The $30,000 Roof Dilemma: Price Reduction vs. Seller Credit in Springville, Utah
You finally found it—the perfect home in Springville. It’s got the mountain views, the right square footage, and a price tag of $550,000. But then the inspection report comes back: the roof is at the end of its life. The estimate to replace it? A cool $30,000.
Now you and your agent are at a crossroads. Do you ask for a price reduction or a seller credit? In a 2026 market where Springville home values are stabilizing and interest rates are still a primary concern, the "right" choice depends entirely on your bank account and your long-term goals.
Option 1: The Price Reduction ($520,000 Purchase Price)
A price reduction simply lowers the amount you are paying for the home.
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How it works: Instead of $550,000, you buy the home for $520,000.
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The Pro: Your monthly mortgage payment will be lower because your loan amount is smaller. You also save a tiny bit on property taxes and homeowners insurance premiums over time.
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The Con: This does nothing to help you pay for the roof today. You still need to come up with $30,000 in cash to pay the roofing contractor after you move in.
Option 2: The Seller Credit ($30,000 Toward Closing)
A seller credit is when the seller gives you a portion of their proceeds at the closing table to cover your costs.
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How it works: You keep the price at $550,000, but the seller "gives" you $30,000 at closing.
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The Pro: This is cash in your pocket (indirectly). By using that $30,000 to cover your closing costs and prepaid items, you keep your own cash in the bank—cash you can then use to write a check to the roofer the day you get the keys.
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The Con: You are financing that $30,000 over 30 years. Your monthly payment will be higher than if you had taken the price reduction.
Which One Should You Choose?
In the current Springville market, here is the rule of thumb:
| If you... | Choose This... | Why? |
| Are cash-strapped | Seller Credit | You need to keep your liquid savings for the actual repair. |
| Have plenty of savings | Price Reduction | You save more money over the 30-year life of the loan. |
| Want a lower payment | Price Reduction | A $30k drop can shave ~$180–$220 off your monthly bill. |
| Want to "Buy Down" your rate | Seller Credit | You can use the credit to pay for "points" to lower your interest rate. |
⚠️ A Note on Lender Limits: Most lenders (FHA, VA, and Conventional) have a cap on how much a seller can credit a buyer (usually 3% to 6% of the purchase price). On a $550,000 home, a 6% credit is $33,000. You are right at the edge! Always check with your lender to ensure they will allow a full $30,000 credit.
The Springville Factor
In 2026, Utah County is seeing a more balanced market. Sellers are more willing to negotiate than they were a few years ago. If the roof is truly shot, many local lenders may actually require it to be fixed before they will fund the loan. In that case, you might even negotiate for the seller to replace the roof before closing using a "pay-at-close" roofing contractor.
Are you trying to decide which path is best for your specific loan type?
I can help you calculate exactly how much each option would change your monthly mortgage payment based on today's Springville interest rates. Would you like me to run those numbers for you?
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