I just got another contract on a listing of mine. It's always a good feeling when you're helping a Seller towards their goal. Now the Option Period has begun and the Buyer will most likely have the home inspected and notify us of any repairs which they feel are necessary. The seller and I will then have the opportunity to decide if we agree that these repairs are necessary (i.e. almost any Buyer would want these items repaired) or if we feel that the Buyer is being picky (they are, after all, buying a pre-owned home).

Generally, repairs can be handled in two ways (it is up to Buyer and Seller to decide which they choose/approve of): 1) The Seller can have the items repaired prior to closing (by a licensed contractor for those items that require licensing like plumbing, electrical, etc.) or 2) Cash (generally from the Seller's equity) can be applied towards the buyer's closing costs (or off of the sales price) in lieu of said repairs. Personally, I prefer option #2 as it helps insure that the Buyer gets to pick who does the work and the Seller is not blamed if the work is not satisfactory. Of course, then the debate is how much cash do you give or how much will the repairs cost? I always tell my Buyers that if you let the Sellers do the repairs themselves, they will generally hire the cheapest contractor they can find (or do the repairs themselves if a license is not required). So, if a Buyer thinks a repair will cost $500, and the Seller gets a quote for $250, you can either choose to have their contractor do the work, or take the $250 and apply it towards the contractor of your choosing. It's generally difficult to get more if the Seller has a written quote for less (i.e. why would they give you more than $250 if they have a guy who will do the work for that amount). Ultimately, many repairs are a matter of opinion. Some Sellers fell that, if they have accepted a price that is less than they wanted, few (if any) repairs should be done. Conversely, if Buyers don't feel that they are getting a "steal of a deal" (or if there are plenty of other homes to choose from) they often want every little detail fixed. The truth generally lies somewhere in the middle. I always say that major items (i.e. the roof, A/C, disposal & dishwasher) need to be in good working condition unless the property was advertised and priced for an "as-is" condition. However, every light bulb will not be new, a fan may wobble slightly, and there may be a small hole in the wall where the doorknob hit it (if you want a new home, go buy one... pre-owned homes are not perfect). Ultimately, the goal is to get major repairs addressed so that the Buyer can feel confident moving in, and the Seller can feel that they did what was necessary to sell their home.