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Real Estate Fight Club

27
Apr 2020

Episode 31: Repair Requests: Get It Fixed or Ask for the Cash?

April 27, 2020

In Episode 31 of the Toe-2-Toe Podcast, hosts Jenn Murtland and Monica Weakley duke it out over whether you should get things fixed or just ask for cash when you run into repair requests during a transaction. Hear why Jenn almost always asks for cash and why Monica follows her client’s lead on this decision. 

Episode Highlights: 

  • When repair requests are an issue, should you get something fixed or just ask for the cash?
  • Jenn asks for the cash, coming at it from the perspective of the listing side. She doesn’t want to deal with complaints about how the work is done.
  • She feels that the buyer should take care of the repair with the vendor of their choice.
  • Monica makes this call based on what the clients want.
  • For instance, if the buyer is your client and wants to do the work themselves, that makes sense.
  • Jenn points out that this also depends on the house and how well it has been maintained.
  • If the seller has done a lot of DIY, she doesn't want them touching anything.
  • Monica reiterates that it is our job to ask what the client wants.
  • Monica explores what should be done when people are not 100% sure about the scope of the repairs.
  • Jenn suggests that in that instance, it can be a good opportunity to extend the inspection period or to open up a larger escrow.
  • Jenn describes how using escrow for repair funds can work.
  • Monica generally agrees with Jenn but feels open to what her clients want to do.
  • Most agents surveyed said they would ask for repairs over the cash.
  • Monica reminds us to be in tune with our clients.
  • Jenn recommends getting the cash.

3 Key Points:

  1. Some agents will ask for the cash because they want the buyer to be responsible for taking care of the repair. 
  2. Sometimes your client will want the repair done. Listen to them and understand where they are coming from.  
  3. When you don’t know the potential scope of repairs, consider using escrow to manage that aspect of the transaction.

Resources Mentioned: