The Battle over the Inspection Notice ~ Buyers and Sellers Negotiate the Fixes.
By Betty Stielow
Negotiating the purchase of your life takes all forms, from the purchase price, to the inventory that is included or excluded in the sale to the Inspection Notice. Of course the first negotiation is the purchase price of your new home… and in this economy; you might have negotiated a super deal taking the seller to his rock bottom price. Buyers who are able to purchase in this market, need to feel they are getting a super deal and the seller must feel he hasn’t been fleeced out of his home too so it is a delicate dance that happens…one of give and take.
One of the conditions in purchasing the property is the property’s condition as correcting defects, safety items which need attention can be costly to the seller which equates to taking more money from his profit. After taking a look at the Seller’s Property Disclosure you should be able to identify potential problems with the home. It’s always a good idea to have someone inspect your home for these potential problems and give you their professional opinion. If after the inspection you and your agent find it necessary to prepare the Inspection Notice…this notice identifies potential health and safety problems and not cosmetic repairs or defects you would like repaired or replaced before you purchase…but real safety and health issues that should be addressed by either party. Whatever the case might be, you and your Buyer’s Agent / Transaction Agent will prepare the notice that you will sign and present to the seller.
Once the seller has seen your concerns the seller has three options…one to say, “Okay, I’ll fix everything”, two, “I won’t fix anything take it or leave it” and three, “Here’s an offer of some money to do the repairs yourself”. It is at this point that the buyer and seller can negotiate again on the Inspection Notice. Sellers should review carefully the Inspector’s report if the buyers make it available to them. In Colorado the buyer is not required to present to the seller a copy of the report but a copy of the report would be good support for the buyer’s request for items the buyer feels need to be repaired. Again the dance of negotiating will take place with some buyers walking away, some sellers offering to fix certain items or an offer of money to offset the expense of repairing the problems. Buyers should take time to prioritize their request for repairs and sellers should carefully consider if they will get a better deal if they walk away from this transaction and wait for the next offer to come in. Sellers need to also consider the market, the time their home has been on the market and the amount of activity their property has experienced lately. One last question for you…are there many interested parties from whom the seller could receive a better offer if this negotiation were to fail? Buyers should also consider the market conditions and how easy or difficult it will be to find another comparable property you like as much or more. And so on goes the rhythm of the music or real estate…happy house hunting!!