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Repair Holdback Calculator

When seller commits to repairs but can't complete by close, buyer holds back funds in escrow. This calculator sizes the holdback and release schedule.

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%
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Total holdback

$56,750

Contingency buffer

$11,250

Base repair total

$45,000

How the math works

Repair holdback = repair estimate + contingency + re-inspection. Cover cost + overrun + admin.

Document the scope in writing with contractor identity, completion date, and inspection requirement. Without detail, disputes arise over 'acceptable completion.'

How to Use

  1. Enter list of outstanding repairs (total).
  2. Enter contingency %.
  3. Enter target release date (months).
  4. Read total holdback.

Frequently Asked Questions

Why holdback vs credit?

Credit at close = price reduction. Holdback = repairs still happen; buyer gets property as-promised. Use credit if trust is low; holdback if seller committed.

Typical contingency?

20-30% over cost estimate. Holdback should cover the cost to complete if seller doesn't. Insufficient holdback = buyer holds the bag for overruns.

Release timing?

When work complete with lien-waived invoices + signed buyer inspection. Set target release 60-120 days post-close. Beyond that, renegotiate or force completion.

How do I benchmark this?

Benchmark against industry data from NCREIF, IREM, Yardi Matrix, CoStar, or RCA. Institutional operators also benchmark internally across their own portfolio to identify operating outliers. A single number means little; the trend and the peer comparison mean everything. Run quarterly benchmarks and note deviations that exceed 10% — those warrant investigation.

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