Most prospective buyers and sellers think the “transaction” in real estate is finalized after the contract is signed. Deal-making and discussions sometimes don’t begin until the contract is signed. Once in escrow, conversations continue—even in real estate markets where competition is fiercer. After the home inspection, problems usually surface, leading to another round of bargaining for credits or improvements. Here are three buyer negotiation advice for repairs following a home inspection.
Ask for Credit for the Work to be done.
The vendors are about to leave. They are probably packing and daydreaming about their life after the sale if the property nears closure. Repairing their aging house is the last thing they want to do. It’s possible they won’t approach the job with the same diligence as you, the new owner, would. They cannot even give the task much priority.
You can utilize the money from a cash-back credit at escrow’s end to finish the job on your own. Most likely, you could perform the task better than the merchant.
Finally, if you receive the credit, there will be less back-and-forth to ensure that the vendor did the repairs appropriately.
Think Big Picture
You probably won’t worry if a little portion of a bathroom floor is broken, if the faucet leaks, or if the tiles require caulking if you know you’ll be remodeling it in the near future. Those issues will be resolved during your next makeover.
Negotiations are still open on the repairs, though. Your closing fees will be partially mitigated if you request a credit from the seller to address these problems.
Keep Your Plans to Yourself
A reputable listing agent will accompany you, your agent, and the inspector on the home inspection. If you disclose your goals or your degree of comfort with the property in front of the listing agent, it might come back to bite you during further negotiations or talks.
They will be more ready to let the seller know if they think you are uncomfortable with the home inspection. On the other hand, if you spend two hours choosing paint colors and measuring the areas, you lose negotiating leverage.
The sellers will undoubtedly learn about your plans for a complete kitchen makeover if you make that information known. Additionally, they won’t be as likely to give you credit to fix parts of the kitchen cabinets during repairs.
Eyes Wide Open
Never sign the original contract with the expectation that you may and will lower the price following the examination. It will bite you in the rear, especially in a cutthroat industry.
There is nothing to discuss if the property inspection is perfect. You run the danger of alienating the sellers and potentially providing them motivation to go on to the next buyer if you try to bargain in any case to make up for what you lost during initial contract talks.
You must enter escrow with all of your eyes open. A real estate deal isn’t finalized until the money is exchanged and the deed is handed over. Be alert at all times. Otherwise, you run the danger of missing out on additional good chances for bargaining, which can result in buyer’s regret.