Closing credit to buyer

[Alec Frasier]

I’m pretty unfamiliar with this and have not found a lot of information on it but we are in the middle of closing on a duplex and the buyers wanted some work done prior to closing. We decided we weren’t going to perform the work they wanted. Our selling price is 172k and the amount of work wanted sums up to about 6k+ (laminate flooring in kitchen and bathroom, new plumbing, new appliances). Would giving the buyer a credit at closing mean a drop of purchase price or out of pocket money at closing in the total for estimated work needed?

[Brady Potts]

@Alec Frasier The title company will take the full purchase price from them (their down payment and loan) and "give" you the full amount. Then, they will turn around and give them back the credit amount. This all happens instantaneously. In reality, its like reducing the purchase price on your end, but its a creative way for tenants to "pay" the full price but get cash back out to fix the items. Does that help?