So you are selling your house and the buyer's house inspector found items. Should I make repairs to my house or offer cash to buyers? This question is asked very often of realtors during the process. A buyer makes an offer usually with a contingency of home and termite inspections.
What this usually means for the seller is that there will be things that the buyer wants to be repaired. This is how the "make repairs to my house or offer cash to buyers" arises. There is no perfect answer because it depends upon what the inspector finds. If the inspector finds small stuff e.g. missing window screen, garage door remote missing then it's probably better to just buy those items.
When that list of "small" items starts to grow, perhaps it's time to take another approach. You can say no to making the repairs and possibly lose the sale or you can agree to fix some, most, or all of the items. At this point, you may want to get an idea of what the cost will be to make that long list of small repairs.
Tell them no
Sellers are under no obligation to fix anything. The buyer can back out of the deal since a successful inspection is a contingency of the sale. If the items are minor most buyers will not back out at this point. They will have paid for the home inspection and are well into the process.
You could tell them no, you will not fix anything. You risk losing the sale but the risk will usually be weighed against the cost of those repairs. Sometimes the inspector finds a long list of small things that most homeowners can fix on their own without professional help.
You may be living elsewhere and not able to do any of the minor work on your own. This means you have to hire someone to do all of the fix-it items. Should you think this is too much effort, you can tell the buyers to take care of it when they close.
Tell them you will give them X$ in closing
Most of my clients either fix the small stuff or give some money in closing. I recently sold a house valued in the mid $400k range. The house was only five years old. There were about 10 very minor things. My client gave the buyers $1,000 in closing to have them do the work when they closed.
There is another good reason to throw money at the problem. Closing is not delayed waiting for a plumber to replace some old pipes. The new owners can have it done with your money after closing. With all of the work people are doing at their homes, it's hard to get workers out and keep the closing date.
While there are several good reasons to throw a small amount of money at this, one is that if the problem is bigger, it's their problem after closing. The best advice here is to make sure you get what you need at the asking price and expect to spend some money after the inspection.
Closing cost assistance
Some agents offer closing cost assistance upfront as part of a response to the initial offer. If the buyers do not ask for it but want a lower price, you can give them closing cost assistance in closing. For example, give them $5,000 at the closing table instead of lowering the cost of the property.
The net result to you is the same but you explain that the closing cost assistance is to cover minor things found in the inspection as well. This can help you and avoid the back and forth with the inspection results.
Make repairs before you list
You should clean the property and make sure the outside is looking good. Mow the lawn, pull the weeds, and replace dead shrubs. If the carpet is stained, get a professional out to clean it. Touch up paint the interior. If you are a smoker, you may need to repaint a room or two.
Do not replace the kitchen counters or flooring. Do not replace any flooring unless it is very badly worn. If you must replace flooring buy the most inexpensive you can find. Some new owners will immediately rip it out and put in what they want.
Clean the bathrooms, and remove stains. Call a
