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Use Your Home Inspection to Get a Better Price (Buyers Edition)


05/06/2023


Are you a prospective home buyer? 77% of buyers get a home inspection and the National Association of Realtors (NAR) says they "are a critical part of the home buying and home selling process . . ." Most commonly, buyers exercise their inspection option to learn more about the property and to ensure that it reflects the value of what they have offered.


But the inspection can also be used for negotiationg leverage. Very rarely will an inspection turn up a thoroughly “clean” house. If an inspection reveals defects, buyers can then exercise their option to renegotiate the offer. According to an article published on Porch.com, 46% of buyers nationally used their home inspection report to negotiate a lower price, saving them an average of about $14,000!


All negotiations involve give and take. Based on the report, buyers and their agents should discuss the best way to revise the offer. You can start by getting a repair/replacement estimate of the noted defects. Experienced agents and inspectors may be able to provide some help to you here. Realizing that many sellers will not be willing to take a big hit, agents and buyers should discuss how much to revise the offer. The same study noted that 38% of buyers took their agent’s advice on the amount to offer.


Buyers and their agents should discuss the report completely to answer two questions:

1. Does the property still meet the needs and desires of the client?

2. Of the identified defects that potentially detract from the functionality of the house, which ones represent the best opportunities for renegotiation?


Remember: If you don’t ask, you will never know how much you could have saved!


To summarize: The inspection report is not an appraisal of value, nor does it make recommendations regarding the buying process. It simply describes the systems of the property and its functionality. Defects identified within the inspection report can provide the buyer with opportunities to negotiate a better deal.


Let me know how I can help you realize your dreams, Dave


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