Quite often after the result of a home inspection there are some issues to be addressed. They range from small items from fixing a toilet, repairing loose shingles to replacing a component of a furnace.
Should you ask the Seller to repair the item or ask for a credit?
Buyers often want the Seller to repair those items. They're going to be moving in, they don't want the hassle of calling someone, they dont know who to call or they may not have the extra cash in hand to have the repairs done. The problem is - you are relying on someone else to take care of this work and have no control over the level of quality for the repairs. A repair agreement or rider to a purchase and sale agreement can be drafted to spell out the details but in spite of best efforts, I often find the agreements are ambiguous or that there are differences of opinion as to how the items are to be addressed and when.
Come time for the final walk through or inspection and the items are not done or not done right or done by questionable practices, then it leaves everyone stressed out at the closing table.
That's why my preference is a credit. If there is either a purchase price reduction or closing cost credit, then the Buyer can hire a professional of their own choosing to handle the repairs. It's clean and simple and less open to interpretation. The main issue with a credit is determining a reasonable cost. Buyers may think something will cost more than it actually will and Sellers will think it will cost less. However, getting a professional estimate should answer the question of how much the credit should be.
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