Negotiate on Inspection [Like a Boss]

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by Osman Parvez
After a long search, you finally found the house you've always wanted.   Congratulations!  Your agent is a skilled negotiator and helped you obtain a great price.   You put it under contract and you've had it inspected.

So, what happens when inspection issues are discovered?   A well written contract affords buyers an opportunity to object to the condition of the property and possibly get things fixed.  Here's my theory on how to handle it.

1.  Issues that were truly unknown prior to writing the offer are fair game.    If it was obvious and/or disclosed in the Seller's Property Disclosure, these issues should have been reflected in the already negotiated purchase price. 

2.  It's wise to focus on serious issues, particularly those that deal with core envelope, structure, or health/safety matters.  Don't sweat the small stuff.    

3. It's reasonable to expect important systems of the house to be in good condition.     I'll borrow a concept from my experience in the aviation finance and investment industry;  "half-life" is a term that describes having 50% of useful life remaining.   So if the furnace is on its last legs or the roof is found to be leaking, it's not in half-life condition and most buyers, most of the time, expect the major systems of the house to be at or better than half-life.  Furthermore, most lenders will require those systems be remedied prior to funding the loan.  

Of course, nothing precludes buyers from objecting to everything under the sun and nothing requires sellers to fix anything, at all.    Just remember if you appear unreasonable on inspection issues, you may not be taken seriously and in my experience, you'll probably end up with less than you might have if you focused on the big stuff.    Plus, be sure to double check market conditions before you press what you think is leverage.   You may not be on as solid ground as you thought.
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Realtors at Silver Fern provide the latest market information, straight forward advice and the highest standards of service. You can reach Osman at (303)746-6896.------Note: Our goal is to provide exceptional service to our clients. The ideas and strategies in this blog post are the opinion of the writer at the time of publication. Silver Fern Homes recommends careful and complete due diligence before buying or selling real estate or other investments. Consult with your professional advisers before making financial decisions. This article is not intended as legal, tax, or investment advice. Silver Fern Homes will not be held liable for investment choices derived from this article.