The actual inspection often takes only a few hours. Getting the final report to help you gauge whether to close the sale still or not usually takes a few days to two weeks. A buyer’s decision should not be solely based on the report. You will find that sellers are often willing to compromise with buyers on certain aspects. They will both talk about after finding out the home inspection results.
Once a buyer receives the report, he or she must evaluate if the issues presented are bad enough to cancel the sale. Maybe they’re willing to negotiate and work with the seller for a fairer deal for both parties. It may take some time until the negotiations are completed. There is always no guarantee that it will lead to closing.
Both parties can either finalize and iron out various details before closing the sale or cancel it if negotiations fall apart.
How Do You Negotiate What Gets Done?
Both buyers and sellers know that closing will depend a lot on the results of their negotiations. This can be the most stressful for many, even with real estate agents present to help them out. This is because they know that negotiations can make or break the sale.
When it comes to negotiating, always keep these in mind:
- Never reveal any of your renovation plans, as it will work to your disadvantage. This will give the seller the impression you are completely decided on getting the house. You may easily acquiesce to anything to get it.
- Focus only on the major issues. Talking about trivial matters can serve as an excuse for the seller to only work on those minor issues. They know it will be cheaper to address than major ones. The seller can agree to repainting the entire house and changing the flooring being incessantly complained about. They might do it if the buyer handles the more expensive roof replacement.
- Always consider the option of walking away, no matter how much you want the property. As a buyer, you must ask yourself whether these issues are still worth fixing or you are just better off finding another property.
- Consider the market. If you know that you are not the only interested buyer, it is best that your demands are kept to a minimum. Sellers have the upper hand in this scenario. They can simply choose the less demanding and more reasonable buyer to sell their home to.
- Be respectful. Many buyers think that they always have the upper hand in negotiations. They forget that sellers also have the right to refuse potential buyers they do not like, even if it means losing a possible sale.
Major negotiations happen after a home inspection and before closing. The final report will serve as the main basis for both buyers and sellers to agree. Any findings should ideally be first discussed with the inspector present so that both parties will understand the seriousness of the issues discovered.
These negotiations will typically start with deciding who will shoulder the major repairs needed. Save for those that sellers must handle following state laws.
If both parties agree to get the house fixed up by the seller, the buyer must formally give the seller a Request for Repairs form or RR form. This list enumerates the repairs that a buyer believes must be handled by the seller. They should know that sellers are free only to accommodate repair requests that they see as reasonable, not everything a buyer has listed down.
There is no guarantee that the repairs handled by the seller will meet the buyer’s standards, especially if the seller is rushing the sale. But if you agree that the seller will fix these issues, request a home warranty for your peace of mind.
A more advisable solution is for a buyer to handle the repairs and negotiate for a repair credit with the seller. It means the buyer will handle the repairs. Still, the repair costs will be deducted from the property’s final sale price. Getting credit is also advisable if the buyer knows that the seller is too busy or financially incapable of doing the repairs needed.
With this, buyers are assured that the repairs are handled according to their standards. The sellers avoid the hassle of handling repairs before closing. This is a preferable solution for many buyers and sellers.
What Things are Mandatory?
One aspect that both buyers and sellers often do not see eye-to-eye on is the repairs needed after an inspection. Many buyers demand that sellers repair every flaw on the home before moving forward. In contrast, sellers are only willing to handle important issues based on the report and mandatory fixes. IT depends on state laws.
But in general, any defect discovered after an inspection that compromises the health and safety of the people who will occupy the home must be fixed.
The question now for both the buyer and seller is: who will shoulder those repairs? This answer will depend on their negotiations but in most cases. Sellers are expected to get these major repairs done.
