Negotiating Repairs After Home Inspection

Identifying Problems Found During Inspection

A home inspection assesses the condition of a property and its general structure, like the foundation, roof, framing, plumbing, electrical, HVAC, and more. Common issues found during inspections include discovering mold, termites and pests, broken windows or doors, or foundation cracks. Focus on major defects instead of smaller ones, and consider taking monetary credit rather than letting the seller oversee work.

When presenting what you want regarding post-inspection repair requests from sellers, be specific about what you want by providing supporting documents validating the reason for repair. Focus on getting big-ticket serious issues rectified during negotiations rather than trying to make everything perfect with every little issue called out on the home inspection report.

To learn more about how home inspections play into doing your due diligence, read our article What Does "Doing Your Due Diligence Mean?"

Prioritizing Issues

After the home inspection report has been received by the buyer, there are a few things to consider before negotiation repairs.

1. Market conditions: whether it’s a seller’s or a buyer’s market

2. Price point of the house: what has already been discounted knowing it needs work

3. How the house was presented in MLS listing sheets

4. Seller’s statement of property condition: did they state it was perfect or that it needed work

5. Cost of repair

When negotiating repairs after a home inspection, it is possible to request a price reduction instead of repairs. This can be more difficult than asking for repairs to be made or for a credit towards closing costs. Take into account the market conditions and the price point of the house when making this request.

It is important to remember that the purpose of the home inspection is to disclose any issues that could exist with the house. If you have a contract that allows you to make repair requests, then you can use this to negotiate price reductions.

Take into account the gravity of the defects found in the inspection report when requesting price reductions or credits towards closing costs. Don’t think you need to “win” but instead focus on compromise where everyone will be happy. Be reasonable when making requests during negotiation process. Focus on important items that should be fixed rather than little nuisance issues that cost little or no money fix.

Don’t lose sight of your home inspection contingency date in order to protect your earnest money deposit by completing and submitting your repair request promptly. If you are unsure about where an earnest money deposit goes, or why they're important, read Understanding Earnest Money Deposits.

Initial Negotiations With the Seller

There are several ways to present repairs when negotiating with sellers for repairs post-inspection: 

1. Ask for seller to make inspection repairs item before closing

2. Ask for price reduction so you can do work after closing

3. Escrow money for repairs after you close out of sellers proceeds.

Be aware of your local real estate market if you plan to negotiate after a home inspection. If you are looking in a seller’s market then you will be able to ask for fewer repairs. The seller is under no obligation to make any repairs but most sellers do offer some form of assistance, whether it be actual repairs or financial compensation.

Opting For Professional Repairs

When negotiating repairs on a home inspection report, determine what you would like the seller to repair and which items are most important. Get a quote for repairs from a general contractor and decide if you’d prefer money or repairs.

The cost of repairs should be weighed against the amount of money you are willing to invest in the property. Consider the timeframe for completing the repairs and the impact it will have on your move-in date.

Communicating Effectively With the Seller

Requesting Documentation

You'll need to have all the necessary documentation to back up your requests. This includes any relevant quotes or estimates from contractors or other professionals regarding the repair work that needs to be done. Try to keep copies of the home inspection report and any other relevant documents related to the home and its condition. Having the proper documentation is essential for making sure your requests are taken seriously. Sellers will be more likely to take your repair requests seriously if you come to the negotiating table with a solid foundation of facts and figures. Knowing the average cost of repairs in your area will help you make more informed requests and ensure the sellers are not taking advantage of the situation.

Making Reasonable Requests

Be flexible, reasonable, and polite when making requests. It is unlikely that the seller will be willing to negotiate if you come across as confrontational or unwilling to compromise. Focus on the big-ticket items such as structural defects, major plumbing or electrical problems, and any health or safety hazards. These items will have the most impact on the value of the home, so the seller should be more motivated to repair them.

Discuss all available options, even if they are slightly more “creative.” This includes discussing potential repairs, credits toward closing costs, or price reductions.

It is also important to consider the local market when making requests. In a buyer’s market, the buyer may have more leverage to make requests than in a seller’s market. Knowing this can help you make more informed decisions about what repairs to request.

Reaching an Agreement

Once you have discussed all available options with the seller, it is time to reach an agreement. Be clear about what you want and make sure that all the paperwork is in order so that all parties can be in agreement. This includes any repair requests, credits, or price reductions that were negotiated. After getting everything signed, the sale can move forward to closing.

Asking for Repairs to be Completed After Closing

When negotiating repairs after a home inspection, you may ask for repairs to be completed after closing. This is a good option if the seller is unwilling to make repairs or provide financial compensation. It is important to be specific about what you want and provide supporting documents validating why something needs fixing.

Knowing Your Rights During Negotiations

Understanding the Home Inspection Report

Once the home inspection report has been received, it is important to thoroughly review it in order to understand any potential issues that may have been flagged. The home inspection report should provide a detailed overview of the condition of the property, as well as any potential issues that need to be addressed.

It is important to understand the significance of any potential issues that were flagged during the home inspection. Make sure to ask questions and research any potential issues in order to understand the full scope of the problem. 

Reviewing the Seller’s Disclosure Statement

The seller’s disclosure statement outlines any known issues with the property that the seller is aware of. You want to double check to ensure that there aren’t issues that may not have been flagged during the home inspection or that the seller is not withholding information from you. This can help you determine how to proceed with the negotiation process.

Hiring an Attorney

When it comes to negotiating after a home inspection, it is important to have an advocate on your side. Hiring an attorney can help ensure that the negotiation process is conducted in a legal and professional manner. The attorney can also help you understand your rights as a homeowner and ensure that you stay within the boundaries of the law.

An attorney can also help you understand the legal implications of any potential repairs that may be required. Make sure to discuss any potential repairs with your attorney in order to ensure that they are legally compliant. This can help you avoid any potential legal issues in the future.

Having an attorney on your side can also help ensure that the negotiation process is conducted in a professional manner. An attorney can provide valuable advice and guidance throughout the negotiation process, helping you make informed decisions.

Final Tips

It is also important to have a budget in mind for the house in general. Remember that you will also have other expenses associated with the home purchase, such as closing costs and escrow fees. Make sure to factor these into your budget and have a realistic expectation of what repairs you can afford.

When negotiating repairs after a home inspection, it is important to stay organized. Make sure to document all of your requests in writing and provide evidence to back up your claims. This will ensure that the seller understands exactly what you are asking for and can help you make sure that all of your requests are met.

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