We just had our home inspection, what’s next?
As long as you didn’t waive your inspection, which no Realtor I know would recommend, you will most likely have a home inspection before closing on your home. Depending on the results of the inspection, there are a few things that can be done post-inspection. If there were any big repairs found, your agent will have a conversation with you about what you can do next.
In general, you can do one of three things. One option is that you can request that the sellers pay for and repair anything found on the report. If you are getting a repair done, make sure the sellers put the warranty in the property’s name, not theirs. In case the warranty needs to be used, it will make your life much easier. Another option would be to negotiate the price. The sellers might say that they are unwilling to make repairs but will negotiate on price. The final option would be to walk away from the house. Depending on your contract, you might be able to get your deposit back due to the home inspection contingency clause. Both the seller’s agent and the seller will typically negotiate to avoid having to put the house back on the market.
Here are a few tips to remember when negotiating after inspection:
Focus on the big ticket items and don’t sweat the small stuff. If the inspection report comes back that the roof is leaking and you will need a new roof ASAP, that is a big expense. You and your agent will want to negotiate with the seller and seller’s agent.
Get quotes from a contractor. A contractor will be able to give you some ballpark numbers that may help you decide how/what you want to negotiate.
Be aware of the market. What’s happening in the real estate market will have a significant impact on what your negotiations will be like. If the market is anything like Spring 2022 (seller’s market) there will likely be very little negotiation. That’s because both the seller and their agent know that if you walk away from this house, they can easily find another buyer. If you’re lucky enough to buy during a buyer’s market, there most likely will be space to negotiate. During a buyer’s market, the seller and their agent realize that this might be the only offer they’ve gotten in a while and are willing to bend over backward to keep this deal alive.
Stay reasonable, don’t get overly emotional. It can be easy to let your emotions get the best of you after putting so much time and effort into a home. By this point in the deal, you’re likely picturing yourself and your future life in this house. It can be difficult, but it is important to keep your best poker face on during this part of the home-buying process.
