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There’s nothing as exciting as finding the perfect home. Finding the perfect house can be exciting.
However, excitement can quickly turn to despair if the inspection report reveals that there are needed repairs. Don’t worry, you can negotiate. This blog will help you better understand the process, and give you the opportunity to ask questions to your agent.
The inspection process
Home inspections play an important part in the home-buying process. These inspections can identify potential problems and help you resolve them quickly and efficiently so that you can concentrate on your move into your new home. The majority of inspections are focused on
- HVAC system
- Roof and attic
Speak to your agent
Once you receive the report from your home inspector, it is a good idea to take the time to go over it with your agent. You can trust them to help you determine the best repairs and concessions for you.
After reviewing the report, it is possible to help prioritize repairs based on cost and severity. You should prioritize serious issues such as foundation damage or wiring problems over cosmetic or less costly repairs. If the seller fails to address any issues, you should note them.
Request repairs or concessions
Once your list is complete, you can negotiate with the seller to resolve these issues. Ask them to make the repairs part of the closing. You could be offered a credit or concession by the seller. You will need to agree to a price for the repairs. The seller may adjust the home’s price or pay an equivalent amount.
Concessions or credit may be preferred by many sellers as it adds another task to a already busy moving schedule. You also have no control over repairs and they might not meet your expectations.
If you agree to a concession or credit, make sure you get quotes from a general contractor on how much the repairs will cost—this will help you have a ballpark idea of how much you will need to make these repairs. These can be shared with the seller to justify the credit or concession amount.
Before you start negotiating, ensure that you have read the following:
- If a home is listed as-is, it’s unlikely the seller will want to make any repairs or pay to have them fixed. If a home inspection reveals a serious problem, the seller can request a credit or a reduction to fix it.
- If you’re buying a home in a seller’s market, be mindful of how many repairs or concessions you request. The seller does not have to make repairs.
Know when to walk away
If you feel like you are at an impasse with the seller and they won’t listen to your requests for repairs, it might be time to move on to a new home. If the results of your home inspection are not satisfactory or you can’t reach an agreement with the seller, the home inspection contingency clause allows you to rescind the contract without forfeiting your earnest money deposit.
A better understanding of the negotiation process will help you get back on track and move into your dream house.