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Home Inspection Real Estate

How to Reduce the Home Price After the Home Inspection

In the process of finding a house for sale, usually, when the seller agrees to an offer, the buyer orders a home inspection to get to know the actual condition of the property. Since, as a buyer, you are supposed to pay for the home inspection, and it is your right to make sure that everything from the entrance door to the roof, walls, floor, kitchen, and washrooms are in optimum working condition, you also have the leverage to ask for discounts from the seller if the inspection report shows severe damages.

It is perfectly normal for any used house to have some defects and shortcomings when examined by a professional home inspector. If any severe damages are potentially a safety hazard, like leakages, breakages, termites, etc., it is in seller’s interest to solve these issues as the mortgage lender may reject your application based on such a home inspection report, and the whole deal can fall out. In this scenario, it is the responsibility of a good professional real estate agent to get maximum benefit to the buyer by negotiating wisely with the seller or their agent. Usually, the process involves hiring the best local company that does house repairs and get a quote from them on all essential improvements pointed out in the report by the home inspector.

This negotiation that aims to get a monetary concession from the seller’s side has Three possible primary outcomes: Either the seller fixes the repairs or the buyer fixes them and gets paid from the seller, or the seller reduces the price of the house to compensate for repairs. Again, the best possibility can be chosen only after carefully evaluating the terms of the agreement, the home inspection report, and the situation on-ground. The best person to deal with this situation on your behalf is your real estate agent. They have the depth of experience one requires, as they deal with similar issues regularly. Your agent can guide you to choose from the best of these paths in a manner that benefits you most in terms of finance.

Remember, the seller never agrees to all repairs as most of them are either not of an urgent nature or do not pose any imminent structural danger to the building. Therefore always expect a compromised solution to this price reduction negotiation. If the possession date is near, it is in the interest of the seller to accommodate the cost for repairs in the house price and save the hassle. If the discount or cash-back is enough, this may also be a sweet deal for you. On the other hand, if there is no urgency, the sellers can agree to do the repairs on their own, which is a more beneficial option as they would control the cost. If you, as a buyer, take on the challenge of repairs, you can hire the best professional repair company, which would obviously cost more and hence not a favorable option for the seller. Whatever mode you choose for the implementation of the house inspection report to reduce the price of the home, try to keep the negotiation as fair as possible, otherwise it can, in some cases, lead to a fall out of the whole deal and you would have to start fresh looking at other homes for sale.

Article by: Desmond Thornton https://thorntonhomeinspections.net