What to we do with an amendment requesting repairs?
In your contract, paragraph 23 gives the buyer the right to end the contract for any reason. Usually for 7-10 days. We call this the time the “Option Period”.
During this time the buyer inspects the home to determine if the condition is acceptable. The buyer’s choice is to end the contract and get their earnest money back, take the house as-is, or negotiate.
The negotiation begins with a contract amendment sent from the buyer’s agent. Usually, with a list of repairs for the seller to complete before closing. Sometimes, it is a few little things or sometimes it is a big list. Rarely, is the home accepted as-is without negotiating. All houses have some problems and the seller does not have a duty to do any repairs.
The seller’s options are (1) accept it and do the work as requested, (2) offer money for some or part of it, (3) refuse to do some or all it, or (4) agree to some combination. The amount of money is the consideration of the cost to get the work done. If we offer money we offer it first in the form of a reduced price to further protect the appraisal value. Second as a payment towards buyer closing costs.
Sometimes it is a tough negotiation. Usually, an agreement must take place for the contract to continue. If the buyer does not terminate before the deadline the contract continues and the unrestricted right ends. Buyer and seller must consider their options to establish their negotiating position. Any repairs made by the seller must be in accordance with Paragraph 7.