Oh you know what I didn’t really anticipate that you’d see I have socks on. I took my shoes off so there wasn’t the “clankiness” on the ground. But uh, anyways, lets talk about these 3 options here.
So Option 1 is you can have the seller complete the repairs themselves. Now this is really nice for a buyer sometimes because you know, you don’t have to worry about getting those repairs done when you get inside the home. The only downside, potentially, could be as buyer you don’t know the quality of the work that that seller did.
Option 2 is you can have the seller reduce the price, right? Now, depending on what your loan is, this sometimes isn’t the best option. So let’s use some easy numbers here.. you bought a $400,000 home and a $5,000 repair comes up. So that’s $5,000 to the seller, but if you reduce the price your out of pocket down payment and your monthly payment as a buyer isn’t really going to change much. Which kind of leads me into my 3rd option.
Having the seller give the buyer closing costs in lieu of repairs. So basically that $5,000 repair comes up, the buyer says “Hey, you know what, I’ll get the repair done when I move inside the home, I just want you to cover $5,000 of my closing costs.” It’s essentially the same thing to the seller as reducing the price by $5,000 but now it’s a little but more equal. It’s $5,000 savings for the buyer and its $5,000 reduction to the seller.
So that’s the 3 different options. Sometimes you can use all 3 maybe just 1 or 2, it really depends on the situation. I hope that this video was helpful and that’s pretty much the end. I gotta work on my ending on the videos. So, ya, that’s the video, hope you enjoyed, see ya next time.
Great video guys!