Home Inspections And Deals That You Didn’t Think Would Fail.

So, the negotiations are done, you and the seller/buyer have agreed on a price and contingencies.  Now you can look forward to the closing and the next chapter of your life.  Or can you?

The home inspection has been done and all of a sudden you find yourself in a perilous situation.  There are problems that the buyer would like addressed.  The seller asserts that these “problems” are accounted for in the price that’s been negotiated.  All of a sudden you are renegotiating the deal you thought was done.  What to do?

Is it a new house?  If so, there will be allowances for a “punch list” of items that the builder must finish.  These could fall outside of the requirements that the building inspector may have for issuing an occupancy permit.  Your contract should spell out an estimated completion date for punch list items and an agreed upon “hold back” of funds should they not be completed prior to the closing.

If the house is not new – what’s reasonable?  It’s not a new house so there are bound to be items that need some attention.  How do the buyer and seller come to agreement on these items?  Some repairs will be necessary to secure financing, such a septic systems or smoke detectors, etc.  Others will need to be addressed between the parties. 

Here’s how to begin.  Identify the items that are of utmost importance – rank the issues.  Then place an estimated cost and aggravation price to these items.  Next decide if these items, if not taken care of by the seller, are deal breakers for the buyer.  Is it worth walking away from this property that you’ve searched so long for?  (Most buyers start their search in earnest 12-18 months prior to even visiting a property). 

From the seller’s perspective, do you just want to be done with it?  Do you have the resources to correct these “problems”?  Is it worth losing this sale over $1000 or whatever the dollar value is?

In the end, it all comes down to the motivation of the parties to see the sale through.  Cool heads and an intermediary, such as a real estate professional, should help resolve these issues.  Everyone needs to keep in mind the ultimate goal, selling/buying a home.