3. Buyers who ask for credits just to get the price down may be taking a chance.
Many times, the buyer may concede to the seller on purchase price after a long road of negotiation. The buyer might do this knowing that they can come back to the seller during the property inspection contingency and ask for an additional concession. The buyer may even feel empowered now that they’re in contract, had their loan approved, completed a series of inspections and are just weeks away from closing. The seller isn’t going to go back to the drawing board over a few more dollars, right?
Maybe. If it’s a strong buyer’s market, there’s a good chance you can pull it off. If it’s more of a neutral or a seller’s market, the seller may feel they actually have you by the strings. They’re assuming that you’re the one who, having invested all this time and money on inspections and an appraisal, isn’t going to walk away over a few dollars.
Bottom line: Using property inspection just to get the price down comes with risks. And then there’s that karma thing: Doing this to a seller may come back to bite you when you’re the one trying to sell.
4. Sellers should consider having a property inspection before listing.
The goal is to avoid any further negotiations once you’re in contract, because they’re not going to be in your favor.
If you know the roof is near the end of its life or the furnace breaks from time to time, let it be known up front via your disclosure statements or even verbally communicated through your real estate agent.
Depending on local custom and the market, you might even go as far as having your own property inspection done before listing the home. This way, you can iron out or repair any outstanding items or, at the minimum, make the inspection report available to buyers. When the buyers are making their offer, they can come up with a final price knowing what they’re getting. For more on this topic, read “Get a Property Inspection Before You List.”
If you have an inspection report or are otherwise assured your property is in great shape, you could even ask for an “as-is” clause in the contract. Though it’s not necessarily enforceable, it will send a strong message to the buyers that you aren’t open to more negotiation; that the property has been inspected; and that you’ve done all you can to make its condition known to the buyer.