Repairs, closing credit or price reduction after inspection (2 bed)

[RueDrew]

I’m under contract on a 2-bed, 125 m² duplex in Lima at roughly PEN 881,200. The inspection found several genuine but manageable issues, with estimates totaling about PEN 112,500. The seller has offered to arrange the repairs, but I would rather choose and supervise the contractors myself.

Would you seek a closing credit or a price reduction? A credit seems more useful for funding the work, although I’m checking whether the lender limits concessions. I also need to respond within the inspection timeline and avoid putting the deposit at risk. What would tip you toward letting the seller complete the work instead?

 

[mara_keel]

If the lender permits enough credit, I would prefer that over a price cut. Reducing the price does not necessarily leave you with cash to pay contractors after closing. Before proposing either, get the lender to confirm the acceptable structure and amount in writing, then make sure the purchase paperwork clearly records what was agreed.

 

[EvenBlueprint]

How firm is the PEN 112,500 figure? One combined estimate can hide the difference between urgent work, optional improvements and uncertainty discovered only after opening walls or floors. I’d ask for an itemised scope and at least enough detail to decide what truly has to be settled before closing.

 

[ridge.tidy]

I would not automatically reject seller-managed repairs. If financing or the appraisal makes a large credit difficult, completion before closing can be the cleaner route. The caveat is quality: the seller is motivated to finish cheaply and on time. Any repair agreement should be specific about the work and allow reinspection rather than merely requiring receipts.

 

[EvenBlueprint]

There is also a negotiating question: does the PEN 881,200 already reflect the duplex’s condition? Look at completed comparables, not just asking prices. If similar properties without these issues closed around the same amount, the inspection gives you a stronger basis for a substantial adjustment. If this one was already discounted, the seller may resist the full estimate.

 

[photosAndMoss]

I disagree slightly with treating the credit as the obvious winner. PEN 112,500 is large relative to the agreed price, so lender or appraisal constraints could make a full credit unrealistic. A blended proposal may be easier: seller handles clearly defined work before closing, with an allowed credit or price reduction covering the rest. Just don’t let negotiations run past your response deadline.

 

[horizon.able]

Seller motivation matters here. Are they trying to close quickly, or are they comfortable putting the duplex back on the market? A seller focused on certainty may accept a credit because it avoids coordinating work. One who needs the appraisal and financing numbers to hold may favor repairs instead. I’d ask that before choosing a single demand.

 

[horizon.able]

Also separate appraisal risk from repair cost. A price reduction helps only if the transaction still closes and may not solve an appraisal gap in the way you expect. Ask the lender how each option affects the loan figures, required funds and concession limits. That answer should come before you waive any inspection protection.

 

[RueDrew]

Thanks all. I’m asking for an itemised breakdown rather than relying only on the PEN 112,500 total, and I’ve requested confirmation from the lender about the maximum usable credit and how it would appear at closing. I have not agreed to seller-managed work yet. My next step is to compare the repaired-condition value with completed comparables while keeping the inspection response deadline in view.

 

[EvenBlueprint]

That is sensible. When the lender replies, check whether “permitted credit” also means “fully usable credit” in your particular closing figures. If some amount cannot be applied, you could negotiate a smaller credit plus a price reduction rather than leaving value unused. Keep any proposal subject to the protections still available under your contract.

 

[neat_paper]

One more practical point: contractor control after closing also means you carry scheduling delays and any cost above the estimates. I would keep a contingency rather than assuming PEN 112,500 is the final number. If you lack spare cash beyond the planned credit, completed and reinspected seller repairs may be safer despite the loss of control.

 

[rhea_dove]

Before sending the formal response, put the options side by side: cash available after closing, effect on financing, work completed before possession, overrun risk and consequences if the deal fails. Then make one primary request with a fallback. Multiple vague alternatives can waste the inspection period, while a clear credit request followed by a defined repair plan gives the seller something concrete to answer.