Nothing good happens when a buyer’s inspection reveals a problem. Sellers strengthen their bargaining position if they have an inspection before listing their home. Here’s why.
PALM COAST, FL – April 25, 2017 – Home sellers strengthen their bargaining position by having a home inspection before listing their property. Here’s why.
Most sales contracts are contingent upon a buyer’s inspection, but that inspection happens after the price negotiation is done and the sales contract is signed. Any item that shows up on the buyer’s inspection gives the buyer leverage to reopen negotiations. The seller ends up either completing the repairs or consenting to a repair allowance. Either way, the result is money out of the seller’s pocket.
If the seller remediates the issues prior to listing their home, they are in control, either doing the work themselves or choosing their contractor. Repairs can end up being more expensive if the buyer specifies the contractor or requires that the repairs be done by a licensed contractor.
A seller’s inspection discloses previously hidden or overlooked issues, giving the seller an opportunity to remediate the issues before they are discovered by the buyer. Making available the inspection and documented remediation steps signals to the buyer that you are responsible and take care of your property.
The buyer may decide that they don’t need to pay for a buyer’s inspection. But if they do order their own inspection, a seller’s inspection is a valuable negotiating tool. It can be used to refute a buyer’s inspection report or to dilute its impact.
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