Janeese Jackson, Principal Broker
Real Estate Resource
So, I would counter insisting that the work be done by a contractor of the buyers' choosing, that the seller agrees to cooperate as necessary. The work can be done after closing, with the contractor's payment held in escrow until completed to your satisfaction, if the work would be too much of an inconvenience to the seller.
We use this all the time, but as a buyers agent, we are always cautious to ensure that the buyer can actually get the benefit of the full negotiated amount, because anything left on the table will go back to the seller. Make sure you drill down on this one.
Talk with your lender as well as your agent regarding the repairs there are some things that just aren't worth the risk. Keep in mind if they are safety issues and you are financing the home with a government loan program the appraiser will call for those repairs to be made as a condition of the value. There is no way around that.
Otherwise, the credit over your closing costs will not be useful to you, as banks will no longer allow it.
Another option would be to use the maximum amount you can for your closing costs and drop the sales price by whatever amount is left over, so in this case- use the $6500 and drop price $4500.
They usually say "non-recurring closing costs"; it makes a difference.
Also, if the money exceeds the allowance, the surplus does not go to the Buyer, usually.
Possibly, (not a tax expert), column one is tax deductible for the Seller, and column two is not.
What does your Realtor say?
Sounds odd. Have your loan officer determine exactly what your closing costs will be that the seller is allowed to pay than include your request in your offer. Typically a seller will add the closing costs to their bottom line price so adding too much will raise the price further. The only thing I can think of is if the seller and your loan officer are connected in some way and the loan officer is planning to add closing costs ?? I hope thats not the case. Maybe the agent is looking for a way to raise the asking price knowing that if the money is not used the seller will net more?? Go to Your-Road-Home.com. and read the articles on financing. Will serve you well. Good Luck