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

Video Transcript

"Using a home inspection report to negotiate the price of a home can help you save a lot of money. I'm Richard Blake and I'm here to explain to you how we can use the home inspection report to negotiate the price of a home. After the offer has been submitted on the subject property, generally there is a due diligence period of anywhere from five to ten business days. During this time period we are going to hire a professional inspector to go in and take a look at the property and let us know if he finds anything that may effect the value of the home. Unless the home is being sold in an as is condition, we can go back and renegotiate the contract based on anything that the inspector finds in the home that we are not happy with. Or that we find you know not acceptable. For example, if the home inspector finds that the roof has leaked in the last several months, generally what they'll do is they've got a water reader, or liquid reader that they stick into the ceiling if they see any type of water damage what so ever and as long as it's rain like in the last few days they will still be able to pull out that moisture reading. That in turns tells us obviously that there is a leak roof, or I'm sorry a roof leak so what we'll need to do then is actually get a roofer out there who can recommend to us whether or not that roof needs to be replaced, repaired whatever the case may be. If it's a simple problem that you know it can be repaired without having to replace the entire roof, then it may only cost you know five hundred dollars or a thousand dollars, but at the same time we want, may want to recommend that the roof be replaced and the value of that roof may be eight or ten thousand dollars. So then at that point in time we can go back and renegotiate the contract and say if it's a hundred and say it's a two hundred and fifty thousand dollar property, we can say you know we want to renegotiate the price down to two forty and you don't worry about the roof we'll replace the roof down the road. So that's just one example of how you can renegotiate the price point of the purchase of the property during the home inspection process. Ok. I'm Richard Blake and I hope that's helped you a little bit about how to use the home inspection to renegotiate the contract. You guys have a great evening."