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January 26, 2017

Dealing with a Property Inspection

These days a property inspection can be a very tricky obstacle to overcome as a buyer or seller when trying to complete a sale. A lot of factors come into play when determining what is an issue or not.

Sellers

It is important to set expectations from the start as a seller what you will not allow to become an issue after the inspection has been completed. For instance, if you have a roof that is in need of repair or replacement, and you feel that you have priced the home accordingly or have negotiated a price that reflects its condition, make that very clear to the buyer. Setting this expectation before the inspection is performed will mitigate potential problems arising from this item.

If you have an older home in original or older condition, the buyer should understand they are buying an older home in a certain condition. This would be classified as a used home and the buyer should expect to find issues with the home that need to be addressed. This would exclude in most cases any major issues that could arise such as structural or hidden issues that both parties were not expecting to find.

As a seller, sometimes you will find yourself in a renegotiation with the buyer. This may be a reasonable situation or it may not be. Some buyers like to use the inspection to renegotiate and each case should be looked at to decide what is important to you to get the deal done. It is best to put yourself in the buyers shoes and see it from their perspective. If you feel you are being taken advantage of and think the best avenue to take is to reject any or all of the buyers requests, then do so knowing that the sale may not complete. If you feel you should compensate the buyer or remedy any concerns to complete the sale if reasonable, then go ahead and do it.

Buyers

First off, remember you are buying a re-sale home that will come in almost all cases without warranty. This excludes of course newly built homes. Look at what you have negotiated in terms of price and set yourself up for what you will be willing to accept in terms or work to be done to the property before you perform the inspection.

If you approach the seller with a list of requests to be repaired or replaced, or an amount to be taken off the price to compensate you, be reasonable. The situation can get emotional quickly and when it does, it is hard to make anything happen. Be realistic. Put yourself in the sellers shoes and then present your request to yourself and see how you feel.

Hire a inspector that is licensed and that will provide a digital report. If you need to have anything addressed it is a lot easier to get a resolution when you can present the issues with pictures and descriptions in a report that can be emailed to the seller. Nothing makes it more difficult than a hand written report without photos.

Summary

Nothing is set in stone until conditions are removed and the sale becomes complete. Both buyers and sellers need to be aware that they are still working towards a common goal of completing the sale during the conditional period. Set realistic expectations and you will set yourself up for success.