Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Just curious. If a seller does not accept your first offer and counters with some different number with the closing costs you have asked for and the amount of money tied into repairs that you would be responsible for after an inspection (raising it, obviously), is this just another tool for them to see how inetersted you are (the inspection repair level..) or is this a major red flag?
We have made three offers on three separate houses and the first one this was an issue as a bargaining chip along with more earnest money and more money for the house itself and there was a little biddign war so it made sense. It seems like the numbers on both are the same, making me think that the real estate agent is the one making up the numbers (4K versus $1500 in repairs on both contracts).
Just curious. If a seller does not accept your first offer and counters with some different number with the closing costs you have asked for and the amount of money tied into repairs that you would be responsible for after an inspection (raising it, obviously), is this just another tool for them to see how inetersted you are (the inspection repair level..) or is this a major red flag?
We have made three offers on three separate houses and the first one this was an issue as a bargaining chip along with more earnest money and more money for the house itself and there was a little biddign war so it made sense. It seems like the numbers on both are the same, making me think that the real estate agent is the one making up the numbers (4K versus $1500 in repairs on both contracts).
Is this confusing or do I make sense?
Most buyers and sellers agree that the repair contingency shouldn't be so low so that small repairs bring the contingency into play but large enough to cover major items, such as structural issues.
I usually tell my sellers to expect to pay about $1200 for repairs IF they are hiring them out, so a $1400 repair contingency is too low, in my opinion and I would caution my sellers against accepting that.
These figures are negotiable but of course, sellers like them to be high and buyers like them to be low.
Just curious. If a seller does not accept your first offer and counters with some different number with the closing costs you have asked for and the amount of money tied into repairs that you would be responsible for after an inspection (raising it, obviously), is this just another tool for them to see how inetersted you are (the inspection repair level..) or is this a major red flag?
We have made three offers on three separate houses and the first one this was an issue as a bargaining chip along with more earnest money and more money for the house itself and there was a little biddign war so it made sense. It seems like the numbers on both are the same, making me think that the real estate agent is the one making up the numbers (4K versus $1500 in repairs on both contracts).
Is this confusing or do I make sense?
I think you may be confused on the meaning of the Standard Offer to Purchase and Contract Form's "Cost of Repair Contingency."
Section 16(e) under Alternative 1.
That clause doesn't imply any monetary responsibility to you for repairs.
Yes, it just means that we are responsible for repairs if we choose, up to 4K, and higher than that they will pay.
I guess I am just asking if it is so high that it raises red flags. I understand the first response though. If the average is around $1200, then yes, $1500 seems too low to the sellers. Just wondering if these numbers are standard bargaining numbers: $1500 versus 4K.
Yes, it just means that we are responsible for repairs if we choose, up to 4K, and higher than that they will pay.
I guess I am just asking if it is so high that it raises red flags. I understand the first response though. If the average is around $1200, then yes, $1500 seems too low to the sellers. Just wondering if these numbers are standard bargaining numbers: $1500 versus 4K.
If we are talking about the same clause, the Cost of Repair Contingency, you are in significant error in your interpretation.
I believe the clause in question gives you, the buyer, the right to walk if the estimated cost of repairs exceeds the dollar amount you specify (even if the seller would be willing to make those repairs). Thus, a buyer would want that number to be lower (more leeway to get out of the deal), and a seller would want that number to be higher.
There are other inspection provisions you need to read and understand.
If a buyer sets a low repair dollar amount in their offer and the seller accepts, it's a safe bet that the seller has confidence in the condition of their home. I'd consider anything lower than about $1000 VERY low.
If a buyer sets a low repair dollar amount in their offer and the seller accepts, it's a safe bet that the seller has confidence in the condition of their home.
Or they're naive. I feel pretty confident my home is in great shape (I'm not selling it), but I bet if an inspector crawled through it he'd come up with a list of stuff I wasn't aware of - some of which wouldn't otherwise need immediate attention for a homeowner but in a sales transaction has to be addressed now.
Yeah, you are right. That's what the inspector is paid to do.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
