Real Estate 101 - Negotiating Repairs in a Real Estate Sale

Todays' submission to the Real Estate 101 series is a follow up on yesterdays article, Selling Your Charlotte Home in As Is Condition Both of these Articles shed light on what can be a stressful step up the real estate transaction process.  While the offer to purchase (Form 2-T) in North Carolina clearly states the property is being transfered in "As-Is" condition, it is very common for buyers to submit repair requests following the inspection.

(Ahh home inspections, when every nook and cranny of your home will be scrutinized with a furrowed brow)

Do not presume that home owners are required to address all problems identified in a property inspection. It is a process of negotiation.  You should know ahead of time that inspections normally detail defects plus additional recommendations from the inspector on improvements that can be made. Evaluate the defects instead of the upgrades because it is not advisable to ask an owner to install upgrades to a home. If that were done, the price of the property would be more. Information on how to negotiate inspections for Charlotte NC property purchases can be found in this article.

Deciding Which Issues to Negotiate in a Transaction

Buyers should consider the list of defects and decide which problems are worth discussing, keeping in mind a strategical approach.  Sometimes it is best to pick your battles. If there are a couple of major defects and several smaller ones, it can be better to simply request the major ones. If there is an extensive amount of moderate defects, perhaps asking for the more critical ones is smarter than submitting an outrageous full list.

Possible Negotiation Outcomes

Sellers have several alternatives...

. Agree to fix everything prior to closing.

. Agree to repair some of the defects before closing.

. Agree to compensate the buyer (via a credit towards closing costs or a drop in price). The repairs are the responsibility of the home buyer.

. Refuse to do anything.

The negotiation may continue many times until both parties come to an agreement. In some cases, agreeable terms may not be possible at all. If both parties stay on respectful terms, both could be more willing during the negotiation discussions. Whereas if any one feels alienated, agreement may be extremely difficult.

Information On How To Negotiate Inspections For Charlotte NC Property Purchases

Strategies should be considered with your real estate agent and should take into account the many aspects of the sale. Keep in mind that inspection results include both problems and recommendations and that trying to demand improvements is almost never successful.

Inspections are not a way to renegotiate sale price but rather to resolve serious issues that were not predictable. Understanding how the process works will lead to better outcomes.