Seller's credit or purchase price discount?

Question

I hope everyone is having a great weekend!

If the seller offered a ~$3000 credit for repairs, would you opt for the seller's credit or price discount for the same amount. Does it matter, if paying cash? What about with financing?

Cody Steck · Answer

I'm just a rookie but it doesn't seem like it should make much of a difference either way if I am correct. Other then if it were to affect your financing contingency in some way being that the purchase price would be lower if you went that route.

I'm pretty sure it will equal out the same way on the other side.

Andrey Y. · Answer

@Cody Steck

Its a "seller's credit" at escrow vs. just a reduction in price at escrow. I will be taking care of the repairs. So in other words, doesn't make a difference?

At first, I said the seller's credit was fine. Reasoning being that it makes the value of the place higher and makes the comps a bit higher. Then I was thinking, why do I really care about comps? Since if doing a cash-out refi they will be calculating ARV based on the 3 most RECENT comps only, plus escrow fees should be a tad lower for the price reduction.

Cody Steck · Answer

Are you talking about a seller giving you a credit as in basically writing you a check for that amount? If so, I don't really see the difference with paying cash or financing in that situation. But if you are referring to the seller's doing the repairs, I would rather have a price discount so you can take that 3k and make sure the repairs get done correctly through a trusted contractor of your own. The seller might only do a half decent job to try to save some money since they are selling anyway.