Buyer Credit Through Escrow For Repairs
Two times in the last month I have seen real estate agents lower the price of their lisitng that was listed at market value because of repairs that needed to be done on the property. As prices start to go up keep this tip in mind and start to think outside of the box to close those deals.
The reason why the repairs arent being made is usually because the seller may not have the cash at hand to do the repairs. The reason why offers are not being submitted is because the buyer may not have the cash at hand for repairs. Offering a closing credit at escrow for repairs will not only help resolve this but once agents see this listed in the property details on MLS it becomes very appealing. Negotiating for repairs is tedious and at times crushes the deal. Especially on things like roofs or costly pest report repairs. Offering a regular credit on the home value or lowering the price does not remedy the problem.
Remember that the buyer still has to qualify for the listed amount and the property still has to appraise. Obviously this wont work for every property but given that I have seen this happen two times in the last few weeks I suspect its becoming common right now. Remember pest companies and roof companies are usually OK with waiting to get paid through escrow. This a great tactic to use on the VA deals as well. Good Luck!
