If you’re a first-time home buyer, you’ve probably heard about the negotiations, or “bidding wars,” that happen at the beginning of the purchase process. Fewer people, however, are aware of the negotiations that follow the signed purchase contract.

Although home inspections have become less popular over the last few years, they’re still commonplace in the real estate industry. When those inspections uncover one or more problems with the home, buyers and sellers have to agree on who will cover the costs. Here are four tips to help you come out on top when negotiating repairs after home inspection.

Ask for a credit.

Let’s be real, the sellers are on their way out both physically and mentally. If it’s looking like you’re going to complete the purchase and close, they’re probably more focused on packing than they are fixing.

If sellers aren’t amenable to making home inspection repairs—or if those repairs weren’t made to your satisfaction—you could go through the hassle of negotiating a lower purchase price, or you could ask for a closing credit. A closing credit is a way to decrease your upfront, out-of-pocket expenses. That credit reduces your costs, meaning you’ll have more cash on hand to make those repairs yourself. 

A closing credit is a way to decrease your upfront, out-of-pocket expenses.

Think “big picture.” 

Picture this. You’ve toured the home, you’ve agreed on a purchase price, and you’re putting together plans for your future remodel—but the home inspection report found signs of water damage under the sink. And on top of that, the rotted wood extends well beyond the cabinet under the sink. If you could negotiate those repairs now, why wouldn’t you?

When you’re working through home inspection negotiations, think about the future of your new home and remember that a seller credit toward those repairs could offset not only your closing costs, but your eventual renovation costs as well.

Don’t show your hand.

If you’ve got a home inspection coming up, find out if the seller’s agent will be walking the property with you, your agent, and the home inspector. If so, you might want to hide your true excitement about the house. Showing satisfaction with the current state of the home in front of the seller’s agent could hurt your chances of negotiating home inspection repairs later on.

On the other side of things, if the seller’s agent senses disapproval from you during the inspection, they might mention that to the sellers—helping build your case to get any repairs completed to make sure the sale goes through.

Be ready for anything. 

There’s a saying when it comes to buying a home: “It’s not over ‘till it’s over.” That means, until you sign the closing documents and have the keys in hand, anything could happen. The initial contract is just that—initial. With all the people involved, the unknown variables, and the state of the market, there’s a non-zero chance that your dream home could disappear entirely.

Consider this: If your home inspection results are favorable, there’s nothing to negotiate, so don’t try to fight for a lower price or closing credits. If the home inspection results turn up something negative, you may be better off negotiating credits or repairs instead of a lower purchase price—especially if the appraisal came back with a fair value.

Pre-purchase negotiations are tough, and home inspection negotiations can be even tougher. Keep these tips in mind or ask your team—lender and real estate professional—for more advice to make sure you’re prepared for the purchase process.

Although home inspections have become less popular over the last few years, they’re still commonplace in the real estate industry.

The post How to Negotiate Post-Home Inspection Repairs Like a Pro appeared first on Cardinal Financial.

If you’re a first-time home buyer, you’ve probably heard of the negotiations that come at the beginning of the home buying process—when you’re negotiating the purchase price of the home. But, many first-time buyers are not aware that negotiations don’t stop there. Oftentimes, they continue well into escrow, after you’ve already drafted and signed the initial contract. It’s common for buyers to negotiate all kinds of details related to their home purchase, especially who pays for what repairs after a home inspection. Did your home inspection reveal some issues that need to be repaired? We’ve got a few tips for navigating these tricky post-home inspection negotiations like a pro.

Ask for a credit

The sellers are on their way out, physically and mentally. If it’s looking like you’re going to close the deal and buy this home from them, they’re probably packing up their things and daydreaming of the next chapter of their lives. Making repairs on their “old” house probably isn’t high on their priority list. Even if you asked them to take care of the repairs themselves, they might not do as nice of a job as you’d like. At this point of post-home inspection negotiations, you might want to ask the sellers for a credit at closing. This means the sellers agree to give you a certain dollar amount at the time of closing that you, the buyer, can use toward repairs. And, if you get the credit, you won’t have to worry about going back and forth with the seller about whether the repairs were done to your liking—you can take care of them completely on your own.

Think about the big picture

Let’s say you’re thinking about the kitchen in your new home and you already know you’re going to renovate it someday. Why not now? Sure you could probably deal with the water damage behind the sink or the back burner of the stovetop that won’t stay lit, but if you can negotiate these repairs now, wouldn’t you do it? When you’re working through post-home inspection negotiations, consider the future of your new home, and remember that a seller credit toward these repairs could help offset the costs due at closing.

Don’t show your cards

If your home inspection is coming up, find out whether the seller’s agent will be walking the property with you, your agent, and the home inspector. If so, you might want to hide your true excitement about the house. Showing satisfaction with the current state of the home in front of the seller’s agent could hurt your chances of negotiating those repairs later. If the seller’s agent can sense even the slightest disapproval from you during the home inspection, you’re building a case for yourself that the agent will probably mention to the sellers.

Be ready for anything

There’s a saying for home purchases: It’s not over till it’s over. That means until you sign the closing documents and have the keys in hand, anything could happen. Don’t sign the initial contract thinking that you’ll be able to negotiate the price of the home even lower after the inspection. With all the people involved, the unknown factors, and the competitive state of the market, there’s a good chance that glimmer of hope will fade quickly. Think about this: if your home inspection results are favorable, there’s nothing for you to negotiate. If you didn’t consider this possible outcome during the initial contract negotiations, you may have just lost out on big savings. Now don’t go and try to negotiate a new purchase price anyway—the sellers will likely turn away and find another buyer.

Negotiations are tough, and post-home inspection negotiations are not exempt! Keep in mind these helpful tips or ask your LO for advice and you’ll be more prepared for your home buying process.

The post How to Negotiate Post-Home Inspection Repairs like a Pro appeared first on Cardinal Financial.