Putting in an offer on a new home and getting it accepted is an exciting moment for any home buyer. But before you get the keys, you’re going to have to go through a few other steps in the home buying process, including one of the most important steps: the home inspection. This is your chance to walk through the house with a professional and identify any issues with the property that you want the seller to take care of. Most buyers do end up needing to negotiate repairs after a home inspection, but look at it as a good thing—it’s much better to have the seller handle necessary repairs than be on the line for them once the home is in your name.
Common Home Inspection Problems
How you negotiate repairs after a home inspection depends on what you find. Your home inspector will be your guide—and your eyes—during the inspection process, and will be able to alert you of anything that may be a cause for negotiations.
Here are nine of the most common issues you may come across during the home inspection:
- Plumbing issues
Leaking faucets, inadequate water pressure, drainage problems.
- Mold and mildew
In bathrooms, basements, and anywhere else water might congregate.
- Improper grading
Water in the basement suggests that the home might be improperly graded, i.e. due to erosion or other issues rain and other moisture sources are able to seep into the property’s foundation.
- Faulty electrical wiring
Broken outlets, open junction boxes, circuit overloads.
- Roof issues
Missing or deteriorated shingles, missing or deteriorated flashings (the material the covers roof joints), issues with the bricks or other materials surrounding the chimney.
- Foundation issues
Cracks, chips, slopes, other types of concrete degradations.
- Appliance issues
Improperly functioning kitchen appliances, smoke and/or carbon monoxide detectors, and other home appliances.
- Heating and cooling inefficiencies
Improper ventilation, improper heat distribution, dirty heating or boiling systems.
- Window and door issues
Sticking windows and doors, cracks, draft leaks.
Most houses won’t pass a home inspection without presenting with at least a couple issues. Most of the time these issues will be relatively minor, since otherwise the seller likely would have known about it before putting the home on the market.
It’s important to note that not all issues warrant negotiations. When you negotiate repairs after a home inspection your goal is to get any major problems taken care of—particularly things that might have had an impact on your decision to purchase the home or the offer that you made. It is not however an opportunity to make a wish list of requests that the seller has to meet. Remember, you can still back out of the sale at this point, so if the issues are too overwhelming (for example, if there are problems with the foundation that will require tens of thousands of dollars’ worth of repair costs) it may be something worth considering.
Negotiating Repairs After a Home Inspection
The home inspector’s job is to give you a report of any issues—both big and small—that are identified in the home. From there, your realtor will work with you to determine what’s reasonable to negotiate over and how to go about the process.
To start, you and your realtor are going to want to choose what fixes are most important to you. You can certainly request minor fixes for things like cracked tiles or broken outlets, but be sure to hone in on what your biggest concerns are before handing over any requests to the seller.
Once you have narrowed down your list of requests, your realtor will present them to the seller’s agent. There are various types of requests you might make in response to a home inspection report, including:
- Asking the seller to fix an issue before closing
This is a common ask, and shifts the responsibility for repairs over to the seller. It’s also usually quite easy to accommodate, at least insofar as the smaller repairs. Keep in mind however that sellers might not be motivated to pay for top quality repairs, so you may be better off going the next route.
- Asking for price compensation
In some cases a buyer may be better off requesting a reduction in the home’s sale price to accommodate for the cost of repairs. For example, $10,000 off the purchase price if a buyer knows they will need to make immediate structural repairs. This is another common way to go, though sellers and buyers often have different ideas about what a fair price reduction is for repairs. Do your research so that you have a good idea of what a certain fix will cost and you can ask for an appropriate amount.
- Asking for alternate compensation
You may choose to barter as a way to negotiate repairs after a home inspection—for example, asking the seller to leave behind some furniture or appliances that they were planning to take to account for the added expense of repairs. If you’re going to barter, make sure to ask for items that represent real value to you, since you’re essentially taking them in lieu of cash.
- Asking for a home warranty
Many buyers choose to ask the seller to purchase a home warranty to cover their first year of residency, especially if the home has outdated appliances that aren’t quite on the fritz but may be soon. Home warranties cover most appliances and systems within a house, including plumbing system, electrical systems, and heating and cooling systems. They don’t cover things like garages, non-plumbing related roof problems, and septic systems. If you think your major needs can be met by a home warranty, then it’s always worth asking the seller to provide one.
Additional Tips
The post-home inspection negotiation process can be a fraught time for both buyers and sellers. Nobody wants the sale to fall through though, so it’s important to approach the negotiation process with an open mind and a willingness to compromise. You should never back down from something that’s really major—particularly if it’s something the seller must have known about before listing the home and was thus required to disclose—but you also don’t want to be unreasonable.
Here is a bit of additional advice that you can use as you negotiate:
- Don’t make assumptions
As a general rule of thumb, don’t go into negotiations assuming that you’re going to get everything you want. While you certainly might, it’s always possible the seller won’t be willing to comply with requests. Know exactly what your deal breakers are so that if you don’t get what you’re asking for you know when to walk away.
- Think long term
If you’re planning to do a kitchen renovation in the next five years, then it probably isn’t worth it to go back and forth about an outdated dishwasher or wonky cabinetry. While all buyers would like their home to feel like new construction when they move in, some issues are to be expected. If it’s something you intend to take care of in the near future anyway, just plan to live with it for a little bit until you do.
Most of the time, a home inspection and the negotiations that follow go quite smoothly. Rely on the expertise of your realtor to guide you through the process, and keep your eye on the prize: finally getting to move in to your new home.
