To use a home inspection report effectively to negotiate a lower price on a property, follow these key steps:
Review and Understand the Inspection Report with Your Realtor
- Go through the detailed home inspection report carefully with your real estate agent. They can help you identify which issues are significant enough to warrant negotiation versus minor or cosmetic items you might accept or fix yourself later.
- Focus on major problems such as roofing, foundation issues, electrical, plumbing, HVAC systems, evidence of water damage, building code violations, structural defects, or safety concerns that could be costly to repair.
Prioritize Repairs to Negotiate
- Make a list of needed repairs categorized by severity and cost. Concentrate your negotiation efforts on costly or critical repairs that affect the home’s safety and value rather than minor cosmetic issues like paint, lighting fixtures, or cabinets.
- Decide whether you want the seller to perform repairs before closing, offer a price reduction, or provide a credit toward closing costs or future repairs.
Use the Inspection Report as Your Negotiation Tool
- Present the inspection findings to the seller as objective evidence of issues with the property. Use this to justify your request for a price reduction or seller concessions.
- Your real estate agent can help negotiate on your behalf, suggesting options such as a price cut, seller credits, or a home warranty to address concerns if the seller is reluctant to make repairs.
- Start negotiations promptly after receiving the report to maintain momentum and leverage in the process.
Consider the Market Conditions
- Your ability to negotiate a lower price may depend on the current real estate market. In a buyer’s market where sellers are more motivated, you’ll have more leverage. In a seller’s market, you may need to focus more on credits or repairs rather than demanding a significant price cut.
By carefully analyzing the home inspection report with your agent, prioritizing significant repairs, and presenting your requests backed by the findings, you can negotiate a lower purchase price or seller concessions to save money and reduce your post-purchase repair costs.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-can-i-use-the-home-inspection-report-to-negotiate-a-lower-price/
