Emotions can get the best of home buyers & sellers at time of home inspections, and can put the sale, or purchase, at risk. Because 'inspection negotiations' are trying on everyone, preparing oneself in advance is paramount to success. This content is courtesy of my AR associate, Margaret Woda.
Everything is moving along smoothly from contract to settlement...
Loan pre-approval received
Home inspection scheduled
Suddenly, two weeks after the offer is accepted, the transaction hits a snag when you receive a list of repairs or replacements the buyer wants, based on their home inspection report.
This is the moment when your home sale can live or die, based on your response. That response may depend, to some degree, on how well your agent has prepared you for this moment or other factors such as the tone of the buyer's request or any wounds remaining from difficult contract negotiations.
Hopefully the home inspector will find few issues, if any, and you can just sign off on any minor requests from the buyer.
If that's not the case and you're feeling bullied by a long list of "outrageous demands," remember that the buyer was hoping for an issue-free inspection, too. Their feedback to you is based on the observations and recommendations of a licensed inspector who is obligated to carefully evaluate the condition of your property. A home inspection takes place with nearly every sale of residential real estate and any flaw identified by this inspector will likely be observed by the next inspector, if this sale falls through.
Separating your response from your reaction may not be easy, but it's important. Your reaction may be highly emotional; your response should be measured and business-like.
Depending on the terms of your sales contract, you probably have the right to accept, reject, or counter the buyer's request for repairs or replacements based on the home inspection.
- ACCEPT, and that's the end of it, other than making sure those items are addressed prior to closing.
- REJECT, and that could be the end of it because the buyer may decide to walk away, depending on the seriousness of the requested items.
- COUNTER, and it's likely you can come to some compromise.
Remember, a home sale is a business transaction and "compromise" is inherent in any business transaction. Your agent will help you evaluate the buyer's home inspection feedback to you so that you can respond in a responsible manner that won't kill your home sale.
Margaret Woda - Real Estate The Woda Way
As a licensed Associate Broker in the D.C. - Baltimore - Annapolis area, I specialize in Anne Arundel and nearby Prince George's Counties, Maryland, including Fort Meade, Joint Base Andrews, and the U.S. Naval Academy. If you enjoyed reading this post and want to learn more about Real Estate the Woda Way, please visit my website at Margaret Woda.com or contact me today.
Margaret Woda, Long & Foster Real Estate, Inc. (410)451-6245|MWoda@mris.com