It is fair to say that sellers would love their home to sell for the highest possible price. Understandable. Unfortunately, this strong desire and motivation are why it's easy for agents
Q&A: Should I Negotiate Repairs Before Closing?
Dated: October 20 2020
Even though I am a realtor with extensive real estate experience, the word 'inspection' tends to make me and many of my clients uncomfortable. It is understandable that being 'inspected' can make you uncomfortable. If you are the seller, you don't want to lose the sale.
If you are the buyer, you don't want to lose buying the house of your dreams. Plus, add to the scenario, no-one wants to spend more time and money than necessary. All of that combined can make an uncomfortable situation.
Buying and Selling homes in Prescott, Arizona, is unique since the historic mountainous area has various types of homes. Prescott has 125-year-old historic homes, senior mobile homes, new custom homes, starter homes, luxury homes, ranches, subdivision homes . . . the list can go on and on. At the time of sale, each home typically will undergo an inspection. Here is a question that I often receive regarding the repairs that the inspection revealed. Hopefully, this will help you when you are in a similar situation:
Q: The home inspection just completed on a home I have under contract turned up some issues. Should I insist the repairs be completed before closing?
A: It depends. Everyone wants a smooth closing, and home inspection negotiations are a place where a deal can fall apart. Here are some things you'll want to consider:
1. If you require the seller to make the repairs, do you think they'll do as good of a job as you would? After all, they're getting ready to move on to their next home. While the repairs must meet specific quality standards, they might not measure up to your high standards (though they technically fulfill their end of the bargain).
2. Ask yourself, do the repairs matter in the grand scheme of things? Are you quibbling over some peeling linoleum in a kitchen you're already planning to renovate from the floor up?
3. The back-and-forth over repairs could delay your closing. Remember, getting the work done will involve selecting a contractor, scheduling the job, and final review of the work completed.
Instead of having the repairs made before closing, you might decide to seek a cash-back credit at close of escrow. This way, you can have the work done on your terms and your timeline after closing (and you might just offset some of those closing costs as well).
Negotiating cash-back at the close of escrow is just one of the many reasons that working with a real estate professional is to your benefit. Realtors are trained and take many – many (many) classes to equip themselves to help buyers with the best strategies to make an equitable and smooth transaction. It is best not to navigate the process alone. I'm happy to help you with any questions you may have and make sure you get the most out of your next real estate experience! 928-277-6404.
You deserve a home in good shape! How it gets that way is often negotiable.