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The Home Inspection Negotiations

If you’ve purchased a home before, you know that making and having your offer accepted is the easy part. You are far from the finish line once both parties have agreed on a price. Those who are experienced in today’s real estate market, like our brokers at Duke Warner Realty, know that nothing is final until money has changed hands, all paperwork has been signed and the keys are in the new owner’s hands. That means inspections must be passed, and negotiations and agreements must be made. The home inspection can either help or hurt the process and the price of a home, and it can become a big negotiating point for both sides. For new home buyers or sellers, knowing what to expect with the inspection process is helpful and we’re always here to help if you have questions. If you are buying or selling real estate in Central Oregon, you may want to consider the following pointers before you list or make an offer.

Common Processes

Most homes go through some sort of negotiation after the inspection has been completed. There’s no reason to feel bad about this; few homes are perfect. Negotiating after an inspection can either be one of the most stressful parts of buying or selling a home, or it can be as easy as you make it. Moving forward with the final findings on the inspector’s report is the key to the process. Take the inspection for what it is and work off the report to get things organized and taken care of as quickly as possible.

Preparation

Sometimes you can save yourself the headache of a bad inspection, by doing some of the obvious work before your property is listed. It’s important to take care of the issues that you know your home has, ideally prior to listing it because whether you do it before or after the inspection, you will need to get it done. Having one less item on the report will benefit you with negotiating. It will also go a long way to be honest with potential buyers. It’s what you’ll want in the house hunt as well. If you take the time and money to fix the small things in advance, you will reduce the stress on yourself during the selling process. Some problems while not major, could cost you a percentage of your selling price, simply because it was left to be discovered by an inspector.

Buying

We’d all love to have every home appear like new, but chances are, this is never going to happen. An inspection should give the buyer a chance to renegotiate for major things, like electrical or plumbing issues, or problems with the roof or foundation. An inspection should not be used by the potential buyer to get a lower price on a property. Homes are lived in, and they do not come brand new. Keep in mind that home inspections are used to find potentially major defects in a property, defects that could cause a buyer not to consider the property. In most cases buyers and sellers can reach an agreement and repair the necessary items before the sale is finalized. Sometimes the price is changed to account for the cost of certain repairs, so again, it is important to fix as many of the issues you know of, prior to listing.

Positive outcomes

If you find something on a listed property as a seller that the buyer is pushing to be fixed, it’s best to offer a price reduction or closing cost credit, which would credit the buyer the money it should cost for the repair. Sometimes if a potential buyer is asking for repairs, they may have opinions on the way they’d like it to be fixed, so it’s best to credit them for the repairs in the price, and have them fix it on their own, once the property is theirs. This eliminates the chance of them not being satisfied with the work while you still own the home. Generally speaking, most people see that kind of offer as a positive outcome when negotiating. There is always a lot to think about when it comes to owning a property. If you are interested in real estate in Oregon, please give us a call to set-up an appointment with a well-educated and friendly broker. Call 541-382-8262 or email our office at info@dukewarner.com.