Purchasing a home is a difficult task and a VERY long process. That’s why I always recommend working with a Realtor.
But, in the event your home inspection shows a damaged roof, you may want to negotiate for a new one. And sometimes, you want all the help you can get.
Here are Waypoint’s tips for on how to negotiate after the home inspection.
#1 Your Realtor Is Everything
You do not need just a real estate agent. You need a Realtor. A Realtor is a real estate agent that is a part of the National Association of Realtors. These agents are held to stricter code of ethics compared to just real estate agents.
Moreover, Realtors can guide you along the way with their experience.
Why a Realtor?
Since Realtors are held to higher codes of ethics, you can count on them to have your best interest in mind when negotiating.
When negotiating, experience in negotiating, of course helps! Ensuring the Realtor you are working with is an experienced Realtor will help you make more educated (better) decisions along the way.
Also, they can better understand what you can and cannot ask for when negotiating after the home inspection or the seller’s attitude towards negotiations.
#2 Your Home Inspector Is Everything
Having a skilled home inspector is incredibly vital when negotiating after the home inspection.
The home inspection is like the Bible of everything about the home. So, are you willing to pay for a cheap home inspection? Probably not.
You are basically digging yourself a grave when paying for a cheap inspection.
Don’t believe me? Here are a few reasons why you are hurting yourself by not doing you research into a good home inspector.
- Cheap home inspectors are less experienced = They miss items. Fact.
- A less detailed report = Less negotiating power afterward.
- If they miss things, they may not care about their reputation enough to fix those items.
- I could go on.
I digress… you get the point.
Doing you research into a highly qualified home inspector is key in getting a thorough home inspection report.
A detailed report with many pictures can help convey messages about the home as a whole.
Believe it or not, but issues in the home are connected.
If there is a mold issue in the home, there is a water intrusion issue. If there is a water intrusion issue, there is another issue in the home that has to be addressed. It all comes down to a lack of maintenance on the home.
So, how does this help you?
Showing pictures and conveying the items wrong about the home properly exhibits the issues for the seller and why they may or may not be a big deal.
A bad home inspector simply cannot do this for you.
#3 Understanding The Market
When it comes to negotiations, you need to understand the market.
Is it a seller’s market?
It is a buyer’s market?
For example, if there are many buyers wanting a home right now, then maybe there is someone else waiting in line for the same home you are looking for. If that’s the case, negotiating for little things is probably not a good idea.
On the other hand, if it is a buyer’s market, there are many sellers trying to get rid of their home. Therefore, you can typically make more requests than if you were in a seller’s market.
#4 Asking For Items In Good Faith
When trying to negotiate, it is not always about winning and losing. You should always shoot for a win with both parties.
And that can happen!
Here are some things to keep in mind when asking for items in good faith.
Is the item working and functional?
If it is not working and nonfunctional, then yes, you could negotiate for that. If it is working, however, then you should not expect for the seller to fix it.
Is It Cosmetic?
Cosmetic items are not advised to be negotiated during a real estate transaction since they can be so easily changed.
Did You Know Something Was Broken Going Into The Deal?
If you knew the A/C had issues when making the offer, then, you should not negotiate for a new A/C unit.
On the other hand, if something new comes up you did not know about in the home inspection, then, you could ask for that.
Our Realtor Friend, Nick Parrinello Talks More About Handling Inspection Issues In This Video
By the way, you should really listen to the whole podcast to understand this topic. There’s some great information in there! You can also read the blog portion here.
Generic Tips To Negotiations After The Home Inspection
Now that we got that out of the way, using the above information, use these tips below on your negotiations!
Go Through The Home Inspection Report With Your Realtor
Doing this step will help you decide what you can ask for, what’s in good faith, and what your needs are.
Decide what items are minor, maintenance, or major items.
Typically, home inspectors will have general summary at the end of their report.
Here’s also a list of items generally found in a home inspection
Discuss with your agent what you can and cannot live without.
Of course you will need a working A/C, but if this is something you can afford yourself and you are already a great deal on the home, then maybe pass on this.
Get A Quote For Repairs
Having quotes for the necessary repairs will help you determine what the value of those items are.
This will help you and your agent determine how much those items can affect the value of your purchase.
Would You Prefer Money or Repairs?
Sometimes, completing the repairs yourself will be cheaper. Also, you could hire your own contractor rather than using a seller’s contractor to complete the repairs.
In my personal opinion, I like asking for money off of the purchase price of the home (unless an immediate fix is needed), so I can ensure the repair is done properly.
If a seller makes any repairs, you may want to consider a re-inspection.
Understand The Seller Is Not Obligated To Make Repairs
Understanding this is very critical to keep your emotions in check.
Although, as buyers, we are led to believe sellers will fix items, it is not always the case.
Understand Sometimes You Cannot Reach a Deal
A great closing comes with two happy sides and sometimes this cannot be reached.
However, do not fret. There are homes out there for everyone and maybe you can reach a good compromise with the next seller.
The Bottom Line
Negotiating after a home inspection is no easy feat.
However, if you have the right Realtor, a great home inspector, and use these tips to your advantage you are well on your way to making a good real estate purchase.
If you have further comments or questions, be sure to comment below.
Also, if you are in need of a home inspection, use our free quote option to get a quote and learn about our services.