How To Negotiate Repairs After Home Inspections
Contrary to popular belief, the “deal” is not done right when you sign the contract on a new home. A lot of the time, deals are negotiated after the home inspection between buyers and sellers. The key is to be prepared when you reach this stage of the process. Here’s a few tips that might help:
Cash-Back Credit: At the close of escrow, you can ask for a cash-back credit and use that money to repair things that may still need fixing post inspection. Usually sellers on their way out of a property lack the motivation to get these things taken care of themselves. With your cash-back credit, you won’t have to rely on them to get something fixed. You can handle it yourself to make sure it’s done right.
Look at the Big Picture: When you’re looking over the inspection report, consider the plans you have for the future of your property. If you’re considering a complete remodel in the bathroom or kitchen, taking the time to work out the little fix-ups in this areas may not be worth it right now. You’ll limit your costs by only using you cash-back credit to fix issues in areas of the property that aren’t going to be fully remodeled.
Keep Your Eyes Wide Open: This ties back to what was mentioned earlier. Just because you’ve signed doesn’t mean the deal is completely done. A real estate transaction is never complete until the deed is transferred and money trades hands. Never complete and sign your original contract assuming that you’ll be able to negotiate things after the inspection. If the inspection comes back absolutely flawless, you’re not left with much of a bargaining position. This is especially harmful in a competitive real estate market. A seller can always pass on you and your offer and move on to the next one.
Featured photo courtesy of Gabriel Farrel via Flickr