As we move through a home purchase with our sellers, the home inspection can be one of the stumbling blocks we have to maneuver past, particularly if the buyers (or their lender) find things that they want repaired before the closing.
Can’t We Just Give Them A Buyer’s Credit?
Well, technically, yes. You can. However, the Louisiana inspection response form indicates that an allowance for repairs is only good if the lender is OK with it. Here’s a hint. Most of them are not because it throws up a big red flag that there are defects in the property they are taking as collateral in exchange for lending the buyer the purchase money.
What Are Your Alternatives?
You have a couple of choices.
1. Go ahead and make the repairs. This is typically less expensive than any allowance that a buyer may ask for, because they are always going to estimate on the high end of repair costs while sellers tend to estimate on the low end.
2. Instead of a repair credit, offer to give those funds as closing cost assistance. As long as the assistance doesn’t exceed the maximum allowable by the lender (typically 6% of the purchase price), then an amendment to the purchase agreement can be completed and the sale can move forward.