A thorough home inspection is one of the most important steps in any home buying process. It goes without saying that the inspector will find something to repair/complain, even if it’s a very minor thing. After all, the buyer is paying the inspector to find faults. Any deficiencies under such circumstances are noted on the report and the buyer or the seller should negotiate repairs after the home inspection.
Once the repair list is submitted to the seller, the deal opens for another set of negotiations. Hence, here are some very straightforward, commonsense approaches to tackle this part of the transaction.
The moment the seller as well as the buyer knows the list of repairs to be done in the house, they should be willing to answer certain questions to themselves before starting up a negotiation.
The most critical questions are:
• Are the repair requests by the buyer or the seller reasonable? • Are you willing to do part or all of repairs yourself? • How much do you want to spend in repairs and what do you think the other party will settle for without repair? • Can you ignore any repair?
Repairing the whole house after a house inspection can turn out to be a very expensive affair, so, as a seller; you may be able to negotiate a cash settlement that will turn out to be less expensive than the actual repair. A seller can offer some money to the buyer, so that they can decide what to repair, instead of taking an already repaired home. This can be a very lucrative offer for the buyer if handled in a diplomatic way.
For instance, a seller should always stay away from a repair that leads to subjective interpretation. Let’s say, the kitchen counter needs some serious repair and replacement. Once the seller does the repair, what if the buyer thinks that the new replacement does not match the original? Who wants that kind of a headache? So, it’s always best to offer some money to the buyer so that he can take care of such problems by themselves and avoid that situation entirely.
Ask The Seller To Pay For The Closing Costs:
Sometimes, an alternative to requesting a price reduction is to ask the seller to pay a part or all of your closing costs. You might think, “What difference does it make if the buyer pays $4000 of your closing costs vs. lowering the your purchase price by $4000?” Nothing.., but sometimes sellers are psychologically sensitive about the selling price and won’t agree to change it, while it may be easier for them to make concessions and reductions in other areas. Hence, it becomes a win-win situation for both parties.
It’s not necessary to take up BIG repairs
Lets say, you have a serious repair that you do not want to deal with. Of course, it’s not a issue that might pose a health concern or hazardous for occupants, but it is a repair that you do not want to put your effort and time in, like dealing with an old swimming pool and facing issues with landscape and ground problems.
This is where you have to play the number game with your buyers. All you need to do is to offer several other repairs inside the house. This shows fairness in the game to buyers. List every item that you are planning to repair, illustrate your commitment and the sincerity and commitment you are showing towards repairing every other item apart from the one you want to stay away from.
However, if your buyers are adamant that they want the repair to be done, ask your buyers if it is acceptable if you put all your effort into repairing that one issue and leave the rest? Moreover, rationally thinking, taking in charge of all the other small repairs in the house equals the effort put into the big one.
Do Not Back Off From A BIG Problem
A home inspection can expose a serious problem that you never knew existed. Do not back off from repairing such a problem or negotiate your price, because the deal could go away. If it does, you have a bigger problem. Now you are legally obligated to disclose this issue to your future occupants, which will predictably turn away potential buyers. Until you fix the issue, the problem remains and will come up again during the next home inspection. The best course of action is to get it fixed and sell your house faster.
It’s always advised to call a local contractor and get an estimate of how much the repairs will cost. If you think the cost for repairs is too much, you can always find another contractor and compare estimates.
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