Home Inspections: Repair it or Credit it?

If you’re buying a home in Florida and something comes up on the inspection, you’ll usually hear you have one of two options: back out or ask for repairs. But there’s a third option not often exercised in Florida: a credit in lieu of repairs! Here’s why: Repairs are nice to have done by the seller, but maybe a credit is even better for you as a buyer (and good for the seller too — a win-win!). Find out why in this 2 min 27 sec video or read below:

1. When a seller agrees to repairs, the seller, NOT YOU, chooses the contractor.

That doesn’t mean they’re doing anything wrong, but remember sellers do have an incentive to keep costs as low as possible. I never met a seller excited to spend more money on a house they’re selling! That doesn’t mean bad faith. It’s just human nature. But YOU’RE the one who has to live with the repair. When you receive a credit instead, you choose who does the work. You pick a contractor you trust. You oversee the repair yourself to make sure it’s done right. You’re not inheriting work that you didn’t see being done.

2. Flexibility for YOU.

Seller repairs usually bring things back to working condition. That’s it. A credit gives you options. You can use the credit to make the repair. Or you can combine it with your own funds and UPGRADE instead! For example, maybe the built-in microwave is broken or a bathroom light fixture doesn’t work. The seller is very likely to replace these with the most basic options. With a credit, you can upgrade to something you actually want: Maybe smart lighting. Maybe a better fixture. Maybe a style that fits with your remodeling plans! Same issue. Very different outcome. Repairs lock you into a solution. Credits give you choices. This doesn’t work in every situation, and this is important to note. If a repair is required by insurance or by the lender, a credit usually won’t work. That’s common with 4-point inspection issues: Roof condition. Electrical panels. Plumbing. H.V.A.C. If those items affect insurability or financing, the repair typically must be completed before closing.  

Repairs and credits both have their place. The right choice depends on your individual situation. Buyers should understand both options before asking. And if you want more clarity like this, contact us.