In fact, negotiations over the home inspection before closing can be more delicate than the first go-round leading to the purchase contract. But we\u2019ve pulled together advice on how to rein in troublesome requests, negotiate wisely, and make the fixes that work in your <\/i>favor to keep the closing on track.<\/p>\n The very word \u201cinspection\u201d has ominous connotations, but you probably already have an idea about some of your home\u2019s blemishes, like a small tear in a window screen, or larger flaws like a spot in the basement where water leaks in during a big storm.<\/p>\n Still, sometimes inspections findings can come as a surprise. \u00a0\u201cTermites might not be readily apparent,\u201d for instance, notes Taylor. That\u2019s why buyers in certain states who are getting a government-backed loan must also obtain a separate termite inspection<\/a>.<\/p>\n When he lists a home for sale, Taylor and his sellers \u201cperform a walkthrough to make a list of recommendations for repairs to make ahead of time, and to have a good idea of what may appear on inspection.\u201d<\/p>\n For some flaws that you and your agent spot, the best strategy could be to make a fix before that first showing. Your agent may point out that it\u2019s not worth leaving that snag in the window screen for potential buyers to notice, for instance. The cost of a repair can pay for itself\u2014and more\u2014in more interest from buyers, says Taylor.<\/p>\n Although a small number of sellers pay a few hundred dollars for an inspection before they put their home on the market<\/a>, it\u2019s not usually necessary to spot the issues that will arise, says Taylor. Besides, if you order your own inspection, you\u2019ll be obliged to report issues on the seller disclosure that aren\u2019t bothersome enough to come to mind otherwise.<\/p>\n The last thing you want is for the home inspection to occur at the 11th hour before closing and throw everyone for a loop. This is especially true if your buyer has a special type of loan or you suspect the inspection findings could drudge up necessary repairs.<\/p>\n That\u2019s why it\u2019s a smart idea to set an aggressive deadline for the buyer\u2019s inspection appointment and write that date into the purchase contract<\/a>. The sooner the inspection happens after both parties sign the contract, the better. This will allow wiggle room in the closing process for any negotiations and fixes.<\/p>\n When you negotiate the home inspection results before closing, the good news is you\u2019ve got options as the seller. With every request the buyer makes you can choose to:<\/p>\n The trick is knowing the best response for different types of requests and when to walk away if there\u2019s an impasse. This is something your agent can help you navigate (they\u2019ll have seen it all!) but let\u2019s dig a little deeper into each one of your choices.<\/p>\n Typically, if a repair doesn\u2019t need to be completed before the closing, and especially if it\u2019s a significant or big-ticket item, the seller shouldn\u2019t volunteer to arrange and oversee the work. In these scenarios, it\u2019s better to offer the buyer a credit for the cost of the job. Another advantage to this strategy: you won\u2019t field later complaints that the job wasn\u2019t performed properly.<\/p>\n To provide an accurate credit, you\u2019d secure an estimate from a licensed, reliable contractor<\/a> and then negotiate the amount offered to the buyer at closing. Then, you\u2019d follow through with the credit either with a check to the buyer at closing or by reducing the sale price by the credit dollar amount.<\/p>\n Sometimes there\u2019s no getting around the fact that you\u2019ll need to make a repair yourself before buyers will agree to close. The buyers may insist, for example, that they won\u2019t move in during a hot summer unless the AC is refurbished to good working order.<\/p>\n In a buyer\u2019s market<\/a> where you have less leverage, you could be on the hook for fixing a dated roof<\/a> or replacing the furnace just because it\u2019s old\u2014it all depends on what you\u2019re able to negotiate<\/a> and at what point you\u2019d walk away<\/a> rather than concede to repairs.<\/p>\n If your buyer is getting a government-backed mortgage<\/a> like an FHA loan, a home must also meet certain \u201cminimum standards for health and safety,\u201d says Daryle Messina<\/a>, regional manager of Homebridge Financial Services, Inc.<\/p>\n A major issue like a foundation crack could take longer to fix and with any repair you risk extending the closing timeline and delaying settlement if you can\u2019t get the job hired out and completed in time.<\/p>\n However, one benefit to making the repair yourself is you won\u2019t spend a dime more than what the actual job costs. In some cases with a credit, the estimation for the job could be higher than what appears on the final bill.<\/p>\n For any repair you oversee, \u201cMake sure you document with before and after photos, keep paid receipts, and have the work done at least a week in advance of closing,\u201d says Taylor.<\/p>\n Still, sellers don\u2019t need to yield to every buyer request. Hardly. Cosmetic imperfections, loose door knobs and handrails\u2014these items aren\u2019t urgent or a threat to the integrity or function of the house, so don\u2019t agree to them (so long as your agent concurs).<\/p>\n Got lots of interest from a show-stopping open house<\/a>, back to back showings, or multiple buyers submitting bids<\/a>?<\/p>\n Then you have the leverage to stand firm and reject repair requests, especially when the requests aren\u2019t serious in nature, Taylor notes.<\/p>\n No matter which way the market tilts, favoring buyers or sellers, \u201csome owners just don\u2019t want to deal with [repairing inspection issues] so they make it clear from the start that the buyer has<\/p>\n to purchase \u2018as is.\u2019\u201d<\/p>\n Also, a word of caution: It\u2019s relatively rare, but unscrupulous buyers who get cold feet may try to wriggle out by presenting an outrageous list of demands. \u00a0\u201cLet them go,\u201d counsels Taylor, adding that insisting on an early inspection allows you to quickly move on to another, more serious buyer.<\/p>\n Every home sale is unique, and a seller\u2019s response to inspection issues fit his circumstance.<\/p>\n The National Association of Realtors has studied the most typical concerns<\/a> to give you an idea of what\u2019s common, but let\u2019s explore a hypothetical.<\/p>\n Say a buyer hands you the following list of problems that came up in an inspection report, requesting that you respond to them in some fashion:<\/p>\n Here\u2019s how your negotiations with the buyer could land:<\/p>\n Ungrounded outlets: <\/b> Spongy soil: Damaged gutters: Missing roof shingles: Inadequate water pressure:<\/b> Pipe leak in the basement: <\/b> Dated but function light fixture: Post-inspection, if a buyer makes excessive or unrealistic demands, step back and consider how the cost of repairs fit in the total equation.<\/p>\n Here\u2019s an example to illustrate why: Taylor recalls a recent transaction where his seller had already closed on their purchase of their new home late in the year. Their own buyer made a ridiculous request for 35 repairs, \u201call picky, cosmetic things, and this was a home that was well maintained,\u201d he explains.<\/p>\n The objective of the buyer wasn\u2019t really to have all those changes made, but to secure more cash from the seller for their closing costs. And that was something the seller had no intention of caving on.<\/p>\n So Taylor made some calculations. \u201cIn Texas, if you own a home and occupy by Jan. 1, you are eligible for a homestead exemption on property taxes.\u201d<\/p>\n If the 35 repairs were made, the closing would never happen by the end of the year, and the buyer wouldn\u2019t get the tax break, worth $5,000. When Taylor pointed that out to the buyer, they quickly rescinded their over-the top repair requests.<\/p>\n The inspection process is routine\u2014virtually all buyers and sellers go through it. But when you\u2019re in the thick of it, it can feel like an uphill climb. In challenging moments, try to see things from a buyer\u2019s perspective before reacting emotionally. Never forget your end goal: to get the house sold and never look back!<\/p>\n Article Image\u00a0Source: (Startup Stock Photos)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" Negotiations over the home inspection before closing can be more delicate than the first go-round leading to the purchase contract\u2014here\u2019s how to rein in troublesome requests.<\/p>\n","protected":false},"author":86,"featured_media":9083,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"cybocfi_hide_featured_image":"","footnotes":""},"categories":[321,428,322,341],"tags":[],"class_list":["post-9081","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-attract-buyers","category-home-inspections","category-logistics","category-closing"],"acf":[],"yoast_head":"\n![\"\"](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/02\/home-inspection-before-closing-1.jpg\")
<\/a>Tip #1: Do an informal inspection with your agent before the for-sale sign goes up.<\/h2>\n
Tip #2: Set a deadline for the buyer\u2019s inspection to be scheduled after the purchase offer.<\/h2>\n
Tip #3: Know when to offer a credit, arrange for a repair, or stand your ground.<\/h2>\n
\n
Offer a credit for repairs that would delay closing<\/h4>\n
Repair issues that would prevent the buyer from inheriting a safe, comfortable house<\/h4>\n
Say \u201cno\u201d to excessive or cosmetic repair requests when possible<\/h4>\n
![\"\"](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/02\/home-inspection-before-closing-notepad.jpg\")
<\/a>Tip #4: Play out different scenarios: How would you respond to this hypothetical list of repair requests?<\/h2>\n
\n
\nAn ungrounded outlet doesn\u2019t contain a ground wire, an important protection against electricity sparking a fire\u2014so it\u2019s a serious safety issue. Your buyer or his mortgage lender may insist that it is repaired before closing. If not, it\u2019s best to offer a credit. You can expect to spend an average $202 per outlet<\/a> including materials and labor.<\/p>\n
\n<\/b>If after a rain, water isn\u2019t flowing down and away from the foundation, the remedy is typically relatively inexpensive\u2014about $500\u2014and can be completed by a landscaper in half a day, says Pauma Valley, Ca, certified home inspector Michael Casey<\/a>. Since this fix is pretty clear cut, and the buyer insists it be completed quickly, a seller could arrange the work, but \u201cit\u2019s nearly always better to give a credit,\u201d says Taylor.<\/p>\n
\n<\/b>At the more benign end, maybe all that\u2019s needed is a good cleaning or new gutter pipes and splash pans so that water runs off and away from the foundation. Got gutters that are bent, rusted, or the wrong size? You\u2019ll need new ones, costing an average of $4 to $9 per linear foot.<\/a> \u00a0Negotiate the cost and give the buyer a credit.<\/p>\n
\n<\/b>Missing shingles can be pretty common on roofs that are several years old. It\u2019s relatively inexpensive to replace a \u201csquare,\u201d the 10×10 inch piece that\u2019s used for replacements. Depending on how many shingles are missing, it might not be more than a couple of hundred dollars<\/a>. But why worry that the buyer won\u2019t like the look of the repair? Give a credit.<\/p>\n
\nA picky buyer may insist he wants a credit of a couple of hundred dollars for low water pressure. It\u2019s negotiable. You\u2019ll prevail with a firm \u201cno\u201d if in your market and situation, the buyer knows he doesn\u2019t have leverage.<\/p>\n
\n<\/b>Aahh! \u00a0That\u2019s why the floor is always damp near the basement laundry sink, the piping underneath has a leak. The rusted pipe needs replacement, but it\u2019s not an emergency. \u00a0It could be a relatively inexpensive fix, and a buyer might agree to take it on himself later. You won\u2019t know until you negotiate, and an experienced agent can judge how strong you hand is.<\/p>\n
\n<\/b>OK, this one shouldn\u2019t even be on the inspection report. It\u2019s clearly cosmetic. No, no, a thousand times no!<\/span><\/p>\n![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2019\/02\/home-inspection-before-closing-person.jpg\")
<\/a>Tip #5: Put the cost of repairs in perspective for the buyer.<\/h2>\n
Keep it rational, not emotional, and you\u2019ll get through the inspection pomp and circumstance<\/h3>\n