How To Negotiate Repairs On Home Sale

Question

-I have Single Family Home under contract price 220k - buyers inspection noted 2 items:

1) roof (shingle wear) replacement estimate:4,500-8,500. I was told the roof had 5-7 years left/no leaks

2) electric panel (does not have 1 main breaker to shut down panel at once) estimate:3500k - 4500k.

The panel is called a "split bus panel" with 4 main shut-offs. Code is up to 6 main shutoffs.

Buyer's appraisal came in at 220k (at least that is what buyers realtor said).

How do I approach the negotiation of the additional costs? Especially, when the appraisal is equal to the sale price with an "as is contract". Thanks to anyone who can help me.

Theresa Harris · Answer

As Chris said, if the buyers don't ask, don't offer anything. The electrical may not have been known in advance, but they could look at the roof and know it needs to be replaced shortly and should have factored that into their offer price. If they didn't, that is their problem.

Jonathan Greene · Answer

If the roof has no active leaks, it's not something you should be giving a credit for unless the shingles are really out of whack. In NJ inspectors do not go on the roofs so I am wondering if they did or if this was visual with binoculars. As a seller, I would not be giving roof credits under any circumstance without verifiable issues creating a hazard inside, especially not if the roof is less than 8 years old. The electrical panel could be an issue you should fix as it should be up to code, but I will guarantee when you get your own estimate on the job it will be much less. If those are the only issues, I would say not on the rood and get your own estimate on the electric and then do it yourself or offer than credit.

Chris T. · Answer

Did the buyer ask you for credit on the 2 items? If not, I wouldn't bring it up. Most good home inspectors will list down what is deficient with the property, in order to give their client an idea. It doesn't mean the seller has to compromise.

It comes down to supply and demand, and how motivated are you to sell your property? and/or how motivated are they to buy?

Ray King · Answer

Thank you to everone who responded.

The buyers could not/can not get financing to purchase or insurance coverage with the age of the items: roof and electric repair

Stephen Gallagher · Answer

@Ray King

As an electricia, I would be interested in seeing the inspection report. Your estimate is what I would be charging for an entire service upgrade, panel, meter socket, grounding, and surge protection. You more than likely could just add a service disconnect between the meter and panel without paying more than $700.

I spend a lot of time writing rebuttal letters for sellers and buyers. Without seeing the report, it is hard to justify the reasoning for that cost.

I am in NH, VT, ME, Ma.

How To Negotiate Repairs On Home Sale

How To Negotiate Repairs On Home Sale

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