The Real Estate Black Book
This week we are talking about how to negotiate repairs with a Seller.
Just so you know, per the purchase agreement contract, the Seller doesn’t have to agree to any repairs. They can just say no.
However, so can you. If they don’t play ball, you can cancel and walk away. You have all sorts of contingencies and can cancel for almost anything.
But, both the Buyer and the Seller want the same thing, so most of the time people work together.
With the request, a Buyer can ask for two things:
1. Actual repairs. Fix the sink, fix the broken window.
2. Seller credits (or price reduction) to fix the issues after you close.
Asking for credits or a price reduction works well with superficial issues like flooring, finishes, etc.
The seller doesn’t care about the condition of the property anymore so they won’t have the same standards as a buyer would.
Also, be aware that once you open escrow with a Seller, they begin to do “Seller Math”.
The listing agent will give the Seller what they call the net proceeds which calculates how much the Seller keeps after the sale. The price, minus the loan amount, minus the cost of selling.
Any dollar you ask for after it closes (according to the Seller) is coming out of their pocket so this part can be challenging.
Because of this, being open and honest up front with your agent and the Seller is super important.
Learn how to ask the difficult questions now, because they get more difficult when this gets further down the line and things fall out of escrow.
1 in 3 deals that open escrow never close. This happens because the Buyer and the Seller don’t communicate as clearly as they can.
Tune in next week when we talk about the differences between needs and wants. How to actually describe your dream home.