Q: We are in the middle of buying a house and just got finished with the inspection.

There were several things that needed fixing. The seller prefers to just reduce the price by the amount they think it would take to fix things, but we’re not sure that’s a good choice. We are working with an off-Island real estate agent who says we should ask for an allowance to cover the costs instead. What do you suggest?
A: I have a preference for having the work done and the seller paying for it prior to closing. I have been doing this long enough to have sold a few houses more than once. It’s always distressing to find that the same repairs that were needed a few years ago are still not completed because the buyers took a price reduction or an allowance and didn’t do the work. It also means that what might have been a minor fix years ago is now a major expense.
The agent involved realizes that, in most cases, his commission will be reduced by a price reduction so that may be why he is lobbying for an allowance. The allowance may be a good idea if it reflects the true cost of the repairs but without bids from professionals who can do the work, neither you nor the seller has any idea how much it will cost. You could take an allowance or a price reduction and then find that the repairs cost twice that much.
I would suggest trying to negotiate having the seller do any major repair work before closing and then offering you an allowance for the smaller stuff that you can do after closing. Keep in mind that some repairs could be called out by the appraiser in which case someone has to pay to have the work done before the bank will close on the sale. Then the most important thing….do the repairs!