Two Different Ways to Settle the Same Request
The buyer's inspection comes back with a list.
The seller has two main tools:
Repair the items.
Or provide a credit the buyer can use to handle them.
They are not the same transaction, and the difference usually decides which one protects the seller better.
Seller-Controlled Repairs
When the seller repairs, the seller controls:
- The contractor
- The quality of the work
- The cost
- The schedule
Repairs can also be completed with licensed, insured professionals who document the work, which removes the item from the negotiation and gives the buyer less to object to.
The risks are time, access and scope: a repair that drags or expands can push the closing date.
Getting the work done before the buyer's reinspection gives the seller the strongest position: the item is simply resolved.
Buyer-Controlled Credits
When the seller provides a credit, the buyer controls the work after closing:
- The buyer picks the contractor
- The buyer schedules the work
- The buyer decides how far to take it
Credits are fast and simple for the seller, and they avoid the risk of a bad repair coming back into the transaction.
The risks are financial: the credit comes out of the seller's proceeds, and it must fit the transaction's structure.
Financing Limits Change the Math
A credit is not a blank check.
The buyer's loan program and lender set maximum allowable seller concessions, and credits count against those limits.
An unusually large credit can push the transaction past what the financing allows, forcing a restructure or a different loan program.
Lisa coordinates with the lender where relevant so the credit request is checked against the actual limit before anyone promises it. The seller concessions guide covers the limits in detail.
When Repairing Beats Crediting
Repairing tends to win when:
- The item is specific, finite and economically worth fixing.
- The seller can manage the contractor and the schedule.
- The loan limit makes a credit impossible.
- Completing the work removes a negotiating lever entirely.
When Crediting Beats Repairing
Crediting tends to win when:
- The seller cannot manage the work or the timeline.
- The item is subjective, cosmetic or likely to expand in scope.
- The financing can support the credit.
- The amount is small enough that performing work is not worth the hassle.
The Price Question
There is a third option the seller should always consider: a price adjustment instead of either repairs or credits.
Sometimes the cleanest settlement is a mutually agreed reduction in the purchase price.
Lower the price, and there is nothing to repair, no credit to reconcile and nothing left to argue about later.
Whether a price change works depends on the appraisal, the financing and the seller's net.
Lisa's Approach
Lisa asks three questions before recommending a response:
- What does the seller's net looks like under repair, credit and price options?
- What does the buyer's financing actually permit?
- Which option most reliably gets the seller to closing?
The inspection problems guide is the fuller version of the inspection conversation that produces these requests.
This guide is part of the Las Vegas Home Seller Resource Center, where pricing, preparation, marketing, offers and escrow each have their own guide.
About Lisa C Hamilton
Lisa C Hamilton has helped people buy and sell real estate in Las Vegas for more than 20 years. Her business has been built largely through referrals, and she is known for proactive preparation, strong negotiation and keeping clients informed throughout the transaction.
Lisa serves buyers and sellers throughout Las Vegas, Henderson and North Las Vegas with THE Brokerage, A Real Estate Firm®. Nevada Real Estate License: S.168195. Your Friend in the Industry.
Learn more about Lisa, contact Lisa, search Las Vegas homes, or sell with Lisa.
