Should I negotiate purchase price even after inspection?

Question

Purchase agreement has been signed by me (the buyer) & seller. I get the inspection report saying there are lots of repairs to be made including roof, plumbing, electrical, tree removals. Is this the right time to negotiate purchase price to be even lower? What strategies should I use to lower the purchase price?

Mike Cumbie · Answer

Generally, I recommend that if it is something you should have seen (or should be embarrassed that you didn't see) when putting the offer in then it is pushing it. "There is a 10 foot hole in the living room floor leading to the basement" and we want to play with the price, gets a completely different reaction from most sellers than "There is a broken rafter in the NorthSide of the attic". One is "I found something new nobody would have seen" and the other is "I want to re-deal this contract every day up to closing" or worse "Me and my agent have no idea there is a 10 foot hole because that's how observant we are". So I would look through the report, see what is new information and then go from there.

Anthony Dooley · Answer

The purpose of the due diligence period is to inspect and make sure the price is acceptable. There is no such thing as a perfect building, so don't expect the seller to fix everything prior to the sale. However, if repair cost make it a deal breaker, you either need to renegotiate or walk away.

Derek Harris · Answer

Inspection reports can be a very powerful negotiation tool. Many times sellers do not know how bad their properties truly are. If the seller has already listed some of the issues on their disclosure then they may be less inclined to reduce the price for that issue. They may think the current asking price already reflects the rehab. However, if you submit the inspection report along with a contractor bid, you may be able to negotiate a lower price. Best of luck!

Shawn Mcenteer · Answer

@Susan Tan when problems come up during inspection the first person I go to is my attorney. Your attorney will be able to advise a solid approach based on what you want. The price of the property will likely remain the same but you can request credits or items be fixed prior to closing assuming proper contingencies are in place.

Joe Villeneuve · Answer

If the agreement is contingent on the inspection...then yes.

Should I negotiate purchase price even after inspection?

Should I negotiate purchase price even after inspection?

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