Price reduction or credit at closing

[Andresa Guidelli]

Hey folks,

We have a commercial deal under contract and after inspection have uncovered (as expected) needed repairs that not found before signing the agreement of sale.

When renegotiating, would you go for a purchase price reduction, or a credit at closing? What are the advantages and disadvantages of both options?

We appreciate all input.

Thanks,
Andresa & Roberto

Key words: commercial real estate, negotiation, creative finance, multi family, apartment, rehab