Buying your first home can be overwhelming and chaotic. After you’ve made an offer on the house, a home inspection is usually performed.
What happens after?
If problems were detected in the report from the inspector, most buyers will want to have some repairs completed or adjustments made before completing the sale.
Negotiations between buyers and sellers over repairs must be handled carefully in order for everyone to walk away feeling happy with their end of the deal.
In this blog post, I'll share tips on negotiating repairs after a home inspection so that you get what you need out of any repairs agreement – without mishaps along the way!
What Is a Home Inspection?
A home inspection is a comprehensive examination of the overall condition of a property, which includes its structural components, electrical and plumbing systems, and any other potential issues. The main goal of a home inspection is to evaluate the current condition of the house and to identify any significant issues that may be hiding behind walls, ceilings, or under the floor that may not be visible during a standard showing or walkthrough. The inspection report helps the homebuyer decide if the property is worth the investment or if they need to negotiate repairs with the seller.
Things To Know About Your Home Inspection
There are a few important things to keep in mind to ensure you make the most of this crucial step.
First and foremost, it's important to know that a home inspector is not permitted to give pricing on recommended repairs.
Secondly, while inspectors can provide insight into what they can see during the inspection, they cannot see through walls or provide opinions on inaccessible areas.
Additionally, it's important to remember that inspectors will not advise you on whether or not to ask the sellers to make repairs or if you should buy the house.
Ultimately, an inspection provides an overview of a home's condition, but it is not a pass-or-fail process. It's vital to keep these things in mind and ask questions to ensure that you fully understand the information provided during the inspection.
Categorizing Repairs
When it comes to negotiating home repairs, it can be easy to feel overwhelmed.
However, it's important to prioritize certain issues based on their severity.
- Anything that presents a serious safety issue. This could include anything from faulty wiring to water leaks that can cause electrical hazards.
- Issues that present serious health issues, such as mold or asbestos. These issues can be dangerous to your health and should be addressed as soon as possible.
- Issues that affect the structural integrity of your home can lead to more serious and costly damage if left unchecked.
- Systems that are not working properly, such as the HVAC or plumbing.
Factors to Consider After A Home Inspection Before Negotiating Repairs
When it comes to negotiating repairs after a home inspection, there are several factors that must be considered beyond just the cost of the repair.
- The real estate market. Is it a buyer's or seller's market?
- The price point of the house must be considered. If it is at the higher end of the market, buyers may expect more repairs to be made.
- How the house is presented. A well-maintained property may give the seller more leverage in negotiations.
Ultimately, a successful negotiation will require careful consideration of all these factors and more.
How to Present Repairs to the Seller
When it comes to presenting repair requests to sellers, there are a variety of options to consider.
- Seller to make repairs prior to closing. This can ensure that any necessary repairs are completed before you move in and save you from having to make the repairs yourself.
- Ask for a price reduction on the home to cover the cost of repairs. This can be a good choice if you prefer to have control over the repairs and would like to hire your own contractors.
- Request that the funds for necessary repairs are held in escrow after the purchase is complete. This option provides peace of mind that there will be funds available to cover any unforeseen repairs that may arise shortly after moving in.
Whatever option you choose, it's important to carefully consider your priorities and work with your real estate agent to negotiate the best possible outcome.
Important Things to Remember
Presenting repair requests to sellers can be a delicate and important process. It's crucial to remember key things that can help make this process go smoothly.
- Do not use the home inspection to try and renegotiate terms with the seller.
- Compromise in negotiations by offering to take on some of the requested repairs/concessions yourself.
- Be reasonable in your requests and provide explanations for any issues that may be unclear.
- Resist the urge to be guided by your emotions and instead carefully contemplate each option in order to avoid rash choices.
- Avoid being hostile; communicate your point in a factual and succinct manner.
- Educate yourself; complete due diligence and investigate all the possible implications of an issue as well as have a general understanding of how much it might cost to fix.
- Refrain from the notion that you must "win" - instead, strive for a mutually-beneficial compromise in which everyone is content.
- Refrain from being unreasonable and concentrate on the significant items that need to be fixed, not minor inconveniences which require little or no expenditure.
- Stay focused on the home inspection contingency date to safeguard your earnest money deposit. Swiftly submit repair requests upon completion to ensure that your investment is not put at risk.
Above all, remember that both you and the seller want what's best for each other: a house bought or sold. Working together towards a mutually beneficial resolution is key when negotiating home inspection repairs.
