This is not our first discussion of home inspection — I know.I wrote 5 Reasons to Wait for Negotiations to Finish Home Inspection To convey a strategy that I personally have had a lot of success in the last three years. I think it’s much easier to negotiate once you’ve been inspected, it doesn’t recommend paying the buyer until they sign a binding contract. Some people disagreed, but hopefully this update will clarify my position.
With an inspection at hand, you actually know the state of the property and the functioning or malfunctioning of the major system. In my opinion, this is the only reasonable time to negotiate. If you try to negotiate at other times, you are doing so from an emotional and unknown point.
1. Real estate is a human business.
I believe that people are always the first thing to do. That said, asking for inspection should not offend the seller or be considered rude to the seller. It is a buyer’s right, and I think it should be exercised by all buyers if circumstances permit.
It is not malicious or unethical for the buyer to request an inspection and to correct what has returned to the inspection, especially if the seller is seeking market value. ..
If the seller does not want to allow the inspection, they should not simply accept the contingent offer of the inspection.
2. You need to know what to expect.
Inspections allow buyers to identify current or potential problems with their property and provide a great opportunity for buyers to know exactly what they are working on.
If inspection reveals major issues, especially structure, safety, or major systems, we recommend that you ask the buyer to fix those issues in some way before closing. However, each buyer is different and has different priorities. I encourage buyers to negotiate only what is most important to them.
3. Time is important.
This applies to almost all real estate contracts. Neither the buyer nor the seller should aim to extend any part of the process, even if not explicitly stated in the contract.
If you are a buyer, do not cross the inspection and resolution timeline. If there are compelling circumstances, or if an expert needs to investigate a property issue, make sure the seller is on the extension and maintain open communication throughout the process. If the seller does not want to allow such an extension, they can simply refuse it or terminate the contract.
How this actually works
I have been investing for almost 3 years now and currently own 38 doors. I also flipped more than a dozen and became a buyer and seller in many transactions. I know my success so far is somewhat limited, and although I’m just getting started, I’ve been both a seller and a buyer in multiple situations, both in MLS and off-market.
I never intended to sign a contract. I have never delayed the closing of the store. The inspection period or resolution period that the seller and I have agreed to has never passed. I have never offered a property that I did not intend to buy.
I have signed all but one contract in almost three years. The seller chose to cancel the contract and was willing to return me serious money after two different Foundation experts confirmed that the property required more than $ 44,000 in work. I was the fourth buyer to offer this house and the fourth buyer to request the same repairs.The seller didn’t try to help at all, And while the house is still on the market, its price will probably not be valued. I am grateful that I did not take over the problem.
We believe it is as good as our words, and reputation is absolutely everything. When I request an inspection, I treat the seller with respect by proceeding with the due diligence process as quickly as possible (and always within an agreed timeline). I always give sellers choices on how to work together to fix a problem and solve it. This will close me and allow everyone to move forward.
The best concession I’ve negotiated so far was $ 12,000, which was 10 units of real estate that required hundreds of thousands of dollars worth of work. The average concession for a single-family home I bought is $ 2,500. In each case, the seller is the person who provided the amount.
Every transaction I implemented this strategy would happily leave me and the seller from closing on time, so I would call it mutually beneficial. This strategy is not about using someone.