Thursday, June 16, 2011

Money or repairs - Albuquerque homes for sale


The question may boil down to "would you like the repair allowance in the form of a credit towards your closing costs or would you like the repairs done?"

Once inspections have been completed on a home in escrow, the buyer will more than likely ask for a few (or a lot) things to be repaired or addressed. Usually within the purchase agreement for a homes for sale there is an amount that is agreed upon before the inspections occur that is allotted for repairs. Now, this amount is entered into the agreement under the assumption that the home has no major issues. If there are major issues, then its back to the drawing board but that is a completely different blog...

Instead of doing the repairs the seller may just try to throw money at the problem to make it go away, which is perfectly find and sometimes works. By telling the buyer they can have $1500 in closing cost credits may mean that the buyer doesn't have to use all the money they have saved on closing costs. Maybe they can buy the new TV that they (usually he) has had their eyes on that would look amazing in the new living room!....and that's pretty much the problem there.

If the money is spent on a TV, then those much needed sewer line clean-outs (for example) would most likely be pushed further and further down the timeline until it is a major issue and the problem doubles or triples in cost. Which is something I would totally do but do as I say, not as I would do!

For the buyers, the best thing to do is to get the issues repaired because it is very easy to get use to the the current problems and not fix them. As time passes, the harder it will be to pay for that one issue that seems to be okay until it becomes a major issue and the money is spent else where.

For the sellers the best thing to do when selling ABQ real estate is usually give the buyer the money towards the buyer's closing costs or come down off the price of the home. That way they don't have to worry about the unknown which could be the cost of the repair being more than expected and the seller's can deal with the scheduling of the repairs.

by Tim Fish
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