When it comes to requesting repairs with any real estate dealing, we put together a radio show that speaks about how to approach as a Real Estate seller and how to approach the request for repairs as a real estate buyer.
Most of the time, requests for repairs, are straightforward. A seller can either choose to repair all items, only some items, give monetary credit, or deny all or part.
Buyers should be prepared to know that some real estate sellers may deny all.
However, requesting repairs should not be a “deal breaker” is there is too much in the way of a property needing repairs, I’d say maybe it should not have been written on.
A buyer strategy may dictate different. It maybe that buyers are looking for a “fixer upper” situation. But, even with that, the discounted property that is classified as a “contractors dream” or “needs tender loving care (tlc)”, should have it’s price addressed.
If the home is needing 30k in repairs, but is only discounted 5k from Fair market value, I’d hope the seller would have been educated by their real estate representative.
Unfortunately, in most cases they are not given the agent’s experience when it comes to various types of loan programs not allowing for financing of homes that are in need of specific repairs.
We want our sellers to know what they may expect when a Veteran Loan buyer comes to the table with an offer. We want our sellers to understand what an offer received that is FHA means reference to their specific property. The same goes with the various degrees of conventional financing – the 3%, 5%, 10% and 15% down. What should our sellers be watching out for. Then we explain to our sellers about the 20% conventional – and higher, plus cash buyers.
When it comes to representing buyers and getting to the “request for repairs” phase of the real estate timeline, we want them to know what is typical and what is “over the top”.
While a buyer asking for a request for repairs, cannot throw the deal as it pertains to the seller, it can leave a bad taste in the mouth of the buyer, if not approached with experience and knowledge.
The same goes for the seller. If they are not adequately prepared with that “could be”, they may be turned off with regard to a specific buyer and their request for repairs.
Another item that should be talked about with both buyers and sellers is the “timeline” as it pertains to the removal of contingencies and the request for repairs.
There are ways to be at the best advantage as a real estate seller and buyer when receiving or asking for a request for repairs.
A seasoned real estate team, such as our’s, can advise each participant as to what the best strategy is when it comes to receiving or submitting a request for repairs!
I’m Proud to now be serving in real estate. Be safe and let me know when you are ready, I’ll be here for you.