Cash Credit or Repairs? Which Is Best When Buying a Home?

Here’s why you should generally pick cash credits over repairs.

You've just had your offer accepted on a beautifully remodeled 1920s home, but the inspector uncovers several issues. Now, you're faced with a decision: should you ask the seller to fix the issues before closing or receive a monetary credit towards your closing costs or purchase price to cover repairs?

Typically, we recommend opting for the cash credit over repairs for a few reasons. First, everyone understands the value of money, but we may not always agree on the quality of repairs. For example, if the seller hires a contractor to replace decaying floorboards on the deck, they might choose a cheaper option that results in subpar workmanship.

"Everyone can agree on the value of cold, hard cash."

In such cases, taking the cash gives you the freedom to conduct your own due diligence and select a contractor you trust after taking possession. Additionally, choosing repairs could potentially delay the closing if finding the right contractor takes time or if materials need to be ordered.

However, it's essential to discuss your options thoroughly with your trusted agent, who can provide insight into the pros and cons of each approach. While taking cash is often preferred, there may be instances where having the seller address minor repairs before closing is the better choice. Every transaction is unique, so consult with your agent to determine the best course of action for your situation.

If you have questions about this topic or anything else, please call or email me. I am always willing to help!

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