Negotiating the purchase

Requesting repairs

Once you have decided what you need to have fixed in order to make the purchase, your real estate consultant will convey your requests to the sellers. Options for reaching agreement include accepting everything as they are, having the seller make the repairs before close of escrow, reducing the sales price to cover the cost of repairs, and requesting a cash repair allowance so you can make the repairs yourself.

Once you get to the point of negotiating repairs, the tension can run a little high; don’t let a $300 hot water heater blow a $400,000 deal.

You don’t want the give the seller the feeling that it will be easier to find another buyer than reach agreement with you.

New Houses Need Inspections Too

A final note on inspections is New Houses need inspections too. It is not recommended you neglect the inspection just because you’re buying a brand-new home.

Flaws in new construction can be even harder to spot than in older homes because their symptoms haven’t had a chance to show up.

If you are buying a new home, definitely find an inspector that specializes in new construction. If the home is being constructed, and you have the budget to have your inspector visit the site during the construction process before everything is sealed up you could identify issues early on.

Other Inspections

Other inspections to consider would be roof, chimney, well and water tests (if the home has a well, its condition and the condition of the water are very important), septic systems (again if there is one).

I always recommend a home warranty and usually the seller will pay for the first year.

Cost of Inspections

Final word on the cost of inspections. If after reviewing the inspection reports you decide the home has too many costly issues to deal with you may decide to walk away from the purchase.

The home is most likely the largest investment you will ever make and the cost (loss of money) of the inspections is minor compared to the money pit you walk away from.

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