After the Home Inspection – The Negotiation

Every property for sale should undergo inspection. As a buyer, part of your responsibility is to have this done. This is very helpful to make sure you are paying a property for what it is actually worth. However, home inspection also triggers a different kind of activity. It initiates negotiation.

Negotiation is staple process in home buying. As mentioned above, it can be triggered by home inspection. The number one point for negotiation is the price. Homebuyers would normally want to lower it. However, there should always be a reasonable basis for its negotiation. And the result of home inspection shall give you the answers.

One thing you should bear in mind though, negotiating after home inspection have its legal aspects. For you to do this, you must have a contingency clause on your purchase offer. In every purchase agreement, buyers are protected from the “as is” conditions of the seller (this means property will be purchased as it is), through the contingency clause.

One thing a buyer should bear in mind is that not all of the defects uncovered in home inspection will be fixed by the seller. Although as a buyer, you have the right to demand for this, but you also have to consider the seller’s ability to pay for the repairs. If you want the property so much, you and your real estate agent should be able to create a win-win situation for everybody. Besides, you have to remember that the house was previously occupied. Therefore, it will surely have normal wear and tear defects. Not unless if the property is newly constructed, you may have the right to expect everything is brand new. If the seller is a busy person, you can have those defects fixed, provided they will shoulder the expenses.

Some sellers may have already pointed out the minor defects on their disclosures. This way, there will be no surprises. When it has become known to your knowledge, this simply conveys a message that you would have to shoulder the expenses in the event defects are uncovered. So be prepared to accept or walk away. Sellers at this point may consider negotiating anything.

However, if the seller won’t perform any of your request, you can always be more specific in your negotiations. One thing you can do is request for the purchase price to be lowered. For example, a $200,000 worth property will be lowered to $194,000.

If the seller does not accept, be prepared to walk away. Remember, you are purchasing a home. You want to make sure you are investing on a good property. If you think you cannot live with the condition of the house, it is best not to pursue it.

Should you cancel the purchase due to defects, always bear in mind to cancel within the expected time frame. Withdrawing offers within the specified period will allow you to walk away without losing your Earnest Money or worse being sued.

Negotiation is not a game. This is also not a right of the buyer to get what he or she wants. This is a process of creating a compromise for both parties. Therefore, it should be done within the right reasons.