Why Seller Shouldn’t Make Repairs & Why A Buyer Doesn’t Want Them To!
April 14th, 2008 categories: Honolulu Real Estate 101, Negotiating
No home is perfect, so it seems after a buyer completes their inspection (Purchase Contract paragraph C-51) there is almost always an attempt by the buyer to negotiate some sort of concession (price reduction, dollar credit, seller repairs). In a previous blog, I talked about the benefit of handling issues through a price reduction or monetary credit. With this post, I encourage everyone to avoid (like the plague) having a seller make repairs for a buyer and here is why:
1. It is difficult for a seller to meet or understand a buyer’s expectation as to the quality of a repair. In other words, the buyer expects it to be fixed one way and the seller has it done in another manner, then upon inspection the buyer may not accept the repair. Which means problems, problems and more problems shortly before an escrow is supposed to close.
2. By giving a monetary solution, the buyer is then in a position to have the work done to his or her liking. Furthermore, the worker completing the work is answerable to the buyer. If work is done and/or authorized by the seller, the new owner may need to get the seller involved with the contractor to have a repair fixed or redone.
3. Liability for repairs could extend back to a seller. For everyone involved, it is best that when an escrow is closed all further relationships between the seller and buyer (with the exception of friendship) are severed. No seller or buyer wants to be dealing with an issue 2 years after a sale is closed.
I am not saying that sellers should never make a repair, but you (agents, sellers and buyers) should look at all other options before going there.
