We are in a situation to sell our house. After inspection, the buyers came back with a list of fixes, several fixes are big items like could be around thousand. Which is the better approach to settle this...cash offer at closing after an estimation, or proceed with fixing? Closing date on the contract is 30 days away from now.
We're in a similar position where we know there are major repairs that will need to be done to the house. Either list your house for a lower price and sell it as is or offer to take the cost of the repairs off the listing price. The problem with fixing the problems is that they can still get out of buying the house if the fix is not up to there standards. In my opinion it's safer to just take some money off the selling price and let them worry about fixing it themselves.
edit: Give them back a counter offer stating that you are not willing to do the repairs needed, but that you will reduce the cost of the house to reflect the price of the repairs. Doing the repairs for them runs the risk of them not being happy with the quality or with finding further problems. Most people will be just as happy to have the price of the house reduced, they can still get the loan for the same amount and just put that money towards the repair costs themselves. I would refuse to sell to them if they are unwilling to take this arrangement.
Money off the price of the home, you never know when one fix will lead to another. What seems to be a simple repair sometimes can turn into something else. There could be legal issues about paying cash to each other at closing.
Another problem could be; What if they don't close, something goes wrong with the loan and the deal falls apart. You just spent the money on fixes they wanted buy they can't buy the home. What if they aren't happy with the fixes? Your next potential buyer will probably still come up with more fixes.
Discounting the price is the simplest way.
Lower the price of the house.
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