How do you negotiate after a building inspection?

Pest and building inspections often reveal issues that weren’t apparent during initial viewings, potentially changing the deal dynamics. Knowing how to navigate negotiations after receiving an inspection report is crucial for buyers and sellers. Focus on the most significant problems that could affect property value or safety. Minor cosmetic issues, while worth noting, shouldn’t typically be the focus of post-inspection negotiations.

Assessing costs

Once you’ve prioritized the issues, research the potential costs of repairs or remediation. For significant problems, it’s wise to get quotes from licensed contractors. This information will be invaluable during negotiations, providing a factual basis for any requests or concessions. Identify the extent and cost of pest-related issues by consulting pest control professionals. Termite damage, for example, is highly costly and requires immediate treatment and ongoing prevention measures.

Strategies for buyers

• Request repairs – You ask the seller to complete the necessary repairs before closing. This approach ensures the work is done but may delay the closing process. Be specific about what repairs you want, and request that licensed professionals complete the job.
• Ask for credits – Instead of having the seller make repairs, you request credits towards closing costs. This option gives you control over the repair process and allows for a quicker closing. Ensure the requested credits are reasonable and based on accurate cost estimates.
• Renegotiate the price – Consider renegotiating the purchase price for significant issues. This strategy works well when the problems are extensive or when you prefer to handle repairs yourself. Be prepared to justify your proposed price reduction with cost estimates from the inspection report and contractor quotes.
• Walk away – If the inspection reveals severe problems that the seller is unwilling to address, and you’re uncomfortable assuming the risk or cost, walking away might be the right option. Most purchase agreements include inspection contingencies that allow buyers to exit the deal based on inspection findings.  Vitalbuildinginspection.com.au/pricing/ has a good point for the building inspections in Sydney.

Tips for effective negotiation

Regardless of whether you’re the buyer or seller, these tips can help ensure a successful negotiation:

• Stay calm and professional – Emotions run high during real estate transactions, especially when unexpected issues arise. Maintain a calm, professional demeanour throughout negotiations to keep discussions productive.
• Focus on facts – Base your negotiations on the facts presented in the inspection report and any subsequent contractor estimates. Avoid emotional arguments or speculation about potential problems.
• Consider the market – Consider the current real estate market conditions when negotiating. In a seller’s market, buyers may have less leverage, while in a buyer’s market, sellers need to be more flexible.
• Use clear communication – Clearly articulate your requests or offers in writing, referencing specific items in the inspection report. This will help avoid misunderstandings and provide a paper trail for negotiations.
• Be willing to compromise – Successful negotiations often involve give and take from both parties. Be prepared to compromise on some issues to agree on more critical points.
• Consult with professionals – Work closely with your real estate agent, who provides valuable insights into local market norms and negotiation strategies.
• Set deadlines – Establish clear deadlines for repairs, credits, or price adjustments to keep the process moving and prevent negotiations from dragging on indefinitely.

Whether you’re buying or selling, approach post-inspection negotiations as an opportunity to ensure the property meets expectations and the deal is fair. If you have patience and are willing to find mutually beneficial solutions, you can successfully navigate this crucial stage of the real estate process.