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After weeks of searching, the contract has been signed and the process begins towards making your home yours. Next, and perhaps most important, is the home inspection. A home inspection is required by more than 90% of buyers looking to make a large investment. A buyer doesn’t want to purchase a “lemon” house. We can only see the problems with a house so a home inspection examines it in greater detail. Can you make an offer if the inspector finds problems with the home? Yes! Most cases. Let’s take another look.
What is a home inspection?
A Home Inspection in st Augustine FL is a more detailed examination of a house than can be seen by the naked eye. This is usually done within a few days after the seller and buyer sign a contract. It can be hard to find a qualified home inspector. Make sure to research an inspector who has positive reviews and is experienced.
InterNachi recommends inspecting certain areas. These areas include exterior, HVAC, plumbing and attic insulation, electrical, fireplaces, attic ventilation, doors, basement and foundation.
What is a Counter-Offer?
A buyer can “counter-offer” after a home inspection. This is when the buyer asks for reopening negotiations or fixing major inspection report issues. A buyer should be able and willing to purchase a home without major problems. The buyer can ask for any issues addressed, and the seller may refuse.
What’s the point of a home inspection?
A home inspector who is certified and experienced would be able to find any problems in the home and give it a clean slate. This is not a common occurrence. The report may include minor repairs such as replacing a faucet in the bathroom, or repairing cracked tiles. The buyer can make these minor repairs at a later time. Major issues like HVAC or electrical problems would make it difficult to offer a counter-offer after a home inspection. There are no mandatory fixes but sellers should be willing to address these problems as they could prove harmful.
What are the options for buyer and seller?
Buyer
A member of the National Association of Realtors is a must for every buyer. A realtor can help the buyer determine which areas on the inspection report should be repaired or replaced, and assist with negotiations. In the counter-offer, it is helpful to have a professional come out and estimate the cost of the repairs.
Seller
The realtor will send a counter-offer to the seller and the seller will decide whether or not he/she would like to accept it.
After a home inspection, the counteroffer
The counter offer is between the buyer and the realtor to request specific repairs or replacement. The request should be polite, kind, and not mean. If the letter comes across as harsh, the seller may be upset and can cancel the deal. The written offer should include a copy of the home inspection report and the estimates from the professional.
The realtor might also be open to accepting a “repair credit” request, which would be added to the contract. The seller will not need the money, which helps both the buyer and the seller. The seller won’t have to rush repairs and can deduct the cost from the closing costs. This is a win-win situation for the buyer as there is no need to be concerned about whether or not the repair was done correctly. The buyer also saves money on closing costs.
Is it a buyers or sellers market?
It is a buyers market if there are many homes available for sale. This is also known as “supply exceeds demand”, which allows the buyer to negotiate more effectively. Buyers can negotiate with sellers to accept repairs in this market. They may also get “repair credit” for the home at a lower price.
On the other hand, a seller’s market is characterized by “demand exceeding supply”, and the seller holds the advantage in negotiations. The seller has the right to decide whether or not he/she will meet the buyer’s demands in negotiations. There may be multiple offers for the home, and sellers may not feel pressure to negotiate.
Conclusion
Remember that no home is perfect. Rarely, a home inspection doesn’t uncover a problem. The buyer must decide how much they want to spend on the house and how much time and money they are willing to invest. Sometimes we just don’t love a house enough to leave .
Are you considering counter-offering on a house? Did you go through a home inspection? Are you unsure if counter-offers are the right next step? We would love to hear your thoughts!
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