Repair Requests: A Sticky Issue for Many Transactions

Southwest Ohio Real Estate Podcast with Tami Holmes

Today I’ll tell you why buyers should always handle repairs for the homes they’re purchasing.

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One of the happiest days for a home seller is when they finally have an accepted purchase contract on their home.

Then comes the inspection period. Without fail, issues will be found in their house. Now, buyers and sellers will have to figure out how to handle repair requests. Here is some advice that comes from Inman, a reputable real estate news source:

Save yourself headaches and do what’s best for all parties involved: Issue a repair credit when repair issues arise.

Why do this?

Well, if the seller does the work, will the buyer like the color, quality, and the product the seller picked out? Is the warranty on the repair transferable to the new buyer?

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Giving a credit to cover the requested repair items
is one of the easiest ways to avoid an
often difficult negotiation.

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Depending on the number of repairs, this can be a lot to accomplish when you’re attempting to close a deal in 30 to 60 days. No one wants the added stress of a delayed closing. Giving a credit to cover the requested repair items is one of the easiest ways to avoid an often difficult negotiation.

Another consideration is the buyer’s loan. If it takes longer for the seller to complete the work through no fault of their own, this could result in increased interest rates on the buyer’s loan. That rate increase could mean that the buyer no longer qualifies for the loan, which would mean the deal would fall apart. One solution is to have the title company escrow the funds for repairs and then release them when the work is completed.

This may all sound complicated, and it can be. More transactions fall apart due to inspections than for any other reason. That’s why you need a highly experienced, highly qualified agent representing you. Do you really want to entrust an agent who only sells a few homes a year with handling a difficult negotiation during the inspection period?

With the assistance of my team, we successfully negotiate around 400 inspections each year. So if you’re buying or selling a home in 2019, reach out to us. Let us be your experienced negotiators.