• CMG MORTGAGE, INC. NMLS #1820

How Credits Impact Buyers and Sellers

  • June 22, 2017

Buyers may request seller credits, like property inspection credits, after the contract is signed.  Asking for credits is somewhat common, so sellers should be prepared to avoid unexpected costs.

Almost every real estate contract will include a property inspection to verify there are no issues with plumbing, electrical, pool, or roof.  When damage is discovered or repair is necessary, some buyers will request credits or a reduction in the price of the home to cover repairs. 

To reduce the risk of unexpected repairs, sellers can conduct a private property inspection before listing.  If any needed repairs are uncovered during this inspection, the seller can factor this cost into the price or include an “as is” clause in the contract.  In some heated housing markets, the buyer may choose to go through with the sale.  The seller can also complete any work ahead of time, before the home is listed.

In some cases, especially in a seller’s market, the seller may reject the request for credits.  After significant time investment, most buyers and sellers will still proceed with the transaction, rather than start over. 

 

Sources: Zillow

Kimberly Allen
Branch Manager
NMLS # 431903
Branch NMLS # 1666986


Kimberly Allen

PHONE: (415) 324-1000
kimallen@cmgfi.com

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© CMG Financial, All Rights Reserved. CMG Financial is a registered trade name of CMG Mortgage, Inc., NMLS ID #1820 in most, but not all states. CMG Mortgage, Inc. is an equal opportunity lender with corporate office located at 3160 Crow Canyon Road, Suite 400, San Ramon, CA 94583 888-264-4663. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act No. 4150025; AK #AK1820; AZ #0903132; Colorado regulated by the Division of Real Estate; Georgia Residential Mortgage Licensee #15438; Illinois Residential Mortgage Licensee; Kansas Licensed Mortgage Company #MC.0001160; Massachusetts Mortgage Lender License #MC1820 and Mortgage Broker License #MC1820; Mississippi Licensed Mortgage Company Licensed by the Mississippi Department of Banking and Consumer Finance; Licensed by the New Hampshire Banking Department; Licensed by the NJ Department of Banking and Insurance; Licensed Mortgage Banker – NYS Department of Financial Services; Ohio Mortgage Broker Act Mortgage Banker Exemption #MBMB.850204.000; Licensed by the Oregon Division of Financial Regulation #ML-3000; Rhode Island Licensed Lender #20142986LL; and Licensed by the Virginia State Corporation Commission #MC-5521. CMG Mortgage, Inc. is licensed in all 50 states and the District of Columbia. Offer of credit is subject to credit approval. For information about our company, please visit us at www.cmgfi.com. To verify our complete list of state licenses, please visit www.cmgfi.com/corporate/licensing and NMLS Consumer Access (www.nmlsconsumeraccess.org).