How to Negotiate For Repairs After a Home Inspection
Tips for Negotiating Repairs After Your Home Inspection
Decide What You Want The Seller To FixIt is possible for buyers and sellers to share some – or all – of the repairs listed on the inspection report. Each situation will vary, however. Sometimes, it is the buyer who is responsible alone, or it is the seller who is responsible alone. In reviewing the inspection report, identify the items that the seller should repair. Try always to approach the seller in a kind, courteous manner. Your realtor will most likely handle hefty negotiations on your behalf. You should also work with your realtor to determine which repairs you will be responsible for and which the seller will be responsible for.
Discuss What Repairs Are Most ImportantIt’s important to keep in mind that almost all homes will have some sort of problem – nothing is perfect. Divide the list into three sections: 1) Major defects, which will be expensive to repair 2) Issues that aren’t as expensive but also not as cheap 3) Small, minuscule defects that are not of immediate concern. Make sure you focus on the major defects rather than the minor ones. It is easy for buyers to lose sight of significant issues that will cost the most to repair when they focus on the smaller, less urgent items on the list.
Request A Quote From A General Contractor For RepairsFollowing the inspection report, a buyer may want to ask the inspector for an estimate of the repair costs. The inspector cannot provide an estimate in almost every situation. On the other hand, a contractor can provide some ballpark figures. You may also be able to get some estimates from your realtor. You may also be able to find recommended contractors through your realtor. There is a good chance that your Realtor is familiar with standard repair costs if he/she has been in the industry long enough. Give your realtor a list of the items you want the contractor to complete, and they should be able to give you an estimated cost once your realtor has contacted them.
Would you Prefer Money or Repairs?Sellers should instead offer repair money (typically called a ‘credit’) to buyers rather than handle repairs themselves. The buyer can use a credit to reduce their closing costs to offset the cost of repairs. The seller does not need to be involved in the repairs since the buyer can handle them themselves. If you’re a seller, you won’t run the risk of your buyer constantly checking in on the progress of the repairs. If they are unhappy with the initial repairs, they may also request that additional work be performed. You’ll also have more items on your to-do list while moving if you’re the middleman between a contractor and a buyer. The buyer should find the contractor and supervise the work whenever possible. The buyer is usually provided with the funds necessary to pay for repairs when they are provided with monetary credit. Taking a monetary credit is preferable to letting the seller oversee the work if you are a buyer. Since you probably have different expectations from the seller, it’s best to negotiate a credit so you can put more money toward the work. This will allow you to supervise all repairs from start to finish and eliminate the need for a middleman.
Repairs Are Not The Seller’s ResponsibilityWhen buying a home, many emotions are involved. Finding a home is exciting, but the seller’s refusal to pay for repairs can cause some stress and tension. Taking a moment to assess your desire for this property could help you make a better decision. Could this be your dream home? Can the repair costs be managed, or are they outrageous? In the case of manageable repair costs, you may regret walking away simply because the seller wasn’t willing to add a little equity.
Gratitude Rather Than Attack Should Be Used When Requesting RepairsYou should never demand that a seller pays for repair costs when communicating with them. Typically, the repairs are as shocking to the seller as they are to the buyer, especially since most repairs are hidden beneath the surface of the house, hidden from view. A home may have had a faulty foundation for years, and the sellers were unaware of it until they reviewed the inspection report.
Take The Seller’s Point Of View Into ConsiderationEven though it is easy to feel anger and resentment toward sellers, try to understand their perspective. The cost of repairs is not always the top priority for sellers since there are so many fees and costs to consider. The seller may want to assist the buyer with repairs to expedite the deal, but their funds may be limited, and they cannot afford to do so.
Who Pays For Repairs After The Home Inspection?Every transaction is unique, so repair costs can either be covered by the buyer, the seller, or both parties. It is possible for the buyer to require the seller to deal with significant safety hazards and other costly repairs, depending on the circumstances. If the seller refuses, the buyer may decide to back out of the deal.
Repairs are not mandatory unless they are required by local building codes or specified in the purchase agreement. It’s important to review the inspection report and prioritize the repairs based on safety and major defects.
Yes, sellers are not obligated to make repairs. However, negotiation is common after a home inspection, and sellers may offer assistance in the form of repairs or financial compensation.
Review the inspection report and identify major defects or safety hazards that are the seller’s responsibility. Work with your realtor to determine which repairs you will be responsible for and which the seller should address.
It can be helpful to get estimates from a general contractor for repair costs. While the inspector may not provide estimates, your realtor or recommended contractors can offer ballpark figures for budgeting purposes.
It often benefits both parties to request a repair credit from the seller, allowing the buyer to oversee and control the repairs. This way, the buyer can use the credit to offset closing costs and manage the repairs independently.
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