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Compensated for Defects or Have Them Repair It

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I was reading about a scenario today where a couple was planning to buy a house and apparently something was wrong with it where it required at least $10,000 worth of repairs to make it ideal for a purchase. Therefore, there was a debate on whether or not it was better to ask for the $10,000 to do the repair themselves or if they should just get the current owners to do it.

Asking for the money could be good or bad as the repairs can end up being cheaper than expected which means they actually gave you free money. On the other hand, it could end up costing more and therefore you ended up having to spend more. I would usually only take the money in that case once I get an estimate and assuming I personally know someone in the field that could work on the repairs and such for me. I usually find it in those cases that paying someone you know who is competent enough to do it will result in a good two way gain.

Basically, hopefully you are saving money and at the same time helping someone’s business. It’s a bit too risky to just go blindly to a unknown third party service in this case if you knew nothing about the trade as well. Therefore, in that situation I think it is better to just get the person to repair it themselves first. Way less risk for you I’d say.

one Comments to Compensated for Defects or Have Them Repair It

  • The problem with getting the current owners to make the repair is that they are motivated to do it as cheaply as possible, so this might cost the homebuyer more money in the long run if it isn’t done right.

    From the homeseller’s perspective, I think the best thing to do is to have your house pre-inspected and make every disclosure possible up front with the idea that you won’t be making any repairs. That way, the homebuyers can bid whatever they think the house is worth and make adjustments on their own for repair costs.

    joewatch 5/25/2010 10:09 am

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