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INVESTORS: DON’T NEGOTIATE UNTIL YOU KNOW THE HOME’S CONDITION

Friday, January 6, 2023   /   by Laura Larson

INVESTORS: DON’T NEGOTIATE UNTIL YOU KNOW THE HOME’S CONDITION

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Investors: Wait to negotiate until you understand the condition of the house. We know that this isn't the first time we've talked about home inspections. In order to share a tactic that we personally have used successfully over the past three years, I authored 5 Reasons To Wait To Negotiate Until After The Home Inspection. When you have an inspection, which we urge a buyer to wait to pay for until they have a binding contract, we find that negotiating is lot simpler. Although there were some who disagreed, we trust that this update will make our viewpoint clear.

You can truly determine the state of the property and the efficiency—or lack thereof—of the main systems with the help of an examination. We believe that the only moment to bargain is right now. Any other time you try to bargain, you are working from a place of uncertainty and emotion.

1. It is a people business, real estate.
We constantly put the needs of people first. Nevertheless, requesting an inspection shouldn't be seen as disrespectful or as being offensive to a seller in any manner. It is a buyer's right, one that, in our opinion, all buyers should exercise when circumstances permit.

In particular, when it is a property that the seller is seeking market value for, it is not malevolent or unethical for a buyer to request an inspection and then ask for the things that are found on that inspection to be fixed.

Sellers should simply reject offers with inspection conditions if they do not want to permit an examination.

2. You ought to be prepared.
An inspection is a wonderful opportunity to make sure the buyer is aware of what they are getting into and enables them to see what problems the property has now or might have in the future.

We urge a buyer to request that any significant issues be resolved before closing if the inspection reveals them, particularly if they are structural, safety, or with the major systems. Having said that, every customer is unique and has different objectives. We advise consumers to only haggle over issues that are extremely important to them.

3. The clock is ticking.
Almost all real estate contracts reflect this. Both the buyer and the seller should refrain from trying to prolong any stage of the transaction, even if it isn't specified directly in a contract.

Do not go above your inspection and resolution timelines if you are a buyer. Make sure the seller is on board with an extension in exceptional circumstances or when a professional is required to evaluate a problem on a property. Keep lines of communication open at all times. A seller has the option to reject the request or end the agreement if they are unwilling to permit such an extension.