To read part one of this series, click here.
Once you have the home inspection report, it is important to know what your options are in the negotiating process moving forward. There are typically four different ways you can approach negotiations after a home inspection. These options include:
- Ask the seller to complete necessary repairs. Your first option is to ask the seller of the home to complete any necessary repairs you would like corrected before moving forward with the home purchase. When asking the seller to perform repairs it is important to be very specific, as you will not be the one in control of the repair process. Be clear on exactly what you want done, by whom, permits pulled, inspected, and approved, a date that the work should be completed by, and documentation that should be provided to the buyer regarding the repairs by a set date.
- Renegotiate the price of the home. Your second option is to offer to take care of the repairs yourself as the buyer, but to renegotiate the purchase price of the home to make accommodations for the out-of-pocket cost you will have in completing the repairs. The advantage to this approach is that as the buyer you can choose your own contractors to complete the work and monitor and control the repair process from start to finish. Although this is a very common approach in negotiating, it is important to realize that this will not leave you with any extra cash to have the repairs done, it will simply lower the overall price you are paying for the home. It is also possible to negotiate a cash back credit at the close of escrow, in which you will receive the cash you need to have the repairs completed on your own. Either way, there is a good chance that you will put more care into making sure the project is completed correctly than the seller will.
- Cancel the purchase agreement. As a buyer you can choose to cancer the purchase agreement after the home inspection if there are too many issues with the home, or if the issues are simply more than what you want to deal with. The purchase agreement can also be canceled if the buyer and seller are not able to come to an agreement in the negotiation process for the repairs.
- Do nothing. As discussed previously, if the home inspection report comes back with only minor issues that need repair, issues that were obvious prior to the offer being made on the home, or issues that are not necessarily an immediate concern but might be a concern in the future, the buyer should consider accepting the home inspection report and not go overboard in their requests to the seller.
HAVE A GOOD REALTOR
When it comes to the negotiation process for repairs and buying a home, this is one area that you do not want to try to do it on your own. An experienced professional realtor is going to be able to help you navigate which repairs you should be asking for a negotiation on and will help you determine the best method to take in negotiating those repairs. They will also be skilled and experienced in the art of negotiating such repairs and will make sure you walk away from the negotiation table a winner.