Negotiating Repairs When Buying a Home
Posted Tuesday, February 18, 2014
Inspections can turn up repair issues during the home buying process that can increase your cash outlay as a buyer. Problems with appliances, plumbing, and HVAC are just a few issues that can crop up. If you find yourself experiencing repair sticker shock, keep these thoughts in mind:
The choice lies with you: As the buyer, you get to decide whether you want to proceed with the purchase of the home or not. You are not at the mercy of the seller’s demands. If you can’t reach an agreement, then you can opt out of the situation, as long as you’ve included a home inspection contingency in your contract.
The first estimate you get on the potential repair cost may not be the lowest or most accurate: Before you decide to withdraw your offer on the home when the repair estimate comes back beyond your budget, find out if there is a way to get a better price on the repair. Always go with a reputable company, but talk to a few specialists to see if there is a less expensive way to address the problem. Maybe the heating system can be repaired instead of completely replaced. Perhaps if you have the work done in the summer months, your vendor will cut you a break on the pricing because it is during his off-season. Think creatively!
Counter-offer: The seller may have low-balled what he is willing to toss into the pot on the theory that you would be counter-offering.
Remember, no home is going to be absolutely perfect. But doing what you can to negotiate the best situation – with repair professionals and with the seller – can salvage a deal on a home that at first seemed to be going south.
Whether you need help finding a home to buy or negotiating the deal, I can help. Give me a call today.