How To Respond To The Request For Repairs By Buyer

What'due south the Best Way to Resolve a Request for Repairs in Residential Real Estate? Advice for Buyers and Sellers

John LaRosa 06/28/2018

It seems uncomplicated, right? Hither's what'due south wrong with the house…ready information technology. Everyone's happy. Right? Right?!? If only it were actually that simple. Read on for more info about why the proper resolution to a Asking for Repairs isn't as elementary equally just fixing the requested items and for a word nearly the options that are available to both parties. This article is for Buyers and/or Sellers.

Please annotation that the information in this article pertains ONLY to California residential existent estate transactions and is upwards-to-date merely as of the date of this article's publication. You lot should ever consult a licensed professional person before making any decisions that pertain to whatever particular real estate transaction.

What is the Request for Repairs?

The Request for Repairs is a document submitted by the Heir-apparent sometime afterward the Home Inspection and sometime earlier the end of the Buyer's Inspection Contingency. Information technology is past no ways required and is sometimes non-existent in real estate transactions. It is a list of items that the Heir-apparent wants repaired, wants more information about (ordinarily documentation), or wants some other dispensation for (ordinarily money). It is up to the parties involved and their agents to make up one's mind what becomes of the asking.

The Seller Has No Inherent Obligation to Complete the Request for Repairs

Earlier we jump into this permit's get one key detail cleared up. The Seller is NEVER required to do any repairs to their home, regardless of the Buyer's requests, unless and until the Seller agrees (or has already agreed) to brand those specific repairs in writing or when those repairs are required by law (non many are).

At that place is null legally binding about the Asking for Repairs when it is submitted. Information technology is but a request. In some rare cases a Seller may choose to make no response at all. Whether the Request for Repairs becomes a larger matter or whether it is resolved quickly and becomes a binding document is entirely upwards to the parties involved. Simply when it comes to contracts and negotiations, everything is up for grabs.

Why Isn't Information technology a Good Idea to Allow the Seller Be Responsible for the Repairs?

In about cases, the Buyer will either ask the Seller to make sure repairs before closing, or they will ask the Seller to give them some dollar amount back during the closing process, every bit a credit to their closing costs. At first glance, it may seem like one option is easier or improve but in ALL situations, the ease and/or difficulty in completing the Asking for Repairs has more to do with the parties involved than it does with the volume or scope of the repairs. Put another manner, personalities and our personal lives are often more relevant than logistics and dollars when trying to successfully navigate a real estate purchase and/or sale.

Here'southward an example. The Seller has decided to consummate the repairs earlier the closing but they required that the Buyer sign-off on (consummate) their Inspection Contingency (learn more nigh Contingencies in real manor) as a stipulation of their offering to do the repairs. Unproblematic, right? Well, if the Heir-apparent signs off on their Inspection Contingency they have given up their right to abolish the contract due to the belongings's status. The Seller completes the repairs only the Buyer isn't happy with the chore the Seller'south contractors did.

This won't happen every time but it Volition happen sometimes, and if you aren't prepared for it, it can go a problem, FAST.

The Buyer can insulate themself from this by requiring a sign-off or approval from the Buyer (or better yet, a third party) in an addendum that will determine when the repairs have actually been "satisfactorily completed". This would permit the Buyer more recourse were the Seller to complete the repairs negligently, merely only to a sure extent. Having a tertiary party as the designator of approval is the best motility because it helps BOTH parties feel confident about how the results will plow out.

If yous're the Buyer, hither's an important reminder. This isn't an opportunity for y'all to nit-selection every aspect of the repairs. If the Heir-apparent agrees to let the Seller fix the repairs the Buyer is agreeing to let the Seller fix the repairs. Get information technology?

Hopefully, the Seller will do a great chore fixing the repairs. It's more likely the Seller will exercise an adequate job fixing the repairs. Information technology is sometimes the case where the Seller does a horrible chore fixing the repairs.

That's the big trouble and that's how it is. Welcome to reality. If they exercise a horrible job, protest. If it's a deal breaker (Is it actually a deal breaker?) then mayhap it's time to walk. Hopefully not. (Really? Deal Breaker?)

Is There A Simpler Solution?

When information technology comes to the Request for Repairs we almost always recommend the Buyer ask for a credit to offset the price of completing the repairs, though this is nevertheless simply part of a solution and depends largely on the scope of the requested items. If the list of repairs is long only most of the items are lite, handyman-mode repairs, the Seller may want to do the repairs themself. If the repairs involve larger changes and, specifically, subjective design aspects, the Seller may be amend suited offering a credit. Don't spend money repairing your home simply to take the Buyer gum up the transaction if they aren't satisfied with the work.

What's the All-time Way to Handle the Request for Repairs?

Well, whenever I'm representing a client, exist it, Buyer or Seller, my recommendation is e'er to endeavor and put yourself in the other party'southward shoes. If y'all were the one selling the home would you consider these requests unreasonable? Or if you were the one ownership the habitation, would you want to buy a home with these problems? And what would make you lot feel improve if you were purchasing a home with these bug?

When it comes to the Request for Repairs, the best motility is to offering/request credits for larger repairs and to offer/asking to have the smaller repairs completed before closing. That is, of course, bold the "larger" repairs don't involve issues that would drastically harm the value of the property.

Having Professional Guidance is E'er the Right Move

Every real estate purchase is unlike. What'south at stake, who the parties are, and what their time requirements are; those are the questions that shape the playing field when it comes to determining how best to arroyo the Request for Repairs. There is no "correct" respond, there are options and there are personalities. When you've got an experienced existent manor professional on your side, you'll become guidance and assist with BOTH.

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