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Repair Request vs Price Cut Calculator
After inspection, three response paths exist: seller fixes it, seller issues a repair credit at close, or seller reduces the price. Each has different cash-flow, lifetime cost, closing-timeline, and work-quality implications. This calculator lays out all three side-by-side so you can pick the right one.
Sellers often overpay or use cheaper subs
Buyer-value hit from seller work
Lowest-lifetime-cost path
Price cut
Seller repair lifetime cost
$795,159
Seller credit lifetime cost
$793,884
Price cut lifetime cost
$786,506
Monthly payment (seller repair path)
$2,205
Monthly payment (price cut path)
$2,161
Quality risk cost (seller repair)
$1,275
How the math works
Price cut wins on 30-year lifetime cost because it reduces the loan balance — every dollar cut saves roughly $2 of lifetime mortgage cost at 6.75%. Credit wins on closing-day cash needs. Seller-repair typically loses on lifetime cost because quality risk erodes value long-term.
Quick rule: use credit if you need cash at close, price cut if you plan to hold 10+ years, seller repair only when the scope is trivial and bankable (paint, drawer hardware, appliance replacement). Avoid seller-done work on plumbing, electrical, or structural.
How to Use
- Enter contract price, repair cost, mortgage rate, and term.
- Set the 'quality adjustment' — how much more/less a seller-done repair typically costs vs buyer-done (sellers usually overpay).
- See the three paths compared on closing cash, monthly payment, and 30-year lifetime cost.
Frequently Asked Questions
Why do sellers prefer to repair instead of credit?
Cash flow. Sellers sitting on thin equity often can't afford a $10K credit but can afford to spread $10K across contractor invoices. Also, some sellers believe repairs preserve more value than a documented credit (signals no defect). The math usually favors credit for the buyer.
Is a seller-done repair usually worse quality?
On average, yes. The seller is motivated to close, not perfect. They'll hire the cheapest acceptable contractor to make the inspection issue go away. Some repairs are fine (paint, appliance swap) but anything structural or complex should be buyer-controlled.
Does price cut affect property tax?
No — the assessor uses their own formula, not the sale price, though sales data feeds into their model. A $10K price cut on a single transaction rarely moves your tax assessment. Appraisal and lender ratios, on the other hand, do shift directly with price.
What's the closing-timeline risk?
Seller repairs can push closing 2-3 weeks if the scope is meaningful — contractors, permits, re-inspection. Credits and price cuts close immediately. If you're on a timeline (lease ending, moving van booked), credit or price cut are the only practical paths.
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