Home Buying in Rodeo>Question Details

Deborah, Home Buyer in Rodeo, CA

can I ask for more credit from the seller when inspection shows $11,000 worth of repairs needed?

Asked by Deborah, Rodeo, CA Sun Jul 13, 2008

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I always explain to my Seller that there are 2 negotiations when selling their home. The first is the price and terms to get the property into escrow. The second is the repair request after the inspection. Here is your dilemna: with that much in repairs, do you have money in hadn to make the repairs when escrow closes? A discounted price doesn't help you if you don't. The credit can help, but be aware, the lender will not allow credits to be more than 6% of the sales price and if the credit is substantial enough (listing it as repairs), it may cause a red flag for the lender to not lend on the property. The safest bet is always to have the seller make the repairs prior to closing, that way you won't have to deal with them. I tend to recommend to my clients that all safety and health issues be repaired or corrected and then come to an agreement on the other items. Hope this helps.
0 votes Thank Flag Link Fri Jul 18, 2008
wouldnt ask for a credit.....i would ask for a discounted price

using the argument that....

appraisal issue can occur if the price appears INFLATED to cover repair costs......
0 votes Thank Flag Link Thu Jul 17, 2008
Your agent will probably submit a Request For Repair and list all the items you wish to have repaired. At that time the seller will either agree to the repairs, refuse to do any of the repairs, offer x number of dollars credit for the repairs or say they will do absolutely nothing toward the repairs. At that point you will need to decide whether or not you still want to move forward with the purchase.

If this is an REO or a short sale you most likely will get nothing for the repairs!
Web Reference: http://www.DotChance.com
0 votes Thank Flag Link Tue Jul 15, 2008
Double check the terms in your contract. Generally speaking, after the inspections are done, Inspection Notice is given thereby ending the Inspection Period. At this time, the buyer may a) Accept the property as is, b) Withdraw their offer due to any finding from the inspection that they find Unacceptable, or c) submit a Resolution of Unacceptable Conditions along with the Inspection Notice. The Resolution of Unacceptable Conditions allows for the buyer to address any issues noted on the inspection report and ask for the seller to repair, remove, add, fix, or whatever the inspector calls for. The buyer may ask for a specific dollar amount in lieu of repairs. Once you decide what is best for you to do in this particular instance, have your agent deliver Notice & the Resolution within the time period specified in the contract so that you don't lose your rights. Then it's up to the seller to accept, reject, or offer to renegotiate. Please ask your agent to go over the time lines and deadlines with you again so that you have a good understanding of what your options are.
0 votes Thank Flag Link Sun Jul 13, 2008
Yes, as has been said, you must seek the counsel of your agent. Hopefully if any of these repairs fell under section 1 termite work that would have been accounted for in the contract. Has the seller agreed to do section 1? Are any repairs under the section 1 section of any termite/pest report? If not, and these are repairs on a home inspection... where did you get the repair estimate? Are you already asking for a credit? You will also need to work with your lender to see what credits toward closing costs will be allowable. Or costs to a rate buy down or other. But typically you can not get credits toward repairs themselves - you can ask seller to do some , again, typically things that are "health and safety" related, but how competitive was the purchase...? So many questions, you really need to turn back to your agent and access their expertise on this situation. Good luck.
Web Reference: http://www.diablovalley.net
0 votes Thank Flag Link Sun Jul 13, 2008
Your agent needs to help you with this. I hope you didn't use the listing agent, because as you are finding, there can be a conflict of interest at this kind of point. If the repairs are for section 1 termite, then by all means make sure it is all covered, because the lender often won't lend unless the repairs are made. And sometimes, more work is found once they open up the walls - I hope your agent covered you for that possibility.
0 votes Thank Flag Link Sun Jul 13, 2008
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