Repair Credit, deduct from listing price or closing cost?

[Ken Ch]

My seller is offering us 12k Repair Credit. The agent asked if we want to deduct it from the listing price or just get it as a credit towards the closing cost.

I'm not sure which way will save me more money.

Any suggestion?

[Shaun Weekes]

Originally posted by @Ken Ch:

Originally posted by @Shaun Weekes:

Originally posted by @Ken Ch:

Originally posted by @Shaun Weekes:

Originally posted by @Ken Ch:

My seller is offering us 12k Repair Credit. The agent asked if we want to deduct it from the listing price or just get it as a credit towards the closing cost.

I'm not sure which way will save me more money.

Any suggestion?

 What is the list price?

 The listing price is $749k, Looking to get a 500k mortgage

 I would put it towards the closing costs then.  

Can you explain the benefits?

12K will pay for most of the closing costs including taxes and insurances impound account. This is saving your client one-time fees. If you use it to lower a 700+ home, it's less than 2% of the sales price. A home worth that much most likely will appreciate by more than 2% per year. My thought process is to eliminate the one-time fees. If this home were 100K then I would have said add the credit to sales price because you're lowering the price by more than 10% is significant in my opinion. Moreover, your buyer is putting down a large Down Payment so getting the home for 12k less means nothing against potentially pay $0 closing costs in this scenario.

Just my 2 cents and I hope this helps.