When buying a home, the down payment and the mortgage aren’t the only costs that you have to worry about. Without further ado, let’s dive into what exactly happens during a home inspection so you can be prepared when you get the report. Here are your options after a home inspection reveals problems: 1  Ask the seller to make the repairs themselves Ask for credits toward your closing costs Ask the seller to reduce the sales price to make up for the repairs Janice – in most real estate contracts home inspections are negotiated within a short time after the home inspection is completed. Doing this helps you truly evaluate the deal in front of you. Then, the sale moves forward. When they’re willing to take ownership, it’s easier for everyone. Do Most Sellers Make Repairs After a Home Inspection?. If you find yourself in a seller’s market, the seller may not give an inch on any of your requests for repairs to be made. Draft a request and send it to the seller, along with a copy of your home inspection report. Broken appliances, electrical system issues, heating and cooling system problems are all areas for negotiation. Often, small items can come up in the report. The inspection is there to protect you from unwanted surprises in your new home—and if any surprises do turn up, you can negotiate a lower price and use some of your cash savings to fix up the house. With his back against the wall, Apple CEO Tim Cook pulled out the trump card in negotiation and conflict resolution: the apology. Consumers were upset over the lousy one year warranty and expensive repair costs when something broke. Negotiating after a home inspection takes preparation and a level head if you want to come out on top. Sometimes huge issues turn up. If you seem unhappy with the inspection, they’ll let the seller know. Remember, your goal is to get the house you. Your email address will not be published. A home that’s just a few years old and had just one owner might make it clear that issues are the fault of the owner. When you ask for repairs, you’re going to be the one who is going to have to live with the results, not them. However, the closing costs and fees can come off the top of the sale price. The lesson here is that apologies work when you use them at the right time. Assigning a dollar amount to those things can make assessing the overall deal much easier. If you really love the bathroom the way it is, it might be easy enough to patch and paint issues on your own. The first two items are cheap and easy fixes, the third is expensive. Offer a home warranty. When walking through an inspection with an experienced local real estate agent, buyers can build a case to negotiate a lower price on their home. Issues typically arise after the home inspection, and those issues tend to result in another round of negotiations for credits or fixes. When you factor in the repairs you are going to have to make on day 1, it’s not worth it. wanted because you didn’t give enough weight to the soft factors. When you negotiate repairs after a home inspection your goal is to get any major problems taken care of—particularly things that might have had an impact on your decision to purchase the home or the offer that you made. Not in marriage, business, or home sales. It may be a big repair, but that doesn’t mean you have to automatically walk from the deal. That almost never works. Their focus is on negotiation within a marriage, but the lessons can be applied to your negotiation after the home inspection. Celebrities, state-run news agencies and the public were coming down hard on the company. Negotiating after a home inspection takes preparation and a level head if you want to come out on top. Your inspector can usually tell you why the issue might have arisen. works. Celebrities, state-run news agencies and the public were coming down hard on the company. There is a saying in negotiation, “trading pennies for dollars.”  If you come to the seller with a laundry list of items–some big and some small, you are giving the seller the opportunity to trade pennies for dollars. Here are three buyer tips for negotiating repairs after a home inspection. It is not however an opportunity to make a wish list of requests that the seller has to meet. Simply put, BATNA stands for “best alternative to a negotiated agreement.”  This term is thrown around a lot in negotiation theory, but it can be hard to nail down exactly what your alternatives really are. Water is a house’s worst enemy and you better believe that water issues will come up on an inspector’s report. Remember that every deal is not a deal, it is a person. If you anticipate tens of thousands of dollars in repairs, this isn’t the best deal. For example, when renegotiating price, state the new dollar amount for the home or a dollar … Required fields are marked *. Perceptions start before anyone makes the first move–perception is the arena in which the game is played. They are:1) Appreciation. If you find yourself in a seller’s market, the seller may not give an inch on any of your requests for repairs to be made. While cosmetic issues can be a real turnoff when you’re buying a house, you need to take a step back and think about the big picture. Sometimes you have smaller items, or areas of grey where you will have to make a choice to either walk, negotiate with the seller, or accept the problem and continue with the deal. As the seller is not present for the inspection, you’ll have a few tasks that must be completed in preparation for the home inspection. Just leave those small items off the list. Negotiating after a home inspection. You are responsible for hiring the home inspector and should ask what items will be included in the home inspection. The sellers are on their way out. Apple CEO Tim Cook pulled out the trump card in negotiation, Sure, you want to take into account raw cost of the house, and the cost for any potential repairs–but don’t forget about soft factors that make the house more or less valuable to. This can be a good way to signal that you’re looking to negotiate or that if they intend to sell to you, they’re going to have to play ball. A lot of sellers out there may not have the cash on hand to make a repair prior to closing. For example, this house could be in the perfect location for work, saving you 20 minutes per day on your commute. You might find that a house has a particular charm to you. Whatever is agreed upon with the parties is put into the contract. You just bought a house! With the help of an agent who can negotiate on your behalf, buyers are able to avoid taking on risks by giving a counter offer after a home inspection. Inspectors will also check the inside of the home, underneath sinks, bathrooms–just about every square inch of a home. 1. Once the counter offer is made, a buyer can reject it and walk away, accept it or make another counter offer. Even if you love the house, if you don’t have enough cash available to make the purchase with a down payment. You have to. Maybe you like the fireplace. It is a person with a range of emotions and concerns. This is a situation where you can compromise and come out with the home you wanted and no expensive repairs to go along with it. Read This First (2020 Update), Read This BEFORE You Pay For a Flat Fee MLS Service. Closing date, to specify the timeline from the purchase contract through the final signatures: For example, if the original offer specified a closing date 45 days from acceptance and the seller needs more time to vacate the home, they may present a counter proposing a longer escrow period to allow them the time to make their move. Share you knowledge and insights in the comments section! A real estate agent is the best resource to help you determine not only if a counter offer is the best choice, but also what changes you should make to the original offer. This is a win for you and for them, as it keeps them from having to take money out of their pocket now. Unlike taking a math quiz or getting your car inspected, a home doesn’t “fail” an inspection in a black and white way. You were hoping for a clean bill of health, but the home inspector came back with bad news. Sometimes huge issues turn up. Remember, your goal is to get the house you want, not “win” on every line item. 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