How to Navigate the Home Inspection as a Seller and Protect Your Net Proceeds
After the home inspection, buyers typically submit a repair request or request for credit covering items identified in the inspection report. How you respond can affect both your net proceeds and the likelihood of the sale closing.
Understanding Inspection Requests
Inspection requests range from legitimate to aggressive. A buyer requesting credit for a 15-year-old HVAC system is reasonable. A buyer submitting 40 line items including every minor maintenance observation in the inspection report is aggressive negotiating. Your response should be calibrated to the seriousness of the items and the strength of your position in the market.
Your Response Options
Agree to repair: You complete repairs using your own contractor before closing. Advantage: cost control. Risk: quality control and timeline make sure repairs are completed properly and with appropriate documentation.
Provide a credit at closing: Agree to a reduction in the sale price or a closing cost credit for a negotiated amount. Advantage: avoids the hassle of managing repairs. Ensure the credit amount is reasonable relative to actual repair costs.
Decline and hold firm: If you priced the home to reflect its condition, or if the items are minor, you may decline. In a seller's market, some sellers hold firm. But be prepared for the buyer to walk if the items are significant.
Counter-offer: Offer to address the most material items while declining or reducing credit for minor ones. This is the most common and productive approach.
Negotiating After Inspection: Best Practices
Respond to inspection requests promptly, delay means uncertainty, and give the buyer time to develop cold feet. Prioritize resolution of genuine safety and structural items, and push back on cosmetic or minor items that were visible to any buyer who toured the home. Keep the big picture in mind: the goal is to close the transaction, not to win every line item in the inspection negotiation.
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