Should the buyer let the seller make the repair?

Question

I have a house under contract and after inspection the house is in great condition and meet the 1% rule. However, I have requested the seller to replace the water heater and the electric panel board. Seller accepted and said he would replace them or give me $1500 credit on the price on the house.

I have checked around and $1500 sounds like an accurate cost to get these two items done. So, at this point is there any advantage over letting the seller replace these two items or just close and I find someone to do it for me. If I find someone I can take advantage of the tax deduction. Is this enough reason to close the way it is

This is my first deal and it took me weeks to negotiate the price to were it would fit the 1% rule so I don’t want to let it go over $1500.

Thank you

Greg Dickerson · Answer

It’s always best to take the credit and have the work done yourself so you can make sure it’s done properly and no corners are cut. Make sure to get a written estimate first to verify that you can actually get the work done for that amount.

Russell Brazil · Answer

I prefer taking the credit. If the repair is done by some screw up, then you have no recourse later as you were not the customer who contracted with them for the work.

Chad Boyers · Answer

@Alvaro Rodriguez

I'd be shocked if $1500 covers both items. Here in Ohio, a professionally installed HWT is $1000+ and a new electrical panel is $1500+, depending on amperage.

If you can get a credit towards closing costs for the total amount of repairs (with written quotes for accuracy) then I would lean that way. If the seller is only willing to do a $1500 credit, then I would tell them to have both items taken care of by licensed professionals (ideally of your choosing) prior to closing. And you reserve the right to do a final inspection of the repairs to make sure they are satisfactory.

Best of luck!

Kenneth Garrett · Answer

@Alvaro Rodriguez

Not sure if your updating the panel to increase the service size, fuses to circuit breakers or the panel is damaged. A service upgrade in my area is $1500 and requires a permit and the water heater is about $1000, if you got a good deal $800. Both require permits. I usually prefer the credit so I can have it done by my contractors. Since both types of work requires permits, which in turn will require licensed contractors, it’s less hastle for you to have them do it. Ask for permits and sign off from the city.

Mike Cumbie · Answer

1500 would be pretty fair in my neck of the woods. About 650 for a new box and 800 for a H2O installed. Id prefer the credit

Anthony Wick · Answer

@Alvaro Rodriguez

When I have requested repairs during due diligence in the past, we ask for a “licensed” professional, plus proof that it was completed. If electrical, it has to be a licensed electrician. No DIY’s on these things.

Brian Pulaski · Answer

Water heater and new panel would be more than $1,500.00 where I live. Personally I would have the seller get the work done. If it was enough of a credit to cover it I would prefer to have my contractors do the work.

Should the buyer let the seller make the repair?

Should the buyer let the seller make the repair?

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