Your offer has just been accepted and the only item the seller has countered with is to credit the buyer $3000 for termite work to be completed by Client Bob after close of escrow. Is it wise for you and Bob to sign the counteroffer?
Any wording in the purchase contract that affects the property condition or value will be subject to the underwriter’s highest level of scrutiny – so why put your deal in that position if you can avoid it? Even for as little as $2000, I have had transactions derailed because sellers may sometimes flatly refuse to fix any property or termite damage.
In cases involving HOA’s – a letter stating that certain problems will get fixed often helps – but is by no means guaranteed. Some lenders will not accept HOA letters because of the reputation some HOA’s have at being notoriously slow at addressing maintenance and repair issues.
What you can do…
Instead of explicitly stating what needs to be done – it is often more prudent to be vague (contrary to the advice to almost every contracts attorney) about credits going to the buyer. Credits for closing costs are always acceptable if the amount is not too large (under 6% of loan amount and no questions are asked) and does not exceed actual closing costs. If the seller is not agreeable to crediting the money outside of escrow, you can always ask your friendly mortgage broker to credit their costs outside of escrow (for no-cost loans). The reason for doing this is to avoid a situation where the value of the property is put into question.