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FAQ by Home Sellers. Can I just give credit to buyer at closing instead of making minor repairs?

By
Real Estate Agent with RE/MAX Centre Realtors

Home Sellers often ask me if they can just give buyers a credit for minor repairs.

I suggest that they take care of minor repairs prior to listing the house.

Homes that show well, sell for more money and they sell quicker than homes that need work.

We can  list your  home  as 'handymen special' if you wish but it   may sell at a deep discount. eg if a home needs repairs worth $2000 a buyer may think it needs work worth much more. You may offer to give them a credit of $2000 but they may ask for more.

Many buyers are turned off by homes that have minor  maintenance issues. They may wonder if there are some  major things that are wrong with the house , if you did not even take care of minor repairs.

Some of the minor things I have noticed over the years are :

 1.  Door bell not working. ( Buyers ask if there is something wrong with the electricty.)

 

2.Difficulty in opening doors or locking doors as keys do not work well. .

3.Toilet running

4.Leaky faucets.

5.No battery in ,smoke detectors and we hear a beeping sound  .

6.Cracked window panes.

7.Tub needs caulking.

When it comes to return on investment you can usually recoup the cost of minor  repairs.

Another problem you may have is with the lender. Lenders allow a certain amount of credit at settlement and if it exceeds the amount the loan may be denied. This may happen if you are helping buyer with closing costs. Lenders have guidelines about the condition of the house . There is a list of items that appraisers check. The borrowers' mortgage company may require that some repairs be made before settlement .

When you are ready to list your home consult your real estate agent . The agent will make recommendations that will help you get the highest price in the shortest possible time under current market conditions. The agent will also take into consideration your financial situation. We do understand that many home owners are facing financial problems .

 

 

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Gita Bantwal is a Realtor with RE/MAX Centre Realtors in Bucks County, a Northern suburb of Philadelphia. You can view 1000s of listings on her web site www.GitaBantwal.com

 

She can be reached at 215-343-8200x124 or direct 215-275-8491 or via email gita01@aol.com

If you would like a FREE MARKET EVALUATION OF YOUR HOME IN PHILADELPHIA, BUCKS or MONTGOMERY COUNTY call me at 2152758491

 Gita specializes in Active adult communities and is a Seniors Real Estate Specialist. She holds the ABR designation (Accredited Buyers Representative) and specializes in selling to first time buyers as well as move up buyers.Gita also hold the CRS designation , Certified Residential Specialist and the CDPE designation as well. Information about real estate market is deemed to be correct but is subject to errors and omissions and should be verified independently.. Opinion expressed by me or others  in my post and comments is not to be construed to be  legal advice.I am licensed in Pa. Check real estate laws in your state as they may be different than in Pa.

IF YOU WOULD LIKE TO SUBSCRIBE TO MY BLOG         CLICK HERE   OR EMAIL ME AT Gita01@aol.com

 

Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Excellent advice, Gita.  Very often sellers will lose more by deferring needed maintenance and then offering credit than if they took care of it up front.

Jun 27, 2017 04:46 AM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Gabe, I agree

Jun 27, 2017 04:53 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

This is good advice, Gita. Small things can often become big things in buyers eyes, especially during the showing process. Why take a chance that some deferred maintenance will turn them away? And buyers may want more in credit than the problems are actually worth!

Jeff

Jun 27, 2017 07:38 AM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Jeff, I hope they will read this.

Jun 28, 2017 06:12 AM