Inspection Recommendations

This is the beginning of the negotiation of your inspection during the Due Diligence Period as noted in Paragraph 9A of the Purchase and Sale Agreement. This is a difficult process because you are finding out about inconvenient things that are wrong with your home at an inconvenient time. However, this process is easy, so don’t fret.

Please keep in mind that the buyer can ask you for any repair or concern to be fixed. You don’t

have to do it. And, the buyer has the right to terminate the contract at anytime up until the end of

the Due Diligence period.

Although we do not look at the inspection report with you in detail, we would like to offer you some options that work every time.

The 4 options that you have are:

1. Give money towards the buyer’s closing costs in lieu of repairs. This allows the Buyer to have the repairs completed to their standards/expectations and alleviates your responsibility of having to complete the repairs before closing.
2. Reduce the sales price. This is not very appealing to Buyers obtaining a loan because it neither gets the repair completed nor frees up cash after closing so they can have the repair completed themselves. However, if you have a cash Buyer this is sometimes the best option.
3. Make all or some of the repairs requested. IF your Buyer is not open to the idea of having to complete the repairs after closing, or if you feel more comfortable having the repairs completed yourself, this will be your best option.
4. Offer a Home Warranty to the Buyer in lieu of repairs. If you have already agreed to provide a home warranty or if you would like to offer a home warranty in lieu of repairs, you can use this as leverage during negotiations. For instance, if they want you to replace the water heater (most home warranties cover water heaters), you could simply state that should the water heater quit working, then the home warranty will take care of the replacement of the water heater. We use American Home Shield, and their number is 888-682.1043. The cost of a home warranty can vary, so it is best to state a limit on the home warranty. They usually do not exceed $600.00.

To Give Money in Lieu of Repairs: 

It is not necessary to get contractor bids yet; just take a stab at an acceptable price with your buyer. Cross out the repairs you won’t be completing and write under their requests on the amendment: “Seller to give $XXXX in lieu of repairs towards Buyer’s closing costs.”

To Reduce the Sales Price:

Cross out the repairs you won’t be completing and write under their requests on the amendment:

“Seller to reduce the purchase price to $XXXX in lieu of all repairs.”

****Both of the above suggestions help you reduce the liability that the buyer will re-inspect the

work and not like the repairs.

OR

To Make Repairs: 

If you decide to make some of the repairs, cross out the repairs that you do not want to make.

Remember, we have many recommended vendors who can perform the repairs or provide any other services you may need. Using the link provided in the email we sent you can be contacted by the vendor(s) specializing in the services you need.

****Be sure you have receipts for ALL repairs completed. They may be requested before closing.

Also, if the buyer is not satisfied with the repair, they can delay closing until they are satisfied or terminate the contract. Carefully read the Amendment to Request Repairs to be sure you are following EXACTLY what all parties agreed to.

ADDITIONAL STRATEGY

Cover Letter Explanation:

The goal of both you and the Buyer is to get your home sold, so remember that the Buyer may need you to explain some of your reasoning for repairing/not repairing the defective item(s) you are negotiating. Send a cover letter explaining your response to ease the Buyer and put everyone on the same page.

The Whole Inspection Report

Getting the whole report from the inspector has its pros and cons. When you get a report from the inspector and you gain new knowledge about your home, if you don’t sell your home to this Buyer, you have to either disclose this knowledge on a revised Seller’s Disclosure to future Buyers or you have to investigate it further to determine that the inspector was incorrect.

EXTRA STRATEGY HELP BEYOND OUR RECOMMENDATIONS: If you feel that you need help beyond our Recommendations that have helped the majority of our clients successfully sell their home when followed, we charge only $250.00 to strategize with you further about what can be done to make the deal work. Call us to hire us to help you do that. We will take a credit card to secure your appointment to strategize.