Sellers have to be prepared to make repairs for buyers, while buyers need to understand that it is a used product when you are not buying new construction.
As a seller, you want to make sure your home is in the best possible condition for your buyers. You can create advanced investments to make necessary improvements, but typically throughout the real estate transaction, inspections will be conducted. The buyers have the right to perform inspections, and if they are paid for by the buyers, they can then negotiate with the seller additional repairs to the home. At the time of the offer, the buyer will have their real estate agent add in their offer the repair provision.
Buying a home that is not new construction is like buying a used car. There is some wear and tear, but you have to assess your expectations versus what you need. You can then add negotiating the repairs into your offer. You can request the seller to accomplish updates on your behalf. Or, your real estate professional may advise you that the price listed is fair and takes into account the need for these improvements, giving you enough money to then invest in those updates even after the purchase. Or the real estate professional may advise negotiating a lesser price to provide you more funds to conduct the work independently. There are various options, but the “Repair Provision” in the offer allows you to make those recommendations and is a primary part of the negotiating process.
When finding the best real estate professional for you, consider asking them how they utilize the repair provisions on behalf of their clients. This can be a way to open up a dialogue on the various tactics and ensure they have your best interests in mind. This conversation in advance can also help you to prepare for buying or selling. If you are a seller, this can help identify potential early updates and repairs that could increase your market value. As a buyer, this may help determine the amount of savings you may need in place to do updates on your own or even influence your purchase price.
Steve Prescott shares his experience with repair provisions in the Financial Friday video below. If you have additional questions about how the repair request process works or you have other Cheyenne real estate questions, please give us a call at 307-635-0303 and we’ll be happy to help you!