I want Re-Negotiate the Price After Home Inspection
I hear this on occasion and feel that most buyers are mis-informed, especially on homes that are priced to sell.
Let me speak candidly, as a first response to the home inspection the buyer wants a drastic price reduction. This is not he right way to approach this situation. The key is to be sure to be fair to the seller, not on their side, but fair, and the truth be told- the Home Inspection is not a tool for re-negotiation. It stymies me that buyers think this way even before they ask he seller to repair!
When a buyer submits an offer on a home there are usually a few contingencies. One of those contingencies is a home inspection. I always encourage and urge buyers to have the home inspected by a licensed home inspector a home prior to closing.
The inspector's job is to uncover all safety, mechanical and structural issues
Buyers have a few choices when and if issues arise from a home inspection, the buyer can and should ask the seller to remedy and repair the items that are of concern, OR the buyer can accept the results of the home inspection and proceed with the transaction or the buyer can just walk away from the transaction.
On occasion, buyers have been mis-lead into believing that they use the home inspection to reduce the price. I don't know where this idea came from, and it's the best way to make the seller angry.
The right way and most customary is to give the seller the opportunity to do the repairs. Generally speaking, it's the buyers responsibility to do their own due diligence in obtaining estimates and opinions of other professionals as well.
For example if the home inspection reveals the roof may be at the end of it's life, the buyer should find a licensed professional roofing company or contractor to inspect it in more detail.
After the buyer obtains professional analysis on the scope of the work for each item, the buyers agent can present the list on paper to the seller's agent.
Most sellers are reasonable when it comes to major issues, but...
Please know- The Seller doesn't HAVE TO do anything. (another misconception).
If the seller refuses to do the work, you can choose to walk away, take the house as is or..as a last resort, ask for a price concession equal to the dollar amount of all of the repairs.
In negotiation, it is very important to have all of your "ducks in a row" so to speak. If the house you want to buy is priced to sell and your requests for repairs from the home inspection items appear unreasonable to the seller, the seller knows they can easily find another buyer.
If you really like the house do all that you can to be reasonable when it comes to home inspection items or risk losing the house and perhaps waiting a very long time to score another home that represents the same value.
In a real estate transaction, when we create win-win solutions everyone is happy!
PS: I might also add- I am a strong negotiator when you decide to submit an offer on the home of your dreams. Let me negotiate your best price PRIOR to home inspection.
Thank you for reading my blog.