Using A Property Inspection Report To Negotiate A Home Purchase

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You can use a home inspection report to negotiate a better home purchase deal. The following tips can help you with the negotiations.

Focus On Structural Issues

It's possible that the property inspection report might unearth a list of issues that require fixing. However, unless you are dealing with an extremely dilapidated house, most of the issues are likely to be minor or moderate. You should know the difference between minor, moderate, and major issues so that you can focus on the major ones.

Generally, the major issues are the structural issues or issues that interfere with the safety or functionality of different parts or systems in the house. In many cases, structural issues require a professional contractor to fix. A broken heating system that requires replacement, for example, is a major issue. Minor issues are usually cosmetic (such as faded or chipped paint) and moderate issues are more than cosmetic but can be fixed via DIY repairs (like a damaged section of the fence).

Ask For Repair Money, Not Actual Repairs

It is customary for homebuyers to ask sellers to repair home defects revealed by the home inspection. This is not terribly bad, but it is not too wise either. Think of it this way: the seller is probably in a hurry to dispose of the house, and if you request for repairs, you are not guaranteed the best work possible.

If the seller gives you repair money, say in the form of a discount, you get to decide on the contractor for the job and can even micromanage the renovation project. Thus, ask the seller for a repair credit or discount and handle the repairs on your own.

Find Out the Value of the Repairs

Before you commence the negotiations, find out how much you will need for the repairs. Consult a few contractors to get an accurate approximation. This will help you negotiate with the seller because you know what to ask for.

Don't Mention Your DIY Abilities

It's possible that you may be able to handle some of the repairs on your own if you have some construction or renovation experience. Maybe you helped your uncle renovate his house and you now consider yourself handy with the tools. Don't mention this to the seller because it may hamper the negotiations. The seller might not be willing to concede much during the negotiations if they know that you can and will handle some of the defects as DIY projects.

For more information on real estate homes, contact a realtor near you.