If you plan to buy or sell a home, home inspection is one of the most essential steps. A home inspection thoroughly examines the property’s condition, structure, systems, and features. It can reveal any issues that need to be fixed before closing the deal, such as faulty wiring, plumbing leaks, roof damage, mold, termites, and more.

But what happens if the inspection report shows that the home needs repairs? How do you negotiate with the other party to get the best outcome for yourself? This blog post will share tips and strategies for negotiating repairs when buying or selling a home.

How to Negotiate Repairs as a Buyer

As a buyer, you want to ensure your home is safe, functional, and worth the price. You also like to avoid inheriting problems that will cost you money and hassle in the future. That’s why you should always hire a licensed and reputable home inspector to perform a detailed inspection of the property before you make an offer.

If the inspection report reveals any issues that need fixing, you have several options for negotiating repairs with the seller. Here are some of them:

Prioritize the most essential repairs and avoid cosmetic or minor ones.

Not all repairs are made equal. Some are more urgent and significant than others.

For example, structural defects, safety hazards, code violations, and major system failures are more severe than cosmetic issues like peeling paint, cracked tiles, or squeaky doors. You should focus on the repairs that affect the home’s value, functionality, and safety and not on the ones that are just aesthetic preferences or personal tastes. You want to avoid losing the deal over trivial matters or annoy the seller with too many requests.

Request a seller credit or a price reduction instead of requesting repairs.

Sometimes, it may be better to ask for financial compensation rather than having the seller fix the issues themselves. This way, you can have more control over the quality and timing of the repairs and choose your contractors and materials. You can also avoid delays or disputes arising from the seller’s craft or availability. To request a seller credit or a price reduction, you need to provide a written estimate from a licensed contractor on how much it will cost to fix the issues. Then, you can negotiate with the seller on how much they will pay or lower the price.

Use a contingency clause to protect yourself from backing out of the deal if the repairs are too costly.

A contingency clause in the purchase contract allows you to cancel the agreement without penalty if certain conditions are inadequate. One of these conditions is usually the satisfactory completion of the home inspection and repairs. If you find out that the home needs more repairs than you expected or can afford, or if the seller refuses to cooperate with your requests, you can use this clause to walk away from the deal and get your earnest money back.

How to Negotiate Repairs as a Seller

As a seller, you want to sell your home quickly and for top dollar. You like to avoid dealing with any hassles or expenses that will reduce your profit or delay your closing. That’s why you should always prepare your home for inspection and fix any obvious problems beforehand.

If the buyer’s inspection report still shows that your home needs repairs, you have several options for negotiate repairs with the buyer. Here are some of them:

Prepare your home for inspection and fix any obvious problems beforehand.

The best way to avoid any surprises or conflicts during the negotiation process is to ensure that your home is in good shape before listing it for sale. You should hire your home inspector to perform a pre-listing inspection of your property and identify any issues that need to be fixed. Then, you should repair or replace anything broken, damaged, leaking, or outdated. That will make your home more attractive and appealing to buyers, preventing them from asking for too many repairs or lowering their offer.

Respond to the buyer’s repair requests and offer alternatives or concessions.

You should respond promptly and professionally if the buyer still requests repairs after your pre-listing inspection and fixes. You don’t have to agree to everything they ask for, but you should be willing to compromise and find a middle ground. You can fix some or all of the issues yourself, offer a seller credit or a price reduction instead of doing the repairs, or propose other solutions to satisfy both parties. For example, you can deliver to pay for a home warranty that will cover any future repairs or maintenance costs for the buyer.

Avoid losing the deal or facing legal issues due to undisclosed defects or misrepresentation.

One of the worst things that can happen when selling your home is losing the deal or getting sued by the buyer because of undisclosed defects or misrepresentation. That can occur if you fail to disclose any known issues or defects with your home or lie or exaggerate about its condition or features. To avoid this, you should always be honest and transparent about your home’s history, condition, and features. You should also provide the buyer with relevant documents, such as repair receipts, permits, warranties, or inspection reports. That will build trust and credibility with the buyer and protect you from any legal liability or claims.