Try not to make emotional decisions. They usually turn out to be the wrong decision
On the other hand, as is noted below, a 2% allowance for repairs isn't trivial for the seller, and probably not for you, either. Further, the seller is completely and absolutely within his rights to refuse to pay for any repairs.
As the others say, you can try to negotiate.
Failing that, the only question is: "Is the asking price a fair price for the house in its current condition?" If yes, buy. If no, don't buy. It really is that simple.
It'll be up to negotiations whether the seller will pay for the repairs or not. Hopefully the property has been on the market for a long time and you have the upper hand. As many have also stated, not knowing the purchase price, we really don't know what the 2% means.
I'll be interested to know how this is resolved in the end! Do keep us posted!
Make sure if you are asking for repairs/creidt that you do it within your contingency period. Otherwise if they say no and you walk, they may be entitled to your earnest money deposit.
Like one of the answers said below. This is a very emotional time for sellers and they treasure their home. Sometimes these rquests can feel like a slap in the face to them. I know buyers don't mean it that way.
As agents we know it is just business but that is difficult to convey to sellers who may be facing feelings of ambivelence saying goodbye to their castle.
Sometimes they will walk away from a deal and leave money on the table over "principle"
Also, I agree that 2% is not a trivial amount. I have a listing for 965k on the market and I know my seller wouldn't consider a credit for nearly 20k for even a second.
I tell you all this not to pressure you one way or another, just to give you my experience and insight from working with both buyers and sellers over the years.
Good luck with your deal!
The home inspection turned up alot of minor repairs and basement water seepage. The seller refused to credit me or take care of the basement or repairs.
A home inspection is quite an investment. Don't let a broker downplay it or tell you any different. The seller ought to honor you're inspection by helping to take care of any major repairs.
If their not selling a property "As is" and theres no disclosure they know about the damage and repairs needed, which is illegal and their hoping not to get caught.
CONDITION OF PROPERTY: Unless otherwise agreed in writing: (i) the Property is sold (a) “AS-IS” in its PRESENT physical condition as of the date of Acceptance and (b) subject to Buyer's Investigation rights; (ii) the Property, including pool, spa, landscaping and grounds, is to be maintained in substantially the same condition as on the date of Acceptance; and (iii) all debris
and personal property not included in the sale shall be removed by Close Of Escrow.
A. Seller shall, within the time specified in paragraph 14A, DISCLOSE KNOWN MATERIAL FACTS AND DEFECTS affecting the
Property, including known insurance claims within the past five years, and make any and all other disclosures required by law.
B. Buyer has the right to conduct Buyer Investigations of the Property and, as specified in paragraph 14B, based upon information
discovered in those investigations: (i) cancel this Agreement; or (ii) request that Seller make Repairs or take other action.
C. Buyer is strongly advised to conduct investigations of the entire Property in order to determine its present condition. Seller may not be aware of all defects affecting the Property or other factors that Buyer considers important. Property improvements may not be built according to code, in compliance with current Law, or have had permits issued.
Your agent must negotiate with the seller's agent to get the repairs completed. Unfortunately, I have seen escrows fall out because of seller's refusal to pay for repairs.
Maybe the seller priced the home knowing some of the repairs were needed.
If the home was in perfect condition, he mayhave asked much more for the home..
Just my experience, but I've never even been close to 2% of the value of the home on repairs credited.
Good job doing a home inspection. Now you have a decision to make. If they won't pay for the repairs, you are entitled to back out of the purchase. It is up to you.
As many have already said, the seller is NOT required to make any repairs, but, it should be made VERY clear to the seller's agent that unless these repairs are made, you will walk. Plus, the problems will be required to be disclosed to any future buyers. Usually in todays market, once the seller understands these facts they may be more willing to deal.
Hope this is slightly helpful
First Team Real Estate
This is not actually the case. In all cases where a home is sold in "as -is" condition it only means as-is disclosed. You the buyer have the duty to inspect the property prior to the close of escrow. This is your due diligence period. You have the right to ask for repairs to be done but the seller has the right to say no if they want to.
I believe Wells Fargo has a semi - permantent rehab loan program that might be a smart move. I would get a home inspector to do an inspection and I also advise getting a contractor to give you an estimate of necessary work. Submitting this information with your offer may make the offer easier to get accepted. If you can ask the seller to pay some points to buy down your loan, you may be able to have lower monthly payments and do the repairs yourself. One point is equal to 1% of your loan amount and can reduce your interest rate by about 1/4%. Two points is 2% and reduces the motgage interest rate by about 1/2%. Since this would be based on the loan amount and not on the sales price, the seller would be giving up less. Your offer could request either the repairs or the interest rate buydown, so the seller would have a choice. I have the names of contractors and home inspectors if you need them.
Like what was said earlier, you have to decide how badly you want this home. If the repairs are major, you may want to rethink how you can get them done less expensively. If it's a lot of minor repairs, you may be able to do some of them yourself. It's hard to come up with a real solution without all the facts, but maybe there is some negotion on repairs that are crital or issues of health & safety.
As for relisting after you walk away....it doesn't matter. What matters is how much you want the home, and if you can come closer through some continued discussion with the seller. ASK, ASK, ASK, is my opinion. Try to gain some understanding from the seller why they are so recalcitrant, and if you are successful, then this home may well be yours soon.