WELCOME TO OUR HOME INSPECTION BLOG!
Today our post will cover the home buying process, the home inspection and what to do once it is complete.
The Home Inspection is complete. Now what?
Whether you are buying a home or selling a home, you’ll have to negotiate. The majority of people believe the real estate “deal” is negotiated at closing. However, the negotiation process and ultimately the closing of the deal, start well before the home inspection. Most issues don’t come up until after the home inspection. Once found, those issues tend to result in another round of negotiations to allow for repairs.
Here are several buyer tips for negotiating repairs after the home inspection is complete.
Ask for a repair allowance for the work to be done…
The sellers are usually ready to move on from this chapter in their life. If the property is moving toward closing, they have most likely already started packing and planning their move. The last thing they want to do is make repairs or spend time fixing their old home. As a result, they may not approach the issues found during the home inspection, with the same conscientiousness that you, as the new owner, would; selecting materials, scheduling contractors, etc. If you take a cash credit at close of escrow, that’s not something you would have to deal with. You can use that money awarded to you through negotiation to have the repairs done yourself. Also, if you get the credit, there will be less back-and-forth with the seller. Then you can ensure the work is being completed correctly and on time and the seller can move on.
Think ‘long-term’ while negotiating…
If you know you plan to make specific renovations to the home, then a little bit of damaged flooring or a leaky faucet, shouldn’t be that big a deal. These things will get fixed during your future renovation. However, the repairs are still up for negotiation. One of the things you can do to ensure you get the money necessary to make the repairs is to take your home inspection report to your contractor (of choice), for a bid or quote. Your home inspection report should have pics and comments that can be used. Asking the seller for a repair allowance for some of these type issues can be used for future renovations or to offset some of your closing costs.
Keep your plans to yourself…
If the sellers have a good listing agent, they will walk the home inspection with you. Expressing that you are ok with certain issues, based on your future plans to renovate, could come back to haunt you in further discussions or negotiations. If they sense you have real concerns with the repairs needed and listed in the home inspection report, they’ll be more willing to relay that information to the seller. Conversely, if you spend a bunch of time measuring things and going over renovation ideas, you could potentially lose your power to negotiate. If you mention you’re planning a gut renovation of the kitchen, they’re going to be less likely to offer you a credit for repairs to some of the kitchen cabinets or damaged flooring.
A word of caution…
You should never complete the original contract assuming that you will be able negotiate the price down, after the home inspection is complete. It can come back to hurt you, especially in a competitive market. If the home inspection report comes back with little to no issues to be repaired, there’s nothing to really negotiate. If you attempt to negotiate anyway, you risk pushing the sellers to move on to a new buyer. You need to go into escrow with your eyes wide open. A real estate transaction is never a done deal until the money changes hands. Stay aware of everything going on or negotiated. Otherwise, you may risk losing out on further viable negotiation opportunities, which could lead to buyer’s remorse.
