Review your contract and work with a realtor to protect your home sale.
Unexpected events can create challenges during a home sale, especially when a natural disaster damages the property while under contract. Buyers and sellers may find themselves uncertain about their rights and responsibilities. However, the right approach can make a significant difference in how smoothly the process moves forward. Here’s what to consider when facing these circumstances.
1. Review the purchase agreement. A home sale involves not just the land but also the improvements on it, such as the house and any outbuildings. If a disaster like hail damages the roof, the path forward is more straightforward than if a tornado destroys the entire structure. In either case, the first step is always to review the purchase agreement, which outlines how both parties can proceed. Many transactions use standard agreements, such as the Des Moines Area Association of Realtors purchase agreement, which provides clear guidelines in these situations.
2. Check your insurance. If a property sustains significant damage, the seller’s insurance is the first point of contact since they still own the home. The purchase agreement often includes clauses that allow the buyer to decide whether to move forward with the purchase. In some cases, the contract becomes voidable, meaning the buyer has the option to cancel the agreement. If the home is destroyed, this decision is more critical.
“Regardless of the type of disaster, working closely with a real estate professional is essential.“
Smaller damages, like hail claims, may not seem as severe, but they can still create challenges. High insurance deductibles and changes in roof coverage policies can complicate negotiations. These factors may require additional discussions between the buyer and seller to determine who will cover the costs.
3. Work with a professional realtor. Regardless of the type of disaster, working closely with a real estate professional is essential. Whether dealing with fallen trees, hail damage, or more extensive destruction, having expert guidance can help navigate the situation effectively.
If you find your home was damaged in a disaster while under contract, early and consistent communication is critical. Review your purchase agreement, check your insurance, and work closely with your realtor to navigate the process with ease. If you have questions or need guidance, don’t hesitate to reach out. You can call me at 515-681-5677 or send an email to timothyschutteteam@solddesmoines.com. It’s 100% free and no obligation. I look forward to hearing from you!