Just goes to show you how every area has it's customary practices and not everyone has a set standard.
Repairs can no longer be adjusted on the HUD as it sends a red flag up to the Lender- they will question it and possibly ask for things to be done. It's always best to- 1) have buyers agent representation, 2) have a home inspection and 3) get a pre-approval from your lender, but what until the inspection is done to go forward.
And as for escrows- title cos. cannot hold escrows for repairs. It is for title issues only.