How to Use Home Inspection Reports to Negotiate the Price of a Home

When you get the inspection report back on a home you're looking to buy, you may be able to use that report to negotiate the price.

Difficulty: Moderately challenging

Instructions

Things You'll Need:

• Purchase Agreement
• Contractor Referral Services

1. Be sure your purchase contract includes an inspection clause that makes your obligation to purchase the home dependent on the results of a professional home inspection performed within a stated period of time (usually 10 to 15 days) during the sales transaction.

2. Hire a professional home inspector to inspect the home within the contingency period.

3. Review the condition of each item listed on the home inspection report; decide if the condition of each item or component is acceptable or unacceptable to you.

4. Obtain estimates on repairs or replacements described in the home inspection report if estimates are not provided by the home inspector.

5. Compare your original offer to the estimated costs of any repairs or replacements.

6. Present an addendum to the sellers within the contingency period at a reduced price to cover the costs of repairs or replacements or give the sellers the option of getting the work done themselves.

Tips & Warnings

• In some states, inspections are performed before buyers present a purchase contract to the seller; check with a local real estate agent to find out about the laws in your state.
• Ask if the sellers have already had an inspection performed which will save you time and money.
• Most home inspection reports do not offer guarantees or warranties.
• Avoid the risk of losing your purchase deposit by making sure the home inspection is completed within the contingency period in your contract.
• If you find something in the report that is not satisfactory, let the seller know in writing what the defect or unsatisfactory condition is and that you want the item or items corrected before you agree to continue with the purchase.

[Bking6777]

on 8/26/2008 The tip about using the sellers inspection report is very incorrect. These pre-listing inspections are not usually done properly and the conditions with the house could have changed drastically. Hire your own independent inspector at www.ihina.org