Finally, you have saved up enough to buy a new house. Hurray! It feels great, doesn’t it?
But before you enjoy the peace of owning your home, you need to do a few boring things first. One of them being a home inspection negotiation.
If you are ready to make a deal but don’t really know how to go about it, then you have landed on the right page.
Let’s dive into a step by step explanation of the process itself and tips on how to win home inspection negotiations.
What Do Home Inspectors Look For?
First, it is important to highlight the critical areas that your home inspection report will focus on. They include:
• Damp Basements
• Plumbing faults.
• Wiring problems
• Roof and chimney
Home Inspection Negotiations
After the inspection report is out, you and the realtor should go through it together.
Discuss the overall condition of the home and property. Don’t do this in a rush as it can make huge differences in the overall price. In rare cases, the contract is terminated due to too many issues.
Make a list of the things you find unsatisfactory. The list is like a compass in the real estate world. With it, you can estimate how much the repairs will cost you and make a sensible deal with the seller.
Be mindful of the seller and avoid exaggerating some features just to lower the price. In some cases, this can make the seller terminate the contract. Fortunately, home inspections in the Northeast Ohio areas are done thoroughly.
Now, let’s look at some tips that will help you in getting the best deal
1. Ask For A Cash-Back Credit For The Repairs To Be Done
If you are selling a house, it is most probable that you don’t want to spend another minute or penny repairing it. As a buyer, it is important to understand that the seller will not repair their old home with the same consciousness as you might.
Besides, being in charge of the repairs lets you remodel the house to your liking. At the close of escrow, take the cash-back credit and use the money to do the repairs yourself.
This will also save you a lot of back and forth between you and the sellers. Think of it as eliminating one more thing to think about during stressful period.
2. Know What You Can Ignore
Be wise not to trade big money for small money.
Some things on the inspector’s list might only need easy fixes. These are things that you can omit while negotiating with the seller.
Am not saying you shouldn’t include them, just make sure to prioritize the expensive repairs.
You can argue that you only need a few items repaired and therefore the seller should find it easy to meet the requirements. This action will leave the seller unable to avoid paying for the really important things.
3. Soft factors
When buying a house, we tend to focus more on the current price of the house plus the cost of repair and forget all about soft factors.
For instance, a particular house can have a sentimental value to you. Maybe it’s the house grew up in. Assign a monetary value to this and add it to the original cost.
Also, a house could be in a location that saves you time by being near a school for the kids and your workplace. If the location can give you extra hours in the evening, factor it in.
It may seem a lot of work, but in the end, you will have a clear insight into how much you value the house.
Imagine bailing from a deal only to realize that the house was perfect for you later on.
4. Get to know the seller
You might roll your eyes and wonder if you have the time for new friendship amidst all these plans for the new home.
But getting to know the owner of the home is important, Have a clear understanding of their values. Use this to your advantage during the actual negotiation.
Sellers have an emotional attachment to the house. Therefore, they would like their new owners to value it as much as they do.
Showing that you have similarity in values might let make them lower the price.
5. Have a poker face
You are a buyer and this is business. Any sign of emotional satisfaction or otherwise could have an impact on the price.
Expressing how happy you are with the place, cold haunt you in the future. The seller knows that they don’t need to impress you any farther and might even try and ask you for more money
For instance, discussing what color is perfect for the second bedroom will strip you of your bargaining power.
If you really like a place, don’t let it show or let the excitement blind you from seeing some faults.
Also, be a kind negotiator. Negotiating suggests that both parties get to air out their views and come to an agreement. Therefore, it is highly advisable not to have a confrontational approach.
Sellers are more likely to be cooperative of the buyers are nice and easy to talk to.
6. Caution
Many people have been scammed through real estate deals. Keep your eyes wide open for any irregularities.
Feel free to call the home inspector for any clarification. Don’t wire the money if you are not satisfied with both the financial and legal terms of the sale.
Make a Good Deal
Home inspection negotiations can keep everyone involved on the toes. Even though the home inspector came back with bad news, you can find a way to turn it around.
Be wise about this and get the best deal you can with the ‘prioritized items’ list.
Remember, buying a house is one of the largest financial leaps of your life. It has a huge implication and you should take time to think through everything before you start.
Check out this page for more about home inspection.