Credit at Closing vs. Repairs
When your listing receives an accepted offer, expect the buyer to enlist the services of a home inspector before the contract is complete. Even a brand-new home isn’t perfect. Buyers often use home inspections to negotiate during the buying process.
Home Inspection Purpose
A home inspection is designed to ensure there aren’t any significant defects in the home. A buyer wants to know if the roof is in good condition, the air conditioning and heating system work well and there are no noticeable leaks or other potentially costly issues. However, the inspection is not designed to give the buyer more power in the negotiations of the agreed upon selling price or enlist the seller to fix a long punch list of items. Expect to make accommodations for unsatisfactory items but a seller shouldn’t be fixing every tiny detail.
Credits vs. Repairs
If something does come up that needs to be repaired, it is often best to aim for a credit at closing versus repairing the item. Repair work can be costly, time consuming and come with unexpected issues. Doing what you can to avoid repairing items is in your best interest as an agent. A credit for the expected cost of the repair is a valid way to address the concern. For example, offer a credit toward a new roof instead of having the roof replaced by the homeowner. Potential issues that can arise from repairs include:
- Buyers have their own ideas of what the repair should look like
- Buyers can nitpick the entire process
- Potential closing delay
- Often longer than expected repair timelines
Home Repair Negotiation
Negotiations are a part of any home selling process. A happy buyer makes selling the home easier on everyone and leads to more referrals for you. As a good realtor you are there to help guide your clients every step of the way.