How to Use a Home Inspection Report to Negotiate Repairs

The most important step in buying a home is the home inspection. A detailed home inspection helps you discover things you may not have noticed during your walkthrough. 

The inspection done by professionals can uncover hidden issues with the structure, plumbing system, or electrical system.

It means a home inspection report contains all information about the condition of the building. Negotiating home repairs also becomes easier after a home inspection, as the buyer gets proof of issues present.

What is a Home Inspection Report?

A home inspection report is a detailed document that a certified home inspector prepares. It is finalized after a thorough inspection of the property and highlights the status of a building's structural and functional elements.

Is a Home Inspection Report Also Usable for Appraisal?

A home inspection is different from an appraisal. An appraisal assesses a property's market value, while an inspection assesses its condition. A home inspection report contains details of defects and evidence that helps a buyer negotiate the deal.

What is Included in a Home Inspection Report?

Before setting up a meeting to negotiate, you should understand what a home inspection report says about the building. The home inspection report contains information about the following elements of a building:

• Framing and structure

• Exterior of the home

• Drainage and grading

• Attics and crawl spaces

• Interior of the building

• Plumbing system

• Heating and Cooling System

• Electrical system

• Electrical appliances

• Health and safety concerns

Any issue found in these aspects of a building gets highlighted in the home inspection report. The inspector attaches maximum evidence through pictures of the defective parts.

What to Check in a Home Inspection Report Before Negotiating a Home Repair?

Before negotiations, the buyer must understand the report. The home inspection report is usually divided into three categories:

1. Major Issues

   
   

Any issues that can cause significant damage to the building or people living in the home. These can also be considered as red flags. These issues can rise safety concerns and the building might not comply with local codes.

2. Minor Issues

   
   

These can be minor repairs, like a leaky faucet or peeling paint. These issues are usually ignorable. Most minor issues are in the form of cosmetic defects that are easy to repair. If not fixed, these issues don’t cause any harm to building or its residents.

3. Maintenance Recommendations

   
   

Issues with a home's functional elements may require maintenance. For example, a water heater that has been working for a long time may not be as efficient, so its maintenance becomes inevitable.

The buyer must know the status of the issues an inspector has detected in the home. This can help the buyer decide what to put on the table when it's time for negotiation.

What Issues are Likely to be Discussed in Negotiations?

Buyers can prioritize the issues according to their requirements. But still, there are a few things worth negotiating:

1. Safety Concerns

2. 
   

If the report contains red flags highlighting safety concerns in a building, the buyer should put them on the negotiation table. These issues can be faulty wiring, mold, or severe structural problems.

2. Health Issues

3. 
   

Health issues in a building are mostly related to mold, asbestos, or contaminated water. If there is a chance of any such thing, the buyer can discuss it.

3. Costly Repairs

4. 
   

If the building needs expensive repairs to be in good condition, the buyer must negotiate repair work according to the issues highlighted in the home inspection report. However, minor issues and cosmetic defects can be ignored.

Is it Appropriate to Ask for Too Many Repair Works?

The buyer should demand the repairs highlighted in the inspection report. Asking for too many repair works can annoy the seller. In such cases, the seller may deny making any repairs. In such cases, the buyer has only one option: to walk away from the deal.

The right way to negotiate on the repairs is to request that the seller fix issues highlighted in the inspection report before closing the deal. Forcing a seller to make the repairs can affect the deal.

What if the Seller Denies Making the Repair?

The seller may deny making any repairs due to personal reasons. In this case, a suitable solution is to get an estimate of the essential repairs and negotiate the price of the home. The reduction in the sale price can help the buyer fix the issues in the building and make it a proper place to live.

Tips for the Buyer While Negotiating

The seller may respond with a counteroffer. The seller can agree to some of your requests or offer a lower amount by declining specific repair works. For such scenarios, the buyer should keep the following tips in mind:

• Be prepared to negotiate further

• Before negotiations, get complete knowledge of non-negotiable repairs

• Respond soberly, as negotiations sometimes can be tense

• Remember, you are trying to reach a mutual agreement that both parties appreciate.

Conclusion

After getting a home inspection report, a buyer needs to be calm and request the essential repairs when negotiating home repairs. Unnecessary demands from the buyer’s side can cause the negotiations to end without any good results. 

Well, if you are also going to purchase a home and do not want to spend more on repair works, schedule an inspection today and sit at the negotiation table with confidence.