Home Inspection and Negotiation

A home inspection is something that needs to be done to make sure there are no hidden defects that would affect the value of the house.  Therefore, negotiating after a home inspection takes preparation if you want to come out on top. 

Searching for a new home? What are the things you need to consider? What are your options?

Your offer on the home should be based on what you have seen outside of the home inspection. Once the inspection is completed, the best policy is to address the issues of repairs because it is a contingency. Moreover, you are not bound to the contract if you and the seller can’t come to an agreement on repairs.

Also Read: How to avoid costly buyer mistakes before you purchase your next home in South Florida.

The home inspection is usually done 7 up to 15 days after your offer has been ratified. The purpose of a home inspection is to provide you with the overall condition of the property. In short, you will receive a laundry list of items that aren’t perfect on the home.

What are the common problem areas to look for during Home Inspection?

• Mechanical
• Structural
• HVAC
• Safety hazards
• Roof etc. 
• AC
• Electrical
• Plumbing leaks
• Foundation

Determine what repairs you want to have completed after the Home Inspection. 

A lot of the things are minor and just a handyman can fix them. Repairs that you really might be considering giving a pass are minor landscaping and issues with just paint or flooring. Basically, things that you can do yourself are the little things you really don’t have to worry about. 

The Three Types of Buyers When Negotiating Repairs after Home Inspection

1. A Buyer who see minor issues and decides to repair them on their own without negotiation.
2. Buyers who want the seller to repair items that could be a safety hazard.
3. The Buyers who want to repair everything.

Unless the home is brand new construction, asking the seller to make every single repair is not reasonable. For buyers that insist on having a near-perfect older home, we would suggest buying new construction.

Sometimes you find may a very proactive seller that ordered a pre-listing home inspection. If the seller fixed any problems ahead of time, there may not be much to add to your list. 

Also Read: 10 Secrets Every New South Florida Home Buyer Should Know

Forward list of repairs to the seller

Once the home inspection is complete, you and your realtor would have to prepare a list of repairs to give to the seller. 

Don’t forget that you’re under a time restraint. 

Whatever time-frame that you and the seller agreed on, not only do you have to get the inspection completed but also anything that you want the seller to do for you you have to have that during that time frame. You have to forward your list of repairs you want the seller to do for you during that time frame. However, depending on what contract you use, the time frame can be different.

What to consider during negotiations after the Home Inspection?

– Have the realtor write the info addendum that all work should be completed by a professional.

– Get points ahead of time if you want to ask for credit

– Ask the seller to make repairs or credit. Buyers want the least amount to do after moving in while the sellers want to make the most money. 

How buyers can control negotiation?

A successful negotiation occurs when all parties get something they want or maybe in the best interests of everyone. You can get a credit at closing or have the sellers make the repairs for big-ticket items. But if you’re afraid of appraisal, consider getting a cash credit that goes towards either the sales price or closing costs. 

• Give a copy of the summary page of the home inspection so the seller can verify the items.
• Make sure that the negotiations are a win-win situation and not one-sided. 
• Come to an agreement if possible or walk away.
• Figure out what is fair on both ends.  
• Make sure that the seller is okay with the things you offer. 

This FREE report, outlines the psychology of how a seller sets their asking price and help ensure you’re able to successfully slash thousands of dollars off the price of the home you want.

What are the choices as a seller?

• The seller can agree to make all repairs 
• Can negotiate on the repair list. The seller can agree to make some of the repairs but not all.
• The seller can agree to make no repairs. If the sellers have back up offered, they can just walk away.
• The seller can agree to give credit instead of making the repairs to a buyer.

The reason why the home inspection is your biggest leverage is that if you don’t agree with the seller concerning the repair lists you can merely walk away from the transaction but try to negotiate. If you walk away from buying a home because the seller didn’t agree to replace the electrical outlet, for example, you probably didn’t want to buy that home anyways.

So make sure that when you are putting in your purchase price you’re considering the things that you need to do and the cost to do those things after purchasing the home. Minor things are not usually negotiated too much. In other words, you should avoid asking for minor repairs if you want to make it through to closing

No home is perfect unless you buy it brand new and under construction.

Home Inspectors Job

A home inspection is handled by professionals who evaluate the condition of a home and report on necessary repairs and issues that may need to be addressed in the near future. Often, small items can come up in the report and sometimes huge issues turn up.

The inspector’s job is to create a laundry list of items that need to repair or fix in the home. Some of it might be screwing the door tighter or could be loosening a bolt or other different things that don’t cost anything. If you’re coming close to the appraised value of the home when you put in the offer, remember, you might not want that credit and you might want those things to be fixed.

CONCLUSION

HOME INSPECTION AS NEGOTIATING TOOL

A home inspection report offers an opportunity to ask/request for repairs, price reduction or credit from the home seller. Experienced and professional real estate agents at The Stampini Team will work closely with you to understand what requests can and should be made to negotiate a better deal.  It’s really important that you work with the seller and you work with the negotiations. Focus on the big things that could be wrong with the home, not the minor ones that you can do by yourself.

Want to learn more? Then watch this video to learn the more how to win negotiation after a home inspection.

When shopping for your new or next South Florida home, you’ll discover that most homes on the market are resales. Yet, one out of four homebuyers purchases a new home. Both new homes and resales offer advantages. Read This BEFORE You Visit Your First Model Home!

Whether you are South Florida home buyer or seller, working with a dynamic, knowledgeable, and ethical professional is essential. Contact us now to make sure you get the best price and the best service throughout the real estate process.

Looking for your perfect real estate match? Finding your dream agent is easy with The Stampini Team. Our team consists of top South Florida and Boca Raton real estate agents to help you with any of your real estate needs! Call us today at 561-500-5747. Or feel free to share our contact information with anyone you know that needs expert help in buying or selling their home in the South Florida area.

****************************************************************

YOUR HOME SOLD GUARANTEED OR WE’LL BUY IT!*

To discuss the details of this incredible option, call directly at 561-500-5747

It’s simple, Seller and The Stampini Team must agree on price and time of possession.

**conditions apply. CALL FOR DETAILS**