How to Negotiate Price or Repairs After an Inspection
Experienced home buyer know that having a professional home inspection by an experienced professional who has spent decades writing detailed reports is an absolute must. Without detailed documentation of the problems within the home one runs the risk of getting stuck with unexpected repair and maintenance costs that can blow budgets through the roof. When you do invest in a quality home inspection you arm yourself with ammunition to push down the price or gain concessions from the seller.
So what should you do if the results of your inspection aren’t quite as positive as you may have hoped? Read on for our guide to negotiating like a pro.
Push for inspection credits over repairs
Rather than have the property owners repair any current issues, it is sometimes to your advantage to push for inspection credits that reduce the final sale price. Essentially, total up repair costs for the material defects then request a reduction of the sales price. This will give you the flexibility to choose your own providers, complete repairs at your own pace.
Keep your cards close to your chest
For example, if you love a property so much that you’re really not worried about the fact that you’ll need to replace the HVAC system, don’t let this on. Instead, the genuine concern over the associated costs. You can try to request a credit from the seller by encouraging them to drop the price.
Make a list
Another way to maximize savings is to make a complete list of all the repairs that will need to be done before the property is bought up to par. This will give you and the sellers a clear overview of exactly what issues need to be addressed, and how much it’s going to cost. Home buyers are not likely to get any concessions from the seller for upgrades however it is realistic to get some credit to cure the defects that are found during the home inspection.
Don’t expect sellers to shave off a significant amount of cash from the word go. When you enter into the repairs and maintenance negotiation process it pays to be flexible and fair. Be open minded and proactive in your dealings, as opposed to pushy and aggressive.
Ask seller to pay closing costs
From a psychological perspective reducing the sales price can often be hard for sellers to swallow. If you encounter this, try asking the seller to contribute towards your closing costs (if legal and allowable). It’s essentially the same as a price reduction, just packaged differently. Or share in the cost of repairs and replacements.
Ordering a professional home inspection report that can help you save you money and aggravation.