Hi All! Is it better to get a credit for repairs or reduction in sale price? My thinking is that it'll be less closing costs (because the purchase price is reduced), payments may be lower overall if I ask for a reduction in sale price?
Hi All! Is it better to get a credit for repairs or reduction in sale price? My thinking is that it'll be less closing costs (because the purchase price is reduced), payments may be lower overall if I ask for a reduction in sale price?
Fropm broker perspective, ASK FOR PRICE ADJUST UNLESS ITS A DEAL STOPPER:
1) Seller quality and buyer quality of repairs are two different things
2) Seller motivated more by paying less for repairs than quality of the repairs
3) Back-n-forth on repairs can eat up a lot of time
4) Sometimes warranties follow the person that paid for them and not the property
5) Sometimes sellers "forget" to pay a contractor = Potential mechanic's lien
Depending on what you are doing there may be a tax benefit as well. Check with your CPA to see if they have an opinion.
I also view both as simple changes and no significant difficulty from a paperwork perspective.
If using financing or hard money be sure to check with the lender as well. I know in one case I asked about allowances/credits on the closing and my HML said absolutely not.