Wednesday, May 29, 2013

Sellers- Home Inspection gone Bad? Consider your options!

Most real estate meltdowns are usually the result of surprises. When your home has some minor imperfections you do not expect a major to do over a home inspection, but when major problems arise after a home inspection it can lead to a small dose of devastation. Trust me, I know the feeling- bad inspection results are scary because you do not know what a buyer's response will be and what you will have to shell out to make it right. Minimally you will end up having to make some repairs or renegotiate the price, but on occasion the worst can happen- a buyer will back out. Either way, the initial shock of a bad home inspection can create a lot of uncertainty.

Even if you are surprised by inspection results it is important to keep calm and quiet until the buyer has actually asked for specific repairs or a price reduction. Most buyers actually expect to put a little work not a home when they buy it, so they may not interpret the report as completely negative. You are best off to expect some kind of compromise that works for both of you.

When a homebuyer does ask for repairs, you can rest assured that the ball has somewhat been put back in your court. Before you agree to anything, get a few estimates on big ticket items from repair companies you know and trust. Multiple bids will give you stronger negotiating power to show that a repair may not be as costly as a buyer has estimated.

When a deal goes completely bad after a home inspection a seller may think that they will never sell, but it is important to remember that not every buyer is or expects the same from a home.  Some may be more willing to negotiate or make repairs.  Take a step back to assess your situation and consider your options.  You may want to consider reducing the asking price of your home based on anything major that needs to be done and the estimates you have received.  Within reason, a lower price could free up more money to buyers to make repairs themselves.  You would then want to disclose what has come up in the home inspection and possibly sell the home "as-is" which would make buyers aware that you have priced your home with the understanding that the lower price is indicative of the repairs that need to be made.  Another option is to hire a contractor to do the repairs, but remember to take the inconvenience and time into consideration.

When a home inspection goes bad it can certainly throw you for a loop, but it is important to remember that you have options.  Work with your Realtor on a plan of action and get your home sold!
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