It is likely the biggest purchase you will make in your life. You are buying a home. Whether you are a first-time homebuyer, or you are working on closing on your sixth home, the process can still be fraught with surprises and unexpected challenges.
Indeed, we at Alpha Building Inspections consistently have clients who confide to us that the home buying process can be one headache after another. When talking to those clients, our advice is always the same: With closing on a home, the motto should be always “expect the unexpected.”
When a particular jarring surprise comes your way – like the mortgage company did not come through with the documents it said it would complete a week ago, or the closing date gets moved at the 11th hour – just take a deep breath and count to 10 before reacting. Most problems leading up to closing are not dealbreakers but are merely nuisance fires that you need to put out. Stay calm, fix the issue, and forge ahead.
Don’t Be Too Reluctant to Negotiate
With that advice in mind, we thought we would take this opportunity to give you a few tips on how to negotiate a home purchase once the home inspection is complete.
Given the size of the purchase, negotiations between buyer and seller for a home can be a little more like walking on eggshells. If you really want the transaction to go through, whichever side you are on, you will instinctively be extra careful in asking for concessions. Yet, the communication back and forth can be important.
We have seen that the biggest problem, for first-time homebuyers, in particular, is the assumption that a real estate broker, or attorney, will come up with all of the issues that need to be negotiated. That is, unfortunately, not always the case. The broker and attorney involved in the transaction have other work, and so your home is not always top of mind.
That means that you need to make sure you mention the things that you want to see at closing. Accordingly, the following are ten tips to help you negotiate repairs following your home inspection as you march towards closing.
If, after reading this article, you want more information for a home inspection in NH, then we welcome you to contact us today at Alpha Building Inspections, the home inspection of NH experts. Just call 603-816-1014, or you can request a quote anytime, day or night, by contacting us online.
1. Don’t Get Bogged Down on the Small Stuff
It is vital that you as a buyer prioritize the repairs you seek. If, after a home inspection, you demand that everything gets fixed to your satisfaction, that may scare your seller away. Be reasonable about repairs. Focus on the major things that must be done – a non-functioning HVAC system, for example – and make less of a fuss about cosmetic issues, like a scratch on the floor.
2. Check Everything
A common mistake is to forget to check the air conditioning system when it is wintertime. Be sure that you have checked everything before signing on the dotted line. The professionals at Alpha Building Inspections understand that principle.
3. Request Credit, Rather than Repair
Sellers often are ready to move on to their next home, and they may not be diligent in fixing requested repairs. An option, then, is to ask for a credit on the purchase price, rather than a repair, so you can fix it yourself.
4. Be Market Savvy
Work with your realtor to know whether you, as the buyer, have leverage in a buyer’s market, or whether it is a seller’s market. If it is a seller’s market, you need to be less picky on repairs (and only focus on major items) because the seller may easily find a different, more easy-going buyer.
5. Take a Breath Before Deciding
Even if you absolutely love a house, be careful not to buy with rose-colored glasses on. If a home inspection turns up major problems, and the seller is not willing to fix them or even give credit, then you may not want that house.
6. Negotiate with Closing Costs
Some first-time homebuyers are surprised to find out that they must pay closing costs on top of the purchase price. One way to negotiate is to use the closing costs to your advantage. If you need a repair and the seller is unwilling to make a change, you may at least get the seller to agree to pay all or some of the closing costs.
7. Home Warranty
While an HVAC system may pass a home inspection, it does happen that a system fails right after you close. To avoid getting hit with a huge expense right away, ask for a home warranty from the seller. It is a low-cost way to give everyone peace of mind.
8. Getting out of Your Lease
Another negotiation device can be the timing of closing. If a seller is hot to close, but you still have a few months on your apartment lease, the seller may be incentivized to give you a credit to cover the amount it would cost for you to break your lease early.
As noted above, do not be afraid to ask for something in a negotiation. The worst thing that could happen is that the seller says “no.” If there is a particular fixture or piece of furniture that just fits perfectly in the house you are buying, then you could ask for the seller to leave those behind.
10. Price or Loan Points
After a home inspection, you are likely focused on negotiating the purchase price of the home. But, there is also an option for the seller to “pay points” on your mortgage – which reduces the interest on your mortgage – as a tax-deductible expense.
Call Alpha Building Inspections For Your Home Inspection.
At Alpha Building Inspections, we understand how important it is that you get the most out of the purchase of your home. We also know that you need to know everything about your home before buying it. That is where our expertise comes into play. We do home inspections throughout NH.
Once an Alpha inspection is concluded, you will receive an accurate, easy-to-read, professional inspection report that outlines our findings and recommendations. With our reports, we include digital photographs to document property deficiencies, when necessary.
To learn more about how we can provide a professional inspection of your home, please contact us at 603-816-1014 or request a quote anytime by contacting us online. Contact us today. We know that you will be impressed with our honesty, integrity, and professionalism.