The AC Was Stolen Before Closing. My Buyer Came Out Ahead

A while back I had buyers who were a day or two away from closing. We went over for the final walkthrough, and everything inside looked good. Then we walked around back.

Where the AC unit used to be, there was a slab and some cut lines. Somebody had stolen it.

Most people would panic at that point. The movers are booked, the closing is set, and now you’re wondering if the whole deal is about to fall apart. But this one ended up working out in my buyers’ favor.

The Seller Has to Hand Over the House You Agreed to Buy

When you sign a purchase contract, the seller is agreeing to deliver the house in the same condition it was in on the day you went under contract, normal wear and tear aside.

That’s really what the final walkthrough is for. It’s not a second home inspection, and it’s not the time to start picking apart things you already saw. You’re just making sure:

• The house is in the same shape it was in when you signed
• Any repairs the seller agreed to are actually done
• The things that are supposed to stay with the house are still there

A scuff on the wall from moving furniture out is wear and tear. A missing AC unit is not.

The Closer You Get to Closing, the More Leverage You Have

This is the part I want you to remember.

Think about where the seller is at that point. They’re at the finish line. They’ve probably got movers lined up, maybe they’ve already bought their next house, and they’re counting on that check. The last thing they want is a delayed closing, or a buyer who walks.

The closer we get to the other side’s goal, the more they have to lose, and the more leverage we have.

How It Played Out

We didn’t blow anything up. We let the listing agent know what we found, and we asked for a $3,000 credit at closing so my buyers could replace the unit themselves.

The seller said yes. We closed on time, and before my buyers even moved in, we had a new unit installed for about $2,000.

So my buyers got a brand new AC, and still came out about $1,000 ahead.

The Tip

• Don’t skip the final walkthrough. Go out back, turn on the heat and the air, and run the faucets. It’s your last chance to catch something before the house is yours.
• Know what the contract says. The seller owes you the house in the same condition it was in at contract. That gives you something to stand on.
• Stay calm. A problem late in the deal isn’t always bad news. The seller wants to close too, and that’s leverage.
• Ask for what actually fixes it. A repair before closing, a credit, or a short delay are all on the table. Pick the one that works best for you.

A lot of times problems can end up being better for us. You just have to know how to use them.

Just the Tip Tuesday is my weekly series breaking down real-world real estate situations, negotiation strategies, contracts, and lessons I've learned over more than a decade in the business. Every contract is different, so check the walkthrough and property condition language in yours. If you have a loan, credits at closing need lender approval and can be limited by the loan program.