Real Estate Professional · Schererville, IN · Member since 2017 · 36 posts · 4 votes
Hello All,
I am waiting for my first 4 unit inspection report, but want to be prepared to either drop the property buying price down or instead do the found repairs.
Can you guys shed some lights on the some ways to approach this task?
Quick answer: it depends. In negotiating, the one who wants it the most, looses. Do you want to buy the property more than the seller wants to sell?
Many people use an inspection report to get price reductions to compensate for necessary (either in reality or in buyer's mind) repairs. It becomes a negotiation, so govern yourself accordingly.
One caveat: NEVER have the seller do the repairs. If necessary, as in for larger-ticket items, get "a couple two-tree" contractor written estimates and get your price reduction.
Quick answer: it depends. In negotiating, the one who wants it the most, looses. Do you want to buy the property more than the seller wants to sell?
Many people use an inspection report to get price reductions to compensate for necessary (either in reality or in buyer's mind) repairs. It becomes a negotiation, so govern yourself accordingly.
One caveat: NEVER have the seller do the repairs. If necessary, as in for larger-ticket items, get "a couple two-tree" contractor written estimates and get your price reduction.
I am waiting for my first 4 unit inspection report, but want to be prepared to either drop the property buying price down or instead do the found repairs.
Can you guys shed some lights on the some ways to approach this task?
Thanks.
Don't get too excited. Inspection reports are for major non disclosed items. It's not like the seller is gonna be surprised by what the inspector finds. Seller likely knows the condition of the property. They've got a price in mind just as you do. It's all a negotiation that is dependent on the demand for the property.
@Abdessettar Ibourki Depending on the age of the home, there may be a blanket statement about lead paint and asbestos. If you want the home specifically tested, you should ask to do that. There are tests you can buy and do it yourself.
I don’t bother with lead inspection. If the house was built before 1978, it probably has lead paint. It doesn’t bother me or my tenants. I always make sure the paint is not peeling or chipping (which I would do anyway). I also am usually renovating, so the wood will be repainted anyway.
* if you’re in MA or CA, the rules change... much more strict.