How to Negotiate for Those Costly Repairs - After a Home Inspection
When looking to buy a new home, there are many reports that will be ordered to ensure you are making a wise investment. This will include an appraisal, which will confirm the value of the home and a title report to ensure there are no additional liens on the property. Another very important report that is frequently ordered is a property condition and inspection report.
When you receive a property condition and inspection report, a licensed home inspector will carefully go through the home to ensure it is in good condition. The inspector will then provide you with a detailed report of everything in the home that is not in top condition, including items that absolutely need to be repaired in order to either comply with the building code or to ensure the place is safe to live. The inspector will also provide you with an estimate of how much every item on the list will cost to repair. Once you have received the inspection report with the costs of everything that needs to be fixed, there are many options for how to handle the costs of the repairs. While you can opt to pay for everything yourself, it may be a more fiscally ideal option to negotiate with the seller to pay for the repairs themselves.
When you are looking to negotiate with the seller to have the repairs paid for, the first option would be to ask for a credit at close. You can provide the seller and their REALTOR® with a summary of all of the repairs that are included, including the price it will take to have everything repaired. It would normally be a good idea to at least ask for the immediate and necessary repairs to be covered. The easiest way for this to be handled would be to ask have a credit provided to you at close. This way the money will be handled through the title company, which will ensure that it ends up on the settlement statement.
In many cases, particularly where there are not a lot of significant repairs that need to be made, the seller of the property will comply with your request in order to ensure the sale takes place. However, if there are a lot of repairs that are needed, the seller may not want to pay for all of the repairs. In some cases, it could be because they feel that the quoted repair price is more than it would cost for them to complete the repairs on their own. In these cases, a good option would be to allow the seller to make the repair on their own. After the repairs are completed, you can have the inspector complete a follow-up visit to ensure that everything was done correctly.
While sellers are normally willing to either pay for the repairs or have them completed on their own, there are situations when the seller may not want to do either. In these situations, it would be best to try to negotiate with them to provide you with reimbursement for a portion of the expenses. Through the use of your REALTOR®, you can negotiate with the seller to have a portion of these expenses paid for at close. If they are unwilling to budge and negotiate, then you will have to make the decision as to whether you are willing to pay for the repairs on your own. If the repairs are cosmetic in nature and do not cost too much to complete, then it may be a better option to move forward with the purchase without receiving a credit.
If you have any questions about buying or selling a home, please "Ask An Expert." Don't hesitate to contact the team at Key Solutions Real Estate Group for assistance, or call (941) 894-1255.