Readers ask: Is It Better To Ask For Repair Or Credit When Buying A House?

Knowing that, if the inspection report reveals significant issues, the buyer is typically better off asking for a credit instead of asking the seller to take care of the repairs themselves. A credit would help bring down closing costs for the buyer at closing, alleviating the cost of making major repairs to the home.

What is reasonable to ask a seller to fix?

Common seller repairs after home inspection

  • Major electrical issues that are safety or code issues.
  • Plumbing, drainage, sewer, septic, or water issues (or well water issues, if applicable)
  • Mold or water damage.
  • HVAC problems that affect home comfort.
  • Leaking roofs or missing shingles.
  • Termite and pest damage.

How do I ask for credit in lieu of repairs?

5 Options Buyers Can Ask for In Lieu of Repairs

  1. Reduction in Price. The most common alternative to making repairs is to ask for a reduction in price.
  2. Closing Costs. A similar tactic is to ask the seller to pay more in closing costs.
  3. Cash Credit.
  4. Extra Appliances or Furniture.
  5. Warranty.
  6. Use a Professional.
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What fixes are mandatory after a home inspection?

What fixes are mandatory after a home inspection?

  • Mold or water damage.
  • Pest or wildlife infestation.
  • Fire or electrical hazards.
  • Toxic or chemical hazards.
  • Major structural hazards or building code violations.
  • Trip hazards.

What is credit in lieu of repairs?

What is a credit in lieu of repairs? Simply put, it’s when a seller offers a monetary credit to the buyer which is equal in value to the cost of the repairs in exchange for not doing the repairs themselves.

Can you negotiate an AS IS home?

When a real estate agent lists as home to sell “as is,” that doesn’t change the legal rights of the buyer. The listing agent must still have the seller disclose known problems, and the buyer can still negotiate an offer with the final sale, contingent upon a real estate inspection.

Do buyers always ask for repairs?

Homebuyers can request house repairs before they buy it. Doing so is common across California. A buyer’s agent can issue the request for repairs during the transaction. When the deal closes, the buyer has a house they love, without the added need for repairs.

Can a buyer get money back at closing?

A cash back clause refers to a term in a Contract of Purchase and Sale whereby the buyer and seller agree that the seller will refund some specified amount of money to the buyer in cash upon closing.

Is it better to ask for closing costs or lower price?

Whether the buyer requests a decrease to the offer price or requests a closing cost credit really does not matter to the seller. It’s the same either way. With respect to the buyer, the benefit of a credit instead of a reduction in the sales price is that it will allow a buyer to keep cash on hand to do repairs, etc.

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How does repair credit work?

A repair credit is a dollar amount granted from the seller to the buyer to be used to cover the costs of the requested repair(s). That’s because — as a rule — lenders do not allow concessions for home repairs to be line-item credited on the final settlement statement.

What things fail a home inspection?

Here are some of the most common things that fail a home inspection.

  • Problem #1: Rundown roofing.
  • Problem #2: Drainage issues.
  • Problem #3: Faulty foundation.
  • Problem #4: Plumbing problems.
  • Problem #5: Pest infestations.
  • Problem #6: Hidden mold.
  • Problem #7: Failing heating systems.
  • Problem#8: Electrical wiring.

Can you negotiate price after home inspection?

You can realistically negotiate for anything after a home inspection, but getting the seller to agree to your terms is the real trick. You will need plenty of evidence such as pictures and repair estimates, as often a seller will actually be unaware of the defect in question.

Why do buyers ask for closing costs?

Higher Purchase Price Buyers generally take the closing costs into account in their offer when they ask sellers to pay the costs. When you agree to pay the closing costs, you end up with a higher purchase price for the property than the buyer would have given if you had not paid closing costs.

What is a repair allowance?

An allowance usually refers to a repair, replacement or refurbishing — often related to issues that arise from the home inspection. A concession is more often used to reduce the closing costs due from the purchaser.

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Do sellers have to accept asking price?

Home sellers aren’t obligated to accept any offer on their home—no matter how much money it’s for. You’re under no obligation to agree to an offer on the home you’ re selling, even if it meets your asking price. If you turn down a full-price offer, you may still have to pay your agent, depending on the contract.

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