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Old 11-18-2012, 09:18 AM
 
Location: Lakewood Ranch, FL
5,093 posts, read 7,551,316 times
Reputation: 5949

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Another thought. In our contracts, we usually have a repair limit. Under this clause, the seller has an obligation to repair warrented (not cosmetic) deficiencies found as a result of the inspection up to a pre-agreed dollar amount or percentage of the sales price. If the repairs excede that amount, there are prescribed alternatives in the contract. Are you using an agent? Have you discussed this with him/her or are you just looking for ideas before you discuss it? Either way, look carefully at your contract and read every word of it so you understand what it says about inspections, repairs, and defaults.
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Old 11-18-2012, 09:24 AM
 
2,346 posts, read 4,774,593 times
Reputation: 4426
It's a negotiation. So negotiate.

Maybe you don't quite have to go as high as you suggest. Has the buyer made a specific request? The challenge is to get the best deal you can without being so low the buyer decides to walk. Ideally your agent is advising you.
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Old 11-18-2012, 09:44 AM
 
2,623 posts, read 4,312,992 times
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I would not risk losing a contract by haggling over the last $1000 of repairs. I think snooper's plan is a good one, as long as the mortgage company will approve it. Sometimes the loan is held up because of concerns that the buyer will take the $$$ credit and not make the repairs, and then the value of the house isn't high enough. So if I were you, I would have my agent check this out before making the counter-offer.
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Old 11-18-2012, 09:59 AM
 
397 posts, read 487,846 times
Reputation: 210
Quote:
Originally Posted by MikeJaquish View Post
I can't advise you other than say:

Kudos to you for trying to compensate your buyer for the hassles beyond the exact cost of the repairs.
Too many sellers shop for a low bid on a repair and then posture as magnanimous by offering that exact amount as compensation for the buyer to absorb the hassles.

Smart of you to recognize proactively the burden of responsibility for the buyer.
Are implying that sellers should not only pay for all requested repairs, but actually pay an additional premium?

Love that rationale if you were my buyer agent. If you were my listing agent and tried this line on me, I would fire you.

It all depends on perspective. Buyers should not assume that sellers will pay for any or all repairs and sellers should expect to give some concessions for repairs. Where on the spectrum the price falls depends on who wins the negotiations.

OP, wait for buyer to submit request for repairs and counter with a lower #. Would not recommend offering repairs + 25% out of the gate. Most buyers would be thrilled to get cost of repairs. Dont know your exact situation but the amount you concede depends on numerous factors: offer price, your motiviation (deparation) to sell, buyer motiviation, etc.

This an area where the interests of your buyer agent (if you have one) conflict with yours. Your BA wants the deal to close and if you have to pay additional repairs to make it happen no skin off their back, just off yours.
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Old 11-18-2012, 10:17 AM
 
Location: Lexington, SC
4,281 posts, read 10,198,380 times
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Snooper

As both a seller and buyer I would rather go the cash route.

As the seller. It gets me off the hook. No arguing if done properly, on time, etc. I agree, $XX. Let us get to close ASAP.

As the buyer. It gives me control to get things fixed the way I want them fixed or add to for more. If I am cash strapped it helps me.

Cash cures all. There is no romance without the finance........LOL
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Old 11-18-2012, 12:09 PM
 
6,353 posts, read 7,206,627 times
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As a Seller, I would prefer just to lower the price or give a credit at closing so that the Buyer could cover the repairs. Less hassle is worth it, even if 125% is given as proposed.

As a Buyer, it would depend upon the needed repairs. If it's something I could easily do myself, I'd prefer a generous price reduction. For some repairs which would need a contractor, I'd rather have the repairs done by the Seller and subject to my inspection and approval. But for other repairs where the quality or preference of materials is more of an issue, I'd take the cash or price reduction any time.

So...negotiate what you can.
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Old 11-18-2012, 02:08 PM
 
3,269 posts, read 3,195,688 times
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You don't have to repair a thing, but if this deal falls through, you have to put every valid deficiency from their report into the disclosures from here on out. If the defects noted on the property inspection are real, AND WERE NOT OBVIOUSLY EVIDENT TO THE BUYER WHEN THEY FIRST SAW THE PROPERTY, then it would be appropriate to negotiate a lower price based upon the defects. But you should not have to drop the price for things that are obvious to a buyer when they tour the house before making an offer. They should have factored those things into their initial offer, since they could see them for themselves.

Point is, if they're trying to force a lower price with an aggressive inspection, you might want to tell them to take a walk. If they want the house, they'll cave in. You're under no obligation to do anything - everything is negotiable.
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Old 11-18-2012, 02:20 PM
 
12,973 posts, read 12,021,869 times
Reputation: 5397
Quote:
Originally Posted by RE Skeptic View Post
Are implying that sellers should not only pay for all requested repairs, but actually pay an additional premium?

Love that rationale if you were my buyer agent. If you were my listing agent and tried this line on me, I would fire you.

It all depends on perspective. Buyers should not assume that sellers will pay for any or all repairs and sellers should expect to give some concessions for repairs. Where on the spectrum the price falls depends on who wins the negotiations.

OP, wait for buyer to submit request for repairs and counter with a lower #. Would not recommend offering repairs + 25% out of the gate. Most buyers would be thrilled to get cost of repairs. Dont know your exact situation but the amount you concede depends on numerous factors: offer price, your motiviation (deparation) to sell, buyer motiviation, etc.

This an area where the interests of your buyer agent (if you have one) conflict with yours. Your BA wants the deal to close and if you have to pay additional repairs to make it happen no skin off their back, just off yours.
Actually the customary amount to offer is twice the price quoted by a contractor. That may well vary but on the open it up and fix sort of things I would never settle for the bid. I would tell you to fix it.

There are things that can be precisely known...ie the value of an appliance. But fixing a roof leak can often open Pandora's box.

NOte that it is often better to lower the price than provide a credit if financing is involved. Banks are known to suddenly develop cold feet if they see even a small repair credit.
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Old 11-18-2012, 03:52 PM
 
397 posts, read 487,846 times
Reputation: 210
Quote:
Originally Posted by lvoc View Post
Actually the customary amount to offer is twice the price quoted by a contractor. That may well vary but on the open it up and fix sort of things I would never settle for the bid. I would tell you to fix it.
Not sure where you live, but have never heard of a "custom" that dictates that the seller pay 2x the quote for a repair.
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Old 11-18-2012, 04:39 PM
 
Location: Lexington, SC
4,281 posts, read 10,198,380 times
Reputation: 3700
Quote:
Originally Posted by jackmichigan View Post
As a Seller, I would prefer just to lower the price or give a credit at closing so that the Buyer could cover the repairs. Less hassle is worth it, even if 125% is given as proposed.

As a Buyer, it would depend upon the needed repairs. If it's something I could easily do myself, I'd prefer a generous price reduction. For some repairs which would need a contractor, I'd rather have the repairs done by the Seller and subject to my inspection and approval. But for other repairs where the quality or preference of materials is more of an issue, I'd take the cash or price reduction any time.

So...negotiate what you can.
Jack

Nothing personal, but the above bold would scare the hell out of me as a seller. I would never agree to "your inspection and approval".

I would either "buy" you off with discount sale price, closing costs, whatever but never would I agree with based on "your inspection and approval". It is to subjective, could cost me money, and you still could back out no matter what I do.

Again, nothing personal.
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