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Common Repairs Needed After a Home Inspection: What Must Sellers Fix?

March 27, 2020 by chorton Leave a Comment

Home Inspection Household Repairs

By Cathie Ericson | Oct 16, 2019

repairs-after-inspection

If you’re selling your home, you might wonder if there are common repairs needed after a home inspection. Most buyers, after all, won’t commit to purchasing a place until there’s been a thorough inspection by a home inspector—and rest assured, if there are problems, this professional will find them!

So if your home inspection turns up flaws that your home buyer wants fixed, what then? To be sure, repair requests after an inspection are a hassle, and liable to cut into your profits. So for starters, make sure to read your inspection contract carefully to make sure you don’t get locked into mending something you don’t want to fix.

“As a seller, you should never sign an inspection contract until you fully understand its obligations, particularly where it concerns your responsibility for fixing things,” says Michele Lerner, author of “Homebuying: Tough Times, First Time, Any Time: Smart Ways to Make a Sound Investment.”

And rest assured, there’s no need for you to fix everything a home inspector thinks could stand for improvement; a home inspection report is not a to-do list. Basically inspection repairs fall into three categories: ones that are pretty much required, according to the inspector; ones that typically aren’t required; and ones that are up for debate. Here’s how to know which is which.

Common repairs required after a home inspection

There are some fixes that will be required by lenders before they will release funds to finance a buyer’s home purchase. Typically these address costly structural defects, building code violations, or safety issues, sometimes in the attic, crawl spaces, and basement, and those related to the chimney or furnace.

An inspector will also check whether your septic system and heater are in good condition and verify whether there’s a possible radon leak or the presence of termites (homeowners tend to have many questions on these topics). Other conditions of the home that an inspector may report on include those related to the roof, electrical systems, and plumbing lines and the condition of your HVAC system.

If a home inspection reveals such problems, odds are you’re responsible for fixing them. Start by getting some bids from contractors to see how much the work will cost. From there, you can fix these problems or—the more expedient route—offer the buyers a credit so they can pay for the fixes themselves. This might be preferable since you won’t have to oversee the process; you can move out and move on with your life.

Home inspection repairs that aren’t required

Cosmetic issues and normal wear and tear that’s found by the inspector usually don’t have to be fixed.

“Some inspection contracts will expressly state that the buyers cannot request any cosmetic fixes to be made and can only ask that structural defects, building code violations, or safety issues be addressed,” says Lerner. Furthermore, “state laws may also impact your liability as a seller for any issues uncovered during an inspection.”

Be sure to check your local ordinances to know which fix-its that are found during an inspection legally fall in your realm of responsibility.

Home inspection repairs that are negotiable

Between fixes that are typically required and those that aren’t is a gray area that’s up for grabs. How you handle those depends in part on the market you’re in. If you’re in a hot seller’s market, you have more power to call the shots.

“While buyers are always advised to have a home inspection so they know what they are buying, when there are a limited number of homes for sale and buyers need to compete for homes, they are more likely to waive their inspection right to ask a seller to make repairs,” says Lerner.

In fact, “the best contract for a seller would be for the buyer to agree to purchase your home as is or to request an ‘information only’ home inspection, thus absolving you of any need to pay for any fixes found by the inspector,” she adds.

However, in a normal market, you won’t be able to draw such a hard and fast line related to an inspection.

Work with your real estate agent to understand what items you should inspect and then tackle—and where you might want to push back. Don’t have an agent yet? Here’s how to find a real estate agent in your area.

Just remember: you’ll want to be reasonable when it comes to repairs because you may have already put a lot of time into the selling process, and it’s likely in your best interest to accommodate some fixes rather than allowing the buyer to walk away. Also, depending on the magnitude of the requested fix, it’s not likely to go away. Now that it’s been uncovered by the home inspector, you’ll need to disclose the issue to the next buyer.

How to negotiate home fixes

Here are two sneaky but totally effective ways to handle this home hurdle that’s been uncovered by your inspector:

  • Offer a home warranty. “I sometimes keep a $500 one-year home warranty in my back pocket as a token to ease concerns found during a home inspection,” says Kyle Springer, a Realtor® with Coldwell Banker in Bowling Green, KY. That can come in handy if there is an element that doesn’t truly need fixing but is still worrying the buyers, such as an aging HVAC unit.
  • Barter for something of value to the buyer. Often sellers will suggest their real estate agent ask the buyer’s agent if the buyers want appliances or furniture if they have no plans to move them. Springer advises sellers to wait to make that offer until after they get the list from the inspector, because they may be able to beg off certain fixes in exchange for items such as the washer and dryer.

A home inspection can turn up all kinds of issues, but nearly all can be addressed quickly, pleasing buyers and sellers alike.

 

 

Filed Under: Home Improvements, Real Estate Advice, Selling Your Home Tagged With: advice, Blog, home inspection, home remodel, homeowner tips, negotiating, negotiation, preparation to selling, real estate advice, selling a home, stephenville tx

3 Ways to Give Sellers Your Best Offer

September 20, 2019 by chorton Leave a Comment

3 Ways to Give Sellers Your Best Offer

female agent presenting to couple

You don’t want to spend too much on a property, but you also don’t want to lose out on the perfect place. That’s why you should do some research before making an offer on a home. Take these three steps to present a compelling offer to sellers.

Decide on the Right Price

The sale price of a home across town may have little to do with what a home in your area is worth. Determine the right price by finding out how a property compares to similar homes nearby, what REALTORS® call “comps.” Comps are an important part of determining price because they reflect neighborhood conditions. Your REALTOR® can help you find the best comps to use for the property you want.

Show Sellers You’re Serious

Finding the sellers’ perfect price doesn’t guarantee they will accept your offer. Homeowners will consider the amount of earnest money in the proposed contract as well. A higher number may show sellers you’re serious about your offer.

Be Flexible

Some sellers may have a strong preference for when they close on the sale. If you can meet their timeline, your offer gains strength. And your flexibility on contingencies, repairs, or other negotiable aspects may make your offer more attractive to the sellers.

Your REALTOR® can help put together an offer that gives you the best chance of getting the home you want at terms that are favorable to you.

 

 

Filed Under: Buying a home, Real Estate Advice Tagged With: best offer, buying a home, buying homes, negotiating, negotiation, offers

Why a higher offer is not always better

September 18, 2019 by chorton Leave a Comment

Why a higher offer is not always better

If you received two offers on your house that were $5,000 apart, you should take the higher one, right? Not so fast.

Sure, money plays a huge role in your decision to accept an offer, but it shouldn’t be the only one. Here are some other questions to ask:

Does the Buyer Have the Money?

Without cash or a letter from a lender, your buyer may not be able to afford the price he’s proposing. Your REALTOR® can help you tremendously by making sure that anyone who places an offer on your home is qualified.

How Much Earnest Money is Included?

Earnest money is an amount a potential buyer will put towards the sale in advance of the closing to show he’s entering into this transaction in good faith. A high amount of earnest money usually indicates a serious buyer. If the transaction closes, the money counts toward the downpayment; if it doesn’t close, the seller in some circumstances gets to keep the earnest money.

When’s the Closing Date?

Determine if the timeline for the transaction matches your schedule—you and the buyer may have deadlines that don’t mesh well.

Is the Buyer Asking for Anything Unusual?

Buyers can put all kinds of things in an offer. They can request an option to terminate, ask for repairs, see if you’ll leave the appliances, and make the offer contingent upon the sale of their current home. Your REALTOR® can help you decide what is reasonable.

It’s a wonderful feeling when someone presents you with an acceptable offer for your home. Just make sure you understand all parts of an offer, not just the dollar signs.

 

 

Filed Under: Blog, Real Estate Advice Tagged With: advice, negotiating, negotiation, tips

Your Guide to Negotiating an Offer

August 13, 2019 by chorton Leave a Comment

Your Guide to Negotiating an Offer

What you need to know to get the best deal for you.

Offers: Negotiating With Buyers illustration

When it comes to evaluating offers, what’s good for the goose may not necessarily be good for the gander. One seller may be overjoyed with their offer, while another may be disappointed.

That means, in order to figure out whether an offer you receive is “good” —and whether you should negotiate — you’ll need to do two things:

  1. Think back to your original goals, and ask yourself whether this offer helps you meet them.
  2. Get advice from your agent, who can help get the best deal for your specific situation, wants, and needs.

So what do you, the seller, need to know before negotiate with a home buyer? We’ve got answers to some commonly asked questions.

What’s a Counteroffer?

When you receive an offer, you can accept it as-is, reject it outright, or make a counteroffer — a move that opens negotiations with the buyer.

Got Low-Balled?

Rather than get indignant, evaluate the offer holistically. Maybe the closing date trumps the money. If the offer’s really out of touch, your agent can ask the buyers for their reason, which may provide intel about your home.

Unless you’re being offered an amount equal to or above the full listing price, many buyers expect you to make a counteroffer — which is why a lot of people make an initial offer that’s lower than the asking price.And why a lot of buyers make an initial offer that’s lower than what they’re ultimately willing to pay.

What Should a Seller Prioritize?

Before you start negotiating, you’ll want to know what you’re hoping get from the buyer. Obviously, money is important. But it’s not everything. There are other factors to consider when crafting a counteroffer, particularly timing.

So, sit down with your agent and have an open discussion about your goals. Do you want more money? A faster closing period? Fewer contingencies? When you review these types of questions with your agent before you respond to an offer, and have a crystal-clear sense of your priorities, the negotiation process will go a lot more smoothly.

Who Has More Leverage?

Ready to play hardball? Hold up, slugger. First, you have to consider your position on the field. How much negotiating power do you really have? The answer depends on several factors.

A lot depends on your local market conditions. If you’re in a buyer’s market — meaning the supply of homes exceeds demand from buyers — you may have to make some concessions to secure an offer. If you’re in a sellers’ market —  and homes are flying off the proverbial shelves,  selling at or above list prices — you may be able to persuade a buyer to offer more money for the house, for instance, or to let go of some contingencies (aka provisions that must be met for the transaction to go through).

Your timetable will also impact whether you have the upper hand. If you’re not in a rush to sell, you may be free to negotiate more aggressively. If you’re in a time crunch because, say, you already bought your next home and don’t want to pay two mortgages at one time, your hands may be tied.

In any case: Confer with your agent. They can help you objectively assess your position and determine the right negotiating strategy.

How Long Can This Go On?

Don’t worry. It may only feel like forever. 

When you make a counteroffer, the buyer can either accept the new offer, reject it, or make a new counteroffer. (Sound familiar?)

This volley can go back and forth, and potentially end in a stalemate — unless you or the buyer put an expiration date on your counteroffer. This can be a smart strategy for you as a seller because it puts pressure on the buyer to make a decision. It also gives you the ability to move on to the next bidder if the buyer tries to stall (chances are, they’ll do this so they can look at more homes without giving yours up).

It’s not unusual for the first offer to be best one — depending on market conditions, of course. And often, sellers see the most interest from buyers in the first month of the home being on the market. 

If you get a good offer right off the bat, start negotiating. You may get a better offer. On the other hand, you may not.

Which Negotiation Tactics Are Most Useful?

The actual negotiation is the job of your agent, who will be experienced in real estate deal-making. That being said, you should still strategize with your agent before they make that counteroffer for you. Here are five ways you can nab a better deal:

  1. Avoid making an emotional decision. It’s easy to get caught up by the emotional bond you’ve formed with your home. The backyard just might be where you got married. And that cozy office could be where your small business was born. But the important thing to remember is this: You have to detach yourself from your home. This is business — nothing more.
  2. Know your bottom-line. Before moving forward, figure out what you need to get from the deal, at a minimum. That will give your agent a baseline when opening negotiations.
  3. Negotiate a “clean” offer. You want an offer with as few contingencies as possible, since contingencies give the buyer the opportunity to back out of the deal. But some contingencies — such as an appraisal, an inspection, or a financing contingency — can’t be waived by home buyers who are obtaining mortgages because they’re typically required by a mortgage lender in order to approve the loan. Still, if you have multiple offers to choose from, you may be able to persuade a buyer to waive certain contingencies, such as a radon contingency or termite inspection contingency.
  4. Offer a home warranty. In a buyers’ market, a low-cost way to make a deal more appealing to a buyer is to offer a home warranty — a plan that covers the cost of repairing home appliances and systems, like the air-conditioner or hot water heater, if they break down within a certain period of time (typically a year after closing). Home buyers love this extra security blanket, and the standard one-year basic home warranty will only set you back about $300 to $500.
  5. Don’t overlook the closing date. Typically, the sale process — from accepting an offer to closing — takes about 30 to 45 days (sometimes a little longer). But in most cases, the faster you can close the better. Especially if you need cash to buy your next home. A quicker closing period has to be feasible for the buyer, however, and some types of home loans take longer to obtain than others.

Should I Start a Bidding War?

If you have more than one offer on the table, you might be tempted to pit buyers against each other and watch them duke it out for your home. (Anyone who’s seen The Bachelor knows that kind of drama can be fun, after all.) But think twice before you do: This strategy can backfire. Buyers may walk away in frustration. 

Rather than starting a bidding war, ask all buyers to come back with their “best and final” offer by a certain deadline (say, within the next 24 hours), and then choose the one that’s right for you.

Remember: It’s Good to Give and Receive

At the end of the day, receiving an offer is a good thing! It means you’re getting closer to a sale. But remember, you may have to give a little in the negotiations, too. Keep your head on your shoulders — don’t make an emotional decision — and you’ll be all the more likely to get what you want.

Filed Under: Blog, Real Estate Advice Tagged With: negotiating, negotiation, offers, real estate advice, tips

TAKE 5: WHAT TO NEGOTIATE WHEN BUYING A HOUSE

July 3, 2019 by chorton Leave a Comment

TAKE 5: WHAT TO NEGOTIATE WHEN BUYING A HOUSE

Whether you are a first-time homebuyer or a seasoned veteran, the negotiation part of the transaction can be a little daunting and stressful. However, it is necessary to ensure you are getting the best possible deal for your money. So, what should you negotiate when buying a home?

  1. Closing costs. Your closing costs are determined by a variety of factors, but you can expect it to be between 2% to 5% of the purchase price. Ask the seller to cover some or all of the closing costs upfront or request a closing credit that can be used to make specific updates and fixes to the home.
  2. Furnishings. Love how the seller has furnished and decorated the home? Buyers often negotiate keeping couches, fixtures, landscaping items, patio furniture, appliances, and more. And many sellers agree, wanting to make the home more appealing.
  3. Inspection and closing timing. Buyer offers that include a quick inspection and close timeline are often more attractive to sellers who have been going through the process for far too long. Just ensure you allow yourself ample time to get your financing in place and complete proper, thorough inspections.
  4. Home warranty. Sellers will often agree to pay the premium on the home warranty at closing and then hand it off to the new homeowner, who is responsible for the deductible on any future claims.
  5. Repairs. Your inspection may uncover small or large repairs needed to bring the home up to standard. You can negotiate to have these items fixed before closing or ask for a price reduction to cover the costs.

https://www.breakthroughbroker.com/take_5_what_to_negotiate_when_buying_a_house#.XRt9uetKiM8

Filed Under: Blog, Buying a home, Real Estate Advice Tagged With: negotiating, negotiation

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