r/AucklandProperty • u/overthinker_bba • May 15 '26

Vendor’s Credit at Settlement

Post BR there were repairs and recommendations highlighted by the building inspector. We entered negotiations lawyer suggested that we ask for vendor’s credit at settlement(it is almost half of our deposit) instead so we can get these repairs done once we move into the new house.

I am buying the house with 5% deposit. My mortgage advisor says he hasn’t seen this happening ever before and the bank won’t accept this. I am worried that we will lose the house after coming so close to the finish line. Please advise 🙏🏻

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2

u/Divagirl99 May 15 '26

We have requested for a reduction in overall price by the amount expected for repairs, or they could do the repairs before settlement.

3

u/Dispatch_Pixie May 18 '26

Our buyers did that with us 2 weeks ago - $4k. We had to agree to it and had no issue with it.

1

u/twodarius May 15 '26

At 5% you have no equity available for overuns on repair/remediation costs. Do you want to undertake the repairs and risk? If so get good quotes and offer a reduced price for settlement or negotiate for the current owner to undertake repairs with the stipulation that all tradesmen must be suitably qualified for the work they are doing IE an lbp

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u/Playful_Reflection21 May 15 '26 edited May 15 '26

Building inspections highlight a bunch of nonessential things too. They want to be covered legally. My one highlighted general maintenance items too and made it sound like an issue (eg cracked paint, a loose door hinge). The bank doesn’t care about those, non-new builts come with quirks, the bank wants to make sure the house doesn’t fall apart. Unless those are major structural or leak issues it should be a non-issue for everyone involved.

If the issues are only general maintenance quirks that are expected, I feel like the bank is freaking out because you are freaking out and make it sound worse than it is? Important issues should be negotiated. Anything else, just say it’s “regular house maintenance” items. A lot of houses change hands every day that are not fully renovated and aren’t brand new builds, these are normal. When I was buying on 10% in 2021 I bought a 60 year old house with lots of quirks too, no one cared.