You’ve looked at a lot of houses. Finally, there is one that meets your needs and you’ve taken the plunge. Your contract was accepted and now it’s time for the inspection phase. The market has changed from the feeding frenzy of a few years ago when buyers were lined up waiting for your deal to fall through so they could pounce. Now, in most cases, sellers are lucky to have you stepping up to the plate.
The home inspection negotiation is an opportunity for you, as the buyer, to have structural, mechanical, or environmental issues fixed, receive money credited toward your closing costs, and/or get a reduction in the purchase price from the seller. I say “opportunity” because there are no guarantees that you will get anything out of it, other than a report telling you about the status of your future home.
Here are my tips for getting more out of your inspection requests…
1. First things first, never insult the seller’s home. They may have years of emotional attachment associated with it and anything negative you say will just start closing the door to an amicable resolution. Pull statements directly from your inspection report and do not color it with your own emotion. For example, say “the furnace is near the end of its useful life” not “the furnace is an old piece of junk.” Be nice!
2. If you are suggesting that the purchase price be reduced or that you receive money to cover closing costs rather than having inspection issues remedied, you should have at least one estimate from a qualified contractor to support the amount you are requesting. Expect the seller to get their own estimates, which may result in a different (most likely lower) amount. Depending upon how different the quotes are, be prepared to negotiate the amount.
3. Support your request for fixes with pictures of the issues. It will let the seller understand that the problem actually exists and make it easier for the contractor to locate the specific problem.
4. Focus on major mechanical, structural, and environmental issues- don’t go after the piddly stuff. A seller is more likely to respect your requests if they know it’s something you can’t easily fix and need the assistance of a professional. If you’re asking the seller to put on new downspout extenders that can be purchased at Home Depot for $3, they’re most likely going to dismiss that request and it will reduce the legitimacy of your other requests.
The most important aspect of your inspection is that you hire a highly qualified inspector that will accurately identify issues. In a slow market, buyers will have an easier time getting their concerns addressed. And if you find that the seller is not willing to address your requests, there are plenty of other houses out there that will probably also meet your needs.