Buyer asks for inspection report items to be repaired.

25 Replies

@Deadrick Colbert It's case-by-case but some of them (in all practical reality) aren't really negotiable.  I bought a property where there wasn't a rail installed on a first floor balcony.  It was a safety hazard as noted by the inspector and it's a practical reality that insurance companies and lenders want that addressed.  That a little different than something like a garbage disposal not working.  If it's not something safety-ish I'd say you come up with a ballpark figure and negotiate the dollar amount.  Let the buyer worry about doing the repairs to their level of satisfaction.  The last thing you want is a buyer throwing a fit at the last minute because your shade of touch-up paint didn't quite match.  

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@Andrew Johnson what about replacing rotten wood around windows and repainting window frames and a porch? Also, even though they got an inspection, they want a licensed roofer to inspect the roof again. The roof is only 4 years old, so I'm not worried about it having any problems.

Originally posted by @Deadrick Colbert :

@Andrew Johnson what about replacing rotten wood around windows and repainting window frames and a porch? Also, even though they got an inspection, they want a licensed roofer to inspect the roof again. The roof is only 4 years old, so I'm not worried about it having any problems.

 Your agent should have, and still can give you an idea of what amount of money or repairs you would typically need to give back to a buyer. Market conditions are the ultimate decider on these things and will ebb and flow with the market.

@Deadrick Colbert I think @Russell Brazil is right when he says that market conditions will prevail.  But when you're talking about repainting window frames and a porch it's a bit like a game of chicken.  You know if it was hard to get their offer or if you had people falling all over themselves to buy the property.  You know if you're paying a mortgage on a vacant home or if there's a cash-flowing renter in there.  There's a matter of practicality where it costs another month's mortgage of $500 or $5,000 to list it again and juxtapose that against giving them a credit for the paint.  On the buyer's side, they've got money invested into a first inspection and are about to put money into a second inspection.  They won't want to walk away from the deal either over the cost of a few cans of paint.  

Personally, I'd let them sink money into the second inspection and then offer them a nominal sum of money to "cover all repairs".  I wouldn't have to work done and open myself up to "well, now that we're replacing this trim we are finding more wood rot" or anything like that.  Just throw $1,000 at them with a polite "take it or leave it".  I'm just making up a dollar amount but you get my point.

I dont do any. I explain that the price agreed on is for the property in the condition it's in. I let them know on the onset that the inspection should be to help them decide if they want to close.

If they ask me to pick up a gum wrapper I say "nope"

@Deadrick Colbert re the roof inspection. Let them do it. Hopefully here being charged. The more they have sunk in the deal the less likely they are to walk.

I always inform buyers as part of accepting their offer and conditions  that the inspection is only for their benefit. The sale price is fixed and non negotiable. If they do not like the inspection report they have the option of backing out of the deal. 

I also insist on receiving a copy of the inspection report as one of my conditions.

Originally posted by @Andrew Johnson :

@Deadrick Colbert It's case-by-case but some of them (in all practical reality) aren't really negotiable.  I bought a property where there wasn't a rail installed on a first floor balcony.  It was a safety hazard as noted by the inspector and it's a practical reality that insurance companies and lenders want that addressed.  That a little different than something like a garbage disposal not working.  If it's not something safety-ish I'd say you come up with a ballpark figure and negotiate the dollar amount.  Let the buyer worry about doing the repairs to their level of satisfaction.  The last thing you want is a buyer throwing a fit at the last minute because your shade of touch-up paint didn't quite match.  

This is very good advice.  Find a cheap contractor, have them write you an estimate, take it off total, give buyer the phone # of that contractor.  

Originally posted by @Cody L. :

Deadrick Colbert re the roof inspection. Let them do it. Hopefully here being charged. The more they have sunk in the deal the less likely they are to walk.

 True.  Inspections ain't cheap

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Many people have different ways of looking at what to repair, pay for, give credits etc etc and sometimes it's a matter of principal to people, money or time which can drive these decisions to do or not do for the buyer after inspections. I have been doing smaller SFR flips and of course with a hard money loan out I don't really want to start all over with another buyer over the small stuff. I will have my contractor do almost all the small stuff the buyer wants and when it comes to the bigger stuff I will make deals with the buyer. Such as a roof was in question during our rehab and we knew there was a chance we might have to replace, so we waited for the inspection to come back and it came back that roof needed to be replaced, so we negotiated that we would pay for half the cost of the roof for buyer and funds will be given at close of escrow to buyer. Some would say, why did you do that, but it's better than paying for the entire new roof and we didn't get greedy and understood we can take our money from the deal to get more deals. My opinion is to make my customer happy and repair as many small things for them as we can to give them no excuses to back out of the deal. Now this is a business standpoint I'm looking at, not sure if your only doing one house a year or have a business etc etc, things could change on how you go about this.

Depends if it is lean toward to Buyer or Seller market.

When I sell house in a market not favor to Seller, or if I really need to cash-out, I would try to repair all the items the buyer requested.

But at this current very hot seller market, I would not repair anything.
If the buyer back-out, that's fine, at this upward momentum market, I would re-list my property at a higher price after the back-out.

@Deadrick Colbert Assuming the sale was not an "as-is" sale, think of the inspection repair request items as a second negotiation.  Usually this step in the transaction requires both sides to compromise a little bit to get a deal done.  On the flip side, if their is an issue one side or the other really digs in on deals can be lost as well.  I've seen it work both ways.

Also consider that some safety issues and other issues may affect their ability to close on a mortgage.

For example, termite damage will likely require a completed termite treatment before the bank will close. This would affect both you and the seller, likely delaying closing while it's figured out.

When I sell via a realtor, I 'set aside' in my mind a few extra $$ for repairs based on the condition of the house. (An inspector will ALWAYS find issues). And it's often easier to say 'I'll paint and repair the wood, but I'm not going to xxx' (whatever other issues they have). And if it doesn't cut into my 'repair budget', then that's more money in my pocket.

Originally posted by @Deadrick Colbert :

@Andrew Johnson what about replacing rotten wood around windows and repainting window frames and a porch? Also, even though they got an inspection, they want a licensed roofer to inspect the roof again. The roof is only 4 years old, so I'm not worried about it having any problems.

Rotted wood around windows and repainting is something obvious they should have noticed while walking through prior to making an offer, so I'd push back on why they think those conditions aren't already reflected in the agreed upon price (they should have been). 

As to the roof - if they are in their inspection period, I'd tell them they can have as many inspectors come through as they'd like at their own cost. If you've had any hail in the past 4 years, a good inspector will usually find some "damage". Be ready to push back hard on that as well - unless the roof has a hole/leak or is in extremely poor condition (which again, would be something they should have noticed to begin with), no repairs. 

My classic response is that if they thought they were getting a new construction home, they should have offered me double or triple what they did as our number to negotiate off of.

Originally posted by @Thomas S. :

I always inform buyers as part of accepting their offer and conditions  that the inspection is only for their benefit. The sale price is fixed and non negotiable. If they do not like the inspection report they have the option of backing out of the deal. 

I also insist on receiving a copy of the inspection report as one of my conditions.

Honestly I would advise against that.  When I fill out a sellers disclosure I just put "I don't know" on almost everything.  If you get a report that points out flaws, you can't legally fill out "I don't know" anymore.  I've been offered inspection reports and turned them down.  

Originally posted by @Matthew Olszak :
Originally posted by @Deadrick Colbert:

@Andrew Johnson what about replacing rotten wood around windows and repainting window frames and a porch? Also, even though they got an inspection, they want a licensed roofer to inspect the roof again. The roof is only 4 years old, so I'm not worried about it having any problems.

Rotted wood around windows and repainting is something obvious they should have noticed while walking through prior to making an offer, so I'd push back on why they think those conditions aren't already reflected in the agreed upon price (they should have been). 

As to the roof - if they are in their inspection period, I'd tell them they can have as many inspectors come through as they'd like at their own cost. If you've had any hail in the past 4 years, a good inspector will usually find some "damage". Be ready to push back hard on that as well - unless the roof has a hole/leak or is in extremely poor condition (which again, would be something they should have noticed to begin with), no repairs. 

My classic response is that if they thought they were getting a new construction home, they should have offered me double or triple what they did as our number to negotiate off of.

 You're spot on.  If the inspection came back showing a perfect property, I don't think a seller is expected to try to negotiate the price up.   The biggest thing inspectors "find" is "the AC (or water heater) is beyond it's service life"

Originally posted by @Cody L. :

I dont do any. I explain that the price agreed on is for the property in the condition it's in. I let them know on the onset that the inspection should be to help them decide if they want to close.

If they ask me to pick up a gum wrapper I say "nope"

I would accept those terms... but I would make the deal contingent upon you picking up the gum wrapper. And nothing else.

Originally posted by @Nick G. :
Originally posted by @Cody L.:

I dont do any. I explain that the price agreed on is for the property in the condition it's in. I let them know on the onset that the inspection should be to help them decide if they want to close.

If they ask me to pick up a gum wrapper I say "nope"

I would accept those terms... but I would make the deal contingent upon you picking up the gum wrapper. And nothing else.

 NO DEAL!   :)

If they could have/should have seen it/ considered it in the offer I would not do it. If it is required by state law as in septic you can be stuck. Other then that it's your choice but every inspector will find something, they aren't buying a new house and they shouldn't act like it.