After Home Inspection-Negotiation

Published: 22nd September 2009
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Every time a buyer purchases a property, it is recommended that they obtain a home inspection. Home inspection is a review of the property. At the end of the inspection, defects in the house that were not disclosed by the seller will be determined. Buyers need to know them as they are determinants for the pursuance of purchase.

However, if the house has major defects, it doesn't mean the buyer would just walk away from the deal. Most of them would want to negotiate. In this aspect, there will be two points for negotiating: First, the fix-ups and second, the price.

Negotiating fix-ups

In the real sense, sellers are not obliged to cover them. At the beginning of the sale, most sellers would make defects be known to their buyers. This means with the price tag established, the defects has already been considered and it is part of the package. That is why, they would normally state the "as is" condition in the agreement. However, buyers have contingencies for sale. No purchase will pursue until their conditions are met. This is the point where a negotiation would be brewing.

One way or another, somebody has to take care of the fix-up. Sometimes, a seller would agree to shoulder some of the repairs but not all. If it the defects are known to the buyer prior to signing the deal, obviously, the expenses shall be bore by them.

However, it is the responsibility of the seller to sell a habitable property. If there are major defects, whether disclosed or not, it should be taken cared of. Some sellers would normally shoulder the expenses but the burden of finding a contractor is left to the buyer. This situation may allow savings for the buyer, since they can choose a cheaper deal for the repairs.

Negotiating a price

If the seller refuses to make the repairs, buyers will normally be drawn to lower the price. Some sellers would agree to this just as long as they can still pocket a gain from selling. Most of the time, the negotiated price would end up in between the asking price and the lowest offer price you've made. However, there will still be instances when sellers would knock out several thousands of dollars for super major defects uncovered.

In negotiating after home inspection, it is better to create a win-win condition, as both parties can mutually benefit from the agreement. The seller and the buyer can walk away with satisfaction.

If you really want to purchase the property, then you should be ready to make a compromise. Sellers would do the same if they are desperate to sell. But the success of negotiation falls on your convincing ability and you cannot negotiate properly without reasons. Therefore, always be armed with it and make sure they are fair.

If in case the buyer and seller couldn't come into an agreement, buyers should walk away within the contingency period. Otherwise, they will lose their deposit and they may also end up being sued by the sellers.

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