HomeBuyer University: Buying a Home, Just Got Easier
Course 2: Things Every Home Buyer Should Know
Step 1: Mortgage Approval Factors
Step 2: Understanding Mortgage Payments
Step 3: Renting vs. Buying
Step 4:Mistakes to Avoid
Home Inspection Negotiating Tips
Home inspections will identify issues discovered in a home, with additional suggestions from the inspector. It’s important to understand that sellers are not mandated to fix those issues. It’s up to the buyer and seller to negotiate what will and will not be addressed. To promote successful negotiations, it’s important for you to focus on the repairs that are needed, rather than the could sell the home for more than the current price listed.
Identifying Defects Discuss
With a negotiating strategy in mind, buyers should identify a list of what they want to negotiate. Although you may have want everything on your list, be careful not to alienate the seller. Buyers who ask for every single repair often reduce their chances of coming to a compromise. For instance, if there are a few minor repairs and one lard one, you might be better off asking the seller to only address the large repair. If there is a major item and several minor ones, it may be better to ask that only the major one be completed. Regardless of what your list may look like, your real estate agent will guide you in preparing a written request to submit to the seller.
Possible Negotiation Outcomes
Once you submit your list to the seller, the seller can:
- Agree to address your entire list prior to closing on the home.
- Agree to address a few of the defects prior to closing on the home.
- Give a seller’s credit to the buyer (this can be a reduction in purchase price or a credit toward the closing costs). In this case, the buyer will fix items themselves after the loan is closed.
- Be unwilling to negotiate at all.
Negotiations may continue several times until the buyer and seller come to a compromise. However, there are times both parties can not come to an agreement at all. It’s important that all parties remain on respectful terms, because both may be more giving during negotiation discussions. On the other hand, if one side feels taken advantage of or disrespected, compromise can be difficult to say the least.
While discussing negotiating strategies with your real estate agent, you should keep in mind the many aspects of the transaction. Keep in mind that inspection reports include both repairs needed and recommendations, and that most sellers will not do upgrades to the home. If the buyer and seller treat each other with courtesy and respect – the chances of acceptable outcomes will greatly increase.