What To Do When A House Needs Small Repairs…

Mortgage and Lending with Berkshire Lending, LLC

I’ve written about this topic before, but I was asked about it again yesterday, so I thought I would touch on it again here.


If you are buying a house that needs minor repairs – but the seller refuses to do them – what do you do?

This situation happens a lot, especially on bank owned homes.

The simple answer is to use an escrow hold back. …an escrow hold back is a small amount of money that is held out of the seller’s proceeds from the sale to make the repairs. Of course the seller has to agree to it, and you have to make it part of your offer.

You have to write the escrow hold back right into the contract – under special provisions. To avoid having to rewrite this clause – be specific. Your realtor will need to write – “An escrow hold back in the amount of $______ will be used for (specific) repairs.”

One key with the escrow hold back is the repairs need to be minor – and they can’t take that long to finish. …an average amount of an escrow hold back is $1,500 to $3,000, although I’ve had them up to $10,000.

Knowing how to solve minor repair problems on an offer – can sometimes make the difference between getting a great deal on a house, or not buying it at all.

If this situation comes up with your deal – just give me a call – I can help you out.

I hope you have a great day! Thanks for reading!


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Comments (1)

Anja Kerstens, 669.270.8034
Compass - Morgan Hill, CA
GRI, NHCB, CDPE, CHS. Silicon Valley Homes

I guess you can only do that if you know what repairs are needed when you bring the offer.  Otherwise you will have to write an addendum.

Mar 02, 2016 03:04 AM