Negotiating Home Purchase After Inspection
A property inspection informs you about the general condition of the property you are about to buy. For example, you know whether the cooling system is sound, the roof is leaking, or the property has a pest infection history. The inspection report may give you ammunition to use during the negotiation.
Below are tips on negotiating the purchase once you get the inspection report.
Read the Inspection Report Thoroughly
First, read the inspection report and understand the issues the inspector found. This step is necessary since it allows you to negotiate from an informed position. Don't just read the summary page with the major issues and house features. Read the entire report to get a good understanding of the issues you want to use for negotiation.
Ask for clarification on issues you don't understand. The home inspector who prepared the report, specialist inspector, or building contractor can help clarify. Your presence during the home inspection may help you better understand the house. You will see the house better, ask the inspector questions, and get instant answers.
Don't Fixate on the Price
Many use home inspection reports to negotiate home purchase prices, which is not bad. However, the price is not the only thing you can negotiate after a home inspection reveals issues with a house. You can negotiate for repairs, closing and possession dates, and seller concessions. For example, you can ask the seller to fix a malfunctioning HVAC and pay some closing costs.
Focus on the Major Issues
You might not get everything you want from the seller, but that is okay. Understand your priorities and ensure you get as many of them as possible. Consider a case where the inspection report reveals problems with:
- The electrical system
- Plumbing system
- Heating and air conditioning system
Evaluate the issues and focus on the major ones. Consider a case where the inspection report reveals that the AC is failing and an electrical outlet is not working. You may get the seller to fix the AC and handle the outlet replacement on your own after purchase.
Show Evidence
Show the seller evidence of repair costs during the negotiations. Don't expect the seller to take you at your word. For example, don't inform the seller that the AC requires $3,500 to work efficiently. Get quotes from AC contractors that show you did not just guess the figure. Do this for all the major issues in the inspection report to strengthen your negotiation position.
Contact a company like Big Valley Properties to learn more.
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