As part of the Midtown Atlanta Condo buying process, you will have an inspection done. You want to know if there are any issues with systems such as the HVAC, as well as knowing that all appliances are working. Once you determine there are items that need to be fixed, an Amendment to Address Concerns With Property is completed and the repairs are negotiated out.
Sometimes, it may be easier to get a credit off the originally agreed upon Sales Price of the condo. This may be ok, your loan is still in the underwriting process. But let’s say, it’s day of closing (or day before) and you do your final walk through. The repairs have NOT been made….
Do NOT adjust the sales price for last-minute repairs
Most buyers will have a list of desired repairs based on their home inspection report, and the sellers are expected to complete these repairs prior to closing.
On the final walk-through, many buyers will discover that everything on the “punch list” has not been done, and they will want a reduction in the sales price or another type of credit.
Try NOT to adjust the sales price:
1. Buyers’ loan amount will probably change, especially if it is 80% or more of the sales price (such as FHA), and this could even trigger PMI (private mortgage insurance);
2. Buyers’ loan must go through underwriting again;
3. Commissions are reduced if based on a % of the sales price;
4. Entire contract may need to be re-written.
Better ways to handle the credit (always subject to lender approval) for the Midtown Atlanta Condo Buyer:
1. Increase seller-paid closing costs;
2. Have sellers provide a home warranty or extend it for an additional year;
3. Have sellers provide a termite bond (or extend it);
4. Have sellers waive reimbursements of prorated property taxes or HOA assessments;
5. Have sellers pay for the HOA letter (if not already paying).
This yet another point and time in the home buying process when you want to have a great lender working with you to make sure there are no last minute hangups with things like this!