Last time, we talked about how to get ready for a home inspection and what to inspect from it. Today, we’re moving further along in the process to talk about how to handle negotiations that occur after the home inspection.
Buyers today will usually ask for repairs or some kind of concession as a result of a home inspection. How we handle that is vital to the success of your transaction. There are really three ways to handle them:
1. Just say no. You always have the option of just telling the buyer that you won’t do any of the repairs they asked for and that they are on their own. I don’t really like to use this approach because you risk losing the buyer. However, it is the appropriate response in a few select cases. The home has to be in great shape and have a lot of buyer activity in order to handle it this way. The buyer also needs to have a long, unreasonable list of repairs as well. In a specific case like this, it’s an appropriate strategy to use.
2. Do some of the reasonable repairs. How do we decide what repairs are reasonable? For me, I consider whether or not another buyer would ask for the same thing. If you can determine that, yes, another buyer would ask for this, then we should probably go ahead and make that repair. However, making repairs isn’t always the best way to go because you’re actually setting up a little loophole in the contract. If you don’t make the repair quite to their satisfaction, they can walk away or re-negotiate.
3. Give the buyer financial consideration for the repairs. This is my favorite method. There are a lot of ways we can go about this. We can lower the price of the home or increase the closing cost credit for the buyer. It’s a much safer way to handle repairs in my opinion.
So that’s how we usually handle home repair inspection negotiations. If you have any questions for me in the meantime, don’t hesitate to give me a call or send me an email. I would love to hear from you.