Buying a house - requesting credit at closing in lieu of repairs (2013, lender)

[Jkgourmet]

There's history to OP's attitude. Inspection was a week ago, no word from buyer. What gives?

[DetroitN8V]

Originally Posted by starla

Yeah, I may just get out. I don't think the homeowner is going to do it himself. I think the homeowner is going to find the absolute cheapest contractor to do it. Or the homeowner might decide to offer a credit. Or the homeowner may decide to tell me to go to hell and cancel the contract himself. I would be fine with either of the last two options, but my problem with it is that I don't get to find out which option the seller is going to take until I give up my right to back out of the deal.

Still, nobody has explained why I can't ask for a credit. If I'm the one paying the hundreds of thousands of dollars, and I would rather have a credit than let the seller do the repairs, I don't see why I can't even ASK for that. The only explanation I've seen so far is that the form doesn't allow it, which seems like a lame reason. If that's the case, then I don't feel I'm getting good representation from my realtor.

It's because the inspection period is not the time to be renegotiating the financials of the deal. You already contractually obligated yourself to purchase the house at the agreed upon terms, under the assumption that there are no material defects. The inspection period assures you that you will purchase the house in the condition in which you believed it to be in at the time the contract was signed. Requesting repairs from the seller ensures that you only close if it is in such condition, but aside from it not being as such, you're committed.

[ElleTea]

You might try asking your question here:

https://www.city-data.com/forum/real-estate/

Or do a Google search for a real estate specific forum if you aren't getting answers from your Realtor

[starla]

Originally Posted by DetroitN8V

It's because the inspection period is not the time to be renegotiating the financials of the deal. You already contractually obligated yourself to purchase the house at the agreed upon terms, under the assumption that there are no material defects. The inspection period assures you that you will purchase the house in the condition in which you believed it to be in at the time the contract was signed. Requesting repairs from the seller ensures that you only close if it is in such condition, but aside from it not being as such, you're committed.

Asking for a credit in lieu of repairs has not ever been a problem before. If this were the reasoning, it would be disallowed in all states, not just AZ. But the reasoning doesn't hold water. You can try renegotiate a contract any time you want. The other party can say no, or make a counter offer. This is no different whether I request repairs or request a credit. So I don't see the problem.

Originally Posted by ElleTea

You might try asking your question here:

https://www.city-data.com/forum/real-estate/

Or do a Google search for a real estate specific forum if you aren't getting answers from your Realtor

I think I will post over there. I did a Google search and all I could find was that it is not an option on the standard AAR form, and that realtors think lenders won't like it, not that it's illegal to ask.

Regardless, if asking for a credit is not an option and nobody can point me to a LAW that says so, I'm going to walk on the deal. I'll tell the seller that the reason was a disagreement between myself and my realtor, and hopefully that explanation will satisfy any future buyer who asks why it fell out of contract.

[AZ Manager]

Put in the request and see what the seller says. Have your realtor tell the selling agent you would prefer a credit toward the roof if the seller wants to go that route. Putting in the request doesn't end your inspection period so if they accept to repair then you can cancel.

[DetroitN8V]

Originally Posted by starla

Asking for a credit in lieu of repairs has not ever been a problem before. If this were the reasoning, it would be disallowed in all states, not just AZ. But the reasoning doesn't hold water. You can try renegotiate a contract any time you want. The other party can say no, or make a counter offer. This is no different whether I request repairs or request a credit. So I don't see the problem.

No you can't. A contract is an obligation. What you're suggesting is that you have no commitment to the terms that you already agreed to and can try to adjust them at any time. You can't do that.

[starla]

Originally Posted by AZ Manager

Put in the request and see what the seller says. Have your realtor tell the selling agent you would prefer a credit toward the roof if the seller wants to go that route. Putting in the request doesn't end your inspection period so if they accept to repair then you can cancel.

If that's true, then that would be acceptable. However, the form states "Buyer is not entitled to change or modify buyer's election once this form is submitted." My understanding was that submitting the form effectively ends the inspection period, but that isn't explicitly stated in the contract. I will ask my realtor about this. Thanks!

[Zippyman]

Originally Posted by starla

If that's true, then that would be acceptable. However, the form states "Buyer is not entitled to change or modify buyer's election once this form is submitted." My understanding was that submitting the form effectively ends the inspection period, but that isn't explicitly stated in the contract. I will ask my realtor about this. Thanks!

You've already agreed to a purchase price & the seller has presumably taken the home off the market because they believe you're a serious buyer, but you're not a serious buyer, you're playing games. Hopefully, the seller figures that out soon & sends you packing.

[starla]

Ok, well I was right in that submitting the repair request does effectively end the inspection period. And I was also right in that there is no reason why we can't request a credit in lieu of repair. My realtor has completely changed his tune on this and will just write it into an addendum. I don't know if he asked around his office and found out that you can in fact ask for a credit, or if he just didn't want to and thought I would just go along with whatever he told me.

Thanks for all the insults though, you guys were a lot of help!

[lvmensch]

In most cases like this I would ask for a credit if it was a cash or high cash deal or a price reduction if it is financed on FHA or VA or any low down mortgage.


It is perfectly acceptable to ask for a credit on any deal but can cause problems with the mortgage. Talk to your Mortgage guy before you do any form of credit. In general dropping the price causes no problems.

Such a thing is acceptable in all the Western states. Go back east you are on your own as they can have state specific laws on all sorts of stuff.