How Repairs are handled in the Oklahoma real estate contract
When a Buyer makes an offer on a Tulsa home for sale, he will ask the Seller to be responsible for up to $xx in repairs – yes, the repair cap is negotiated BEFORE inspections are done. The Buyer’s Realtor should be able to estimate an appropriate amount to request.
Inspections are usually done within the first ten days after the contract is negotiated and ratified. Based upon inspection results, the Buyer will write out a list of requested repairs and the Seller will obtain estimates. If the estimates EXCEED the repair cap agreed to in the contract, we proceed in a number of ways.
The Buyer can pick and choose which repairs are needed to remain under or at the negotiated repair cap and elect to make some repairs after closing. Often, the Buyer and Seller will agree to split the excess cost, provided the Buyer wants all repairs made. And, at this juncture, either party can nullify the contract, which is rarely in the best interest of either party.
This is truly the point during the transaction where the Realtors must work TOGETHER while still representing their clients’ best interest. If I am representing the Seller, I will likely point out that they will have to make the requested repairs for ANY Buyer. On the other hand, if I am representing the Buyer, I may point out that the Seller agreed to a lower sales price, is contributing to the Buyer’s closing costs and suggest that they might wait on less crucial repairs.
Because we negotiate the repair cap BEFORE we conduct inspections, this process is confusing for both Tulsa home Sellers and Tulsa home Buyers.
I once had a cash Buyer who insisted he did not want to put a repair amount in the contract — then he expected the Sellers to make repairs after inspections, because “it was the right thing to do.” Another time, I had a Seller tell me they would fix all requested repairs, then later came back complaining that they had spent more than the amount agreed upon in the contract.
Whether you are selling your Tulsa home or making your first Tulsa home purchase, ask your Realtor to discuss the repair negotiating process to you in detail to make sure you understand your options.
At this point, everyone is proceeding with plans for their next move, so nobody wants to kill the deal over a few hundred dollars. Negotiate and compromise – real estate transactions CAN be a win-win for both Tulsa home buyer AND seller!