Unfortunately, the news after a home inspection isn’t always good news. As much as you hoped the inspection wouldn’t turn up anything, it’s not out of the ordinary for there to be major or minor items needing attention. Getting the seller to negotiate in good faith about having repairs made will be your next step.
What Are Your Options?
Any time you’re purchasing a home, it’s quite likely that there will be discoveries made that require attention before the sale is completed. You may or may not deem them to be major enough to warrant attention by the seller, or they may be significant enough that you aren’t comfortable proceeding with the sale until they’re addressed. Fortunately, you have options. They include:
- Asking the seller to make the repairs themselves
- Asking for credits toward your closing costs and handling the repairs yourself
- Asking the seller to reduce the sales price considering the repairs needed
- Backing out of the transaction if you have an “inspection contingency” written into your contract
- Moving forward with the sale and completing the purchase
Which of these you select and the seller agrees upon will be largely determined by a discussion involving both parties, and often the realtors involved in the sale/purchase. Make no mistake, it’s a negotiation. How can you reach a satisfactory agreement? It’s most often accomplished when open and honest dialogue occurs between all of the parties.
What To Consider As You Negotiate
After a home inspection comes back with repairs you’d like made, it’s time to consider your options and begin the negotiating the repairs. Here are five recommendations for you to think about when you are working toward a fair solution.
1.) Decide what you want repaired.
There will very likely be items on the inspector’s list that you can live with, and some that you can’t. A significant crack in the foundation is something that you probably want attended to before you move into the home, while some cracks in a wall from the house settling will likely be something you’ll attend to yourself. You’ll have to decide what’s major enough to ask for repairs before you take possession.
2.) Determine the cost of the repairs.
Using our foundation example, once you determine you’d like it fixed you’ll need to determine how much it is going to cost to correct the deficiency. For major items you’ll want to call in a general contractor, plumber or electrician to quote prices on making the repairs. You should be sure you see the written quote before agreeing upon a price.
3.) Understand the seller’s not obligated to make the repairs.
Even though the inspector approaches you with a list of items they’ve discovered needing attention, the seller is under no obligation to fix anything. Depending upon the local real estate market, they may be willing to let you walk and then negotiate with another buyer. You’ll need to decide how much you want the home and what you’re willing to live with.
4.) Do you want a credit or the repairs made?
If the discussions with the seller have gone well, you may be faced with the decision of having a credit applied toward your closing costs or having the repairs made by the seller. It is often recommended that you take the credit and supervise the repairs being made since the seller is not going to have the same interest level you will after the sale is completed.
5.) Enter negotiations with a good frame of mind.
It’s quite possible that the seller wasn’t aware of the extent of major problems with their home and weren’t trying to hide anything from you. Negotiations will proceed much more smoothly if you keep this thought in mind as you discuss having any problem items taken care of. It’s better to give the seller the benefit of the doubt as you discuss solutions.
After A Home Inspection Repair Negotiation Is A Success
Once you’ve reached a win-win solution with the buyer on the repairs needed, you can move forward with the sale and soon take possession of your new home. Lucent Property Inspections is your reputable home inspector in Peoria, Bloomington, East Peoria, Normal, Hudson, Dunlap, Morton, Washington, Goodfield, Roanoke and beyond.
Contact Lucent Property Inspections today to discuss what your inspection needs are and schedule a time to have your inspection completed.