guide your decision about lowering the price or waiting for the insurance payout.
Ultimately, transparency is key. Be clear with potential buyers about the situation, and ensure that any sale agreements reflect the condition of the unit accurately. Good luck, and I hope you find a resolution that works for you!