You found your dream home but now the inspection reports show lots of repair work that should be done. Of course you, the buyer just want to make sure you are getting a really good deal and not buying a money pit.
So... does the seller have to make those repairs??
Watch this 2 minute video and see that it’s not as simple as it sounds... although the basic answer is ‘NO’. The seller is not obligated to make any repairs at all.
Remember, everything in a real estate transaction is negotiable! Consult your real estate agent on this matter and you may realize that it might not be such a good idea to ask the seller for anything at this point in the transaction, so don’t blow it!
But if it looks like you are dealing with a reasonable seller, it certainly doesn’t hurt to ask them to either repair all or part of the items, or even consider giving you a ‘credit’ so you can fix them yourself later on. If the seller does agree to any monetary ‘credit’ , make sure that it is given ‘TOWARD CLOSING COSTS’. You won’t have to bring as much money into the transaction to close it this way.
DO NOT mention that it is a ‘credit in lieu of repairs to be made’ or your lender might start calling for those reports. Let me repeat that... DO NOT mention that it is a ‘credit in lieu of repairs to be made’ or your lender might start calling for those reports. You certainly don’t want to open that can of worms with the lender or your entire deal might fall apart!!
Just be sure that if you do get this credit, that you get the repair work done quickly. Having a home in disrepair will most certainly decrease it’s value, so get that work done and don’t let the condition deteriorate further.
For more information, contact Elise Groves, Mortgage Broker at 707.546.0440 or Richard Paille, Broker of Hart & Co. at 707.539.2001.
Happy House Hunting!