Can I Negotiate After a Home Inspection?

Depending on the circumstances, buyers and sellers may discuss:

• Repairs
• Seller credits
• Purchase price
• Replacement of certain items
• Other contractual terms
• Whether the transaction will continue under the existing agreement

The appropriate approach depends on what the inspection actually found.

A home inspection report can contain a long list of observations.

Some may be significant.

Others may be routine maintenance items, minor defects, or conditions commonly found in homes of a particular age.

Trying to negotiate every item can make it harder to distinguish significant concerns from ordinary maintenance.

A more useful approach is to focus on issues that could materially affect safety, functionality, cost, or the property's condition.

There are several ways the parties may address inspection concerns.

The seller might agree to:

• Complete a repair
• Hire a professional to address an issue
• Provide a credit toward allowable buyer costs
• Reduce the purchase price
• Agree to another contractual solution

The best structure depends on the issue and the terms of the transaction.

The seller may disagree with the buyer's request.

A seller is not necessarily required to agree to every repair or concession requested by a buyer.

The buyer then has to determine what options remain under the contract.

Depending on the applicable inspection contingency and state-specific rules, those options could include proceeding with the purchase, continuing negotiations, or exercising a contractual right to terminate.

A productive inspection negotiation usually starts with understanding what the inspection actually tells you.

Ask:

• Is the issue a safety concern?
• Could it involve a significant future expense?
• Does it affect the home's function?
• Was it something that was reasonably apparent before the offer?
• Does the contract provide a specific right related to the issue?
• What would it cost to address?

The answers can help put the request into perspective.

The inspection is intended to evaluate the property's condition.

It shouldn't automatically become an excuse to renegotiate every term of the transaction.

At the same time, significant problems discovered through an inspection shouldn't be ignored simply because the buyer already agreed to a price.

The key is understanding the difference between normal ownership and an unexpected material problem.

The inspection period can be one of the most important points in the transaction because it gives the buyer information that may not have been apparent when the offer was written.

Use that information carefully.

If the inspection uncovers an important issue, the next step is to understand what the contract allows and determine whether a repair, credit, price adjustment, or another solution makes sense.