Selling your home and the buyer requests repairs? Should you fix the problem yourself or offer a seller credit instead? In this video, Katherine explains what California sellers should weigh before agreeing to either.
Option 1: make the repairs. Completing repairs before closing can make sense when the issue affects safety or habitability, homeowners insurance eligibility, the buyer's mortgage financing, or the property's ability to meet lender requirements. Some repairs may have to be done before the buyer can close.
Option 2: offer a seller credit. A credit can make sense when buyers want to choose their own contractors, materials, or finishes. One important distinction: a seller credit generally goes toward eligible closing costs, not cash handed to the buyer for renovations. A $5,000 credit toward closing costs lets the buyer keep $5,000 more of their own money for repairs after closing, but the buyer's lender must approve it and loan guidelines may cap it.
Before agreeing to repairs or a credit, compare the estimated repair cost, the time the work takes, the risk of delaying closing, the buyer's financing requirements, and the credit options available, and make sure the final agreement is in writing.
If you are selling in Orange County and a repair request lands in escrow, reach out — Katherine is happy to help you negotiate a solution that protects your interests and keeps the sale moving.
Disclaimer: Seller credits are subject to lender approval, loan program requirements, and applicable contribution limits; not all credits or repairs are permitted under every financing arrangement. For the full picture, read the article on buyer repair requests in California on this site.