Published January 15, 2021

Repair Needed Per Inspection Report- Who Should Handle It?

Written by Shanna Day Team

Repair Needed Per Inspection Report- Who Should Handle It? header image.

Inspection report comes in and state repair is needed- who should handle it? If you answered the buyer and give them a credit for the repair, you gave the best possible choice.

Just think about it: first you're going to have to look for the right contractor, determine how many bids they need, what brand they should use, overrun issues (who pays for it?) and more. Would the buyer like the quality, color and product- or should they even have any input before the work has been started? Is the warranty even transferable to the buyer? Definitely a lot of things to take care of especially when you're trying to close a deal within 30-60 days. Not to mention, there are city environmental requirements and other factors that could cause delays to the flow of things if not met.

Giving buyers a credit for the repair also saves time- as well as the headaches- from what would be a difficult additional negotiation nitpicking over a list of what to fix from picky inspection reports.

The catch with issuing buyers a credit for the repair work? Lenders might look at a credit issued for a work as a reduction to how much the buyer is putting down. A possible solution to this is for the funds for the repairs escrowed by the closing agent only to be released once the documentation stating completion of the work needed has been provided by the buyer.

Source Article:

inman.com