Most homeowners to ensure their money goes into purchasing the perfect property tend to hire home inspectors. A home inspector is a licensed professional who inspects the main areas of the house for shortcomings and defects. Once the inspection is done, the home inspector presents a list of negatives and positives of the house.
Depending on the intensity of the defects, the price may or may not be negotiated. A home inspection allows the buyer to negotiate repairs once a thorough checkup of the property is done. However, this stage is a bit tricky. So let’s discuss how you can negotiate repairs after your home inspection.
Home Inspection Repair Negotiations Tips
Review the Report with Your Real Estate Agent
The first thing you should do after a home inspection is share the report with your real estate agent. A good real estate agent will go through the report and discuss in detail the defects of the house. Since real estate agents deal with multiple properties at a time, they are well-versed with defects and how expensive they can sometimes be.
From the outside, a flaw might look easy and cheap to repair but you never know the real story behind it. Therefore, only the real estate agent can make recommendations regarding the repairs or concessions you should ask for.
Additionally, a real estate agent should provide realistic recommendations pertaining to concessions or repairs. Asking for unrealistic concessions is not only unprofessional but might also put off the seller.
Prioritize Repairs By Cost and Severity
The home inspection report will include both small and large defects. Instead, of focusing on the small flaws, you should prioritize large defects such as leakages or cracked pipes, etc. You should make a list of “dealbreakers” that would make you walk away if the seller is not willing to fix or compensate for them. The reason being that large defects are usually neither easy nor easy on the pocket to fix.
In most cases, you have to take apart the entire system and rebuild it again. Therefore, you should prioritize issues based on cost and severity. If the issue is both expensive and time-consuming, it should be on the top of your priority list.
Don’t Sweat the Small Stuff
When you are out in the market looking for an ideal property, keep in mind that there is no such thing as “ideal” especially when it comes to older properties. Irrespective of how well a property is maintained, there are still going to be minor flaws. The reason is there are many external factors affecting the life and condition of the house. If the property is located in an area that is prone to extreme weather conditions, it might have a few dents or chips in the walls.
Therefore, when it comes to making a deal, you should let these issues slide. Sellers will normally refuse to address such issues that are easily fixable. Unless there is something that violates or raises safety concerns, you should move towards closing the deal. Remember you can always check for govt grant for home repair within your state. This could save you from your problems.
Request Concessions For Major Items
Apart from minor defects in a property, you should be seriously concerned about major issues such as sagging foundation, faulty HVAC system, damaged roof, etc. The reason is that not only are these issues expensive to fix but pose a safety concern as well. A property with a sagging foundation or damaged roof should either be fixed by the seller before selling the property or the buyer should be compensated for it. You can ask the seller to complete the repairs as a condition to close the deal. As a result, chances are that the seller will reduce the sale price instead.
Get Quotes From Contractors
Now that you have successfully negotiated the repairs and selling price, it is time that you start getting quotes from contractors. Now, this is where you need to be patient and thorough. You will come across many contractors out there who will be willing to offer their services at affordable rates. However, that should not be your concern. Infact, you should be concerned about hiring a licensed professional for the job.
The reason is that licensed contractors are aware of the building codes preventing you from running into a legal problem down the road. If for some reason, the seller is not willing to believe or agree to the repairs, you can share the quotations directly with the seller.
Take the Market Into Consideration
Taking the market into consideration is one of the most important factors in both cases of selling or buying a house. If you are in a seller’s market, you cannot ask too much for your property considering the shortcomings and defects. Look for other properties in the area with more or less the same defects and see how much they are listed for.
However, if you are in a buyer’s market, you should justify the repairs or concession and avoid putting in demands that the seller refuses straightaway. If the seller has received multiple offers already, he/she will not spend much time tending to your demands.
In most cases, a seller will be willing to negotiate the repairs or offer a concession as long as you justify the shortcomings. After all, both you and the seller are looking to close down the deal. Before putting in any demands, put yourself in the shoes of the seller. This will help you make reasonable demands or negotiations. Additionally, your real estate agent should also advise you on what might be considered too much to ask for.
Negotiating the repairs after a home inspection can be a daunting task. However, know that the seller is as willing to close the deal as you are. Therefore, you need to be reasonable and take your time. View the negotiations from the seller’s perspective and make flexible or reasonable requests. If the seller refuses, you should look for other options.