Seller credit for roof?

11 Replies


I'm in the process of purchasing an older 3 unit building in South Chicago and the inspector said the roof is at the end of it's life and it could cost about $20K to replace it. Should I be asking the seller for a credit? If so, how much?

Thanks in advance for any assistance.

I'd ask for $20k and see how they respond @Michael Boyle

Even with the seller credit, you'll still have to pay out of pocket for the maybe consider a backup plan...I'd rather have cash than the credit...have the seller take the full proceeds and write you a check for $10k at closing...

good luck! 

@Brandon Sturgill is 1/2 right there. I’d definitely “try” for the full credit if possible. It never hurts to ask and see what they say.

One caveat is how was the roof/property marketed? Did they say new(er) roof? If not, then I doubt the seller will be willing to give too much based on the fact he/she knew it was old and probably took that into account with their list price and ultimate contract price.

Where Brandon misses is the 10k credit at closing idea. Different states have different rules but in IL, ALL money exchanged must be disclosed to all parties at the closing. There’s no more “under the table” exchanges after a closing or the lender will not be happy at all. Fully disclose always man and you’ll be fine

As for the credit and see what they say!! Good luck

@Ted Kuhlmann Thanks Ted. My attorney did say cash at closing was illegal so there is that. But the bank told me that if we had a separate contract to pay for a portion of the roof repair that would be fine. Not sure exactly how that works and if all is above board.

@Brandon Sturgill : Hi Brandon, I'm in the similar situation with her as well. Haven't submitted the contract yet but seller has noted that they would be willing to credit $20k. Personally I want to money to fix it myself, however if following the lender's policy I'm only able to get 3% credit from sellers and it will go to closing cost... You mentioned that we can ask the seller to take full proceeds and write the check at closing. When in the process + How do you mention that to them and in which form of contract?

Thank you!

@Matta Nguyen @Michael Boyle What the resolution here for you? We are negotiating right now for 2 units. One of the roofs has to be replaced. With an FHA loan you can now get a 6% credit back at closing to cover some costs. So we can finance in the cost of the roof ($11K) We are actually offering this to the seller today. I'll let you know how it goes.

@Dustin Cady hi Dustin,

So i ended up not getting that place, not because of the credit but seller received a better offer. However the solution that we came up with was escrow holdback. So in that term, the seller agreed to hold certain amount of money for problem that needed to be fixed in escrow account after closing ( i think they have to put certain percentages higher than the bid from verified contractor). After close, the money is going to be used to fixed the problem, whatever left will be returned to seller.

This escrow holdback will be available depends on lender. You should definitely check with your lender to see if they have this option. If they do, verify what needs to be done.

Hope that help! 

@Matta Nguyen Thank you for the insight! Hopefully you find another house! What we did was ask for the seller to pay closing costs, which basically equaled the cost of the roof ($7,500).