Step 15 - Negotiating After Home Inspection

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When Seller and Buyers Don't Agree During Negotiating After Home Inspection

Negotiating after a home inspection is a crucial phase in the home-selling process. It is common for buyers to conduct a thorough inspection to identify any potential issues with the property. If disagreements arise between the seller and buyers following the inspection, here's what typically happens:

1. Identification of Inspection Discrepancies
After the home inspection, the buyer's inspector will provide a detailed report outlining any problems found in the property. These issues could range from minor repairs to significant structural concerns. The buyer and their agent will review the report to identify discrepancies that need to be addressed.

2. Request for Repairs or Credits
Based on the inspection report, the buyer may submit a formal request for repairs or credits to the seller. The request will outline the specific items that the buyer wants the seller to address before proceeding with the purchase. Alternatively, the buyer may ask for a reduction in the purchase price to cover the cost of necessary repairs.

3. Seller's Response (Within 24 hours from written request from Buyers Agent)
Upon receiving the buyer's request, the seller has several options for responding:

Agree to the Request: If the seller agrees to the buyer's requests, they can proceed with arranging the repairs or offering the requested credits. Both parties would need to come to a mutual agreement on the terms.
Counteroffer: The seller may choose to make a counteroffer that addresses some, but not all, of the buyer's requests. This can lead to further negotiation until both parties reach a compromise.
Decline the Request: In some cases, the seller may refuse to make any repairs or offer credits. This decision could potentially lead to the termination of the sale if the buyer is not willing to proceed without the requested changes.
4. Renegotiation and Resolution (in 24 hours)
Negotiations between the seller and buyers may continue until they reach an agreement or decide to walk away from the deal altogether. It is essential for both parties to communicate openly and be willing to find common ground to move forward.

5. Legal Contingencies
This can allow the buyer to back out of the deal without losing their earnest money (usually $1000) if they cannot reach an agreement with the seller after the inspection. These contingencies provide an extra layer of protection for the buyer.

6. Potential Next Steps
Depending on the outcome of the negotiations:

If an agreement is reached, the sale can proceed as planned, and Purchase and Sale is signed with 2nd Escrow money received) the transaction moves towards closing.
If an agreement cannot be reached, the buyer may decide to walk away from the deal and look for another property that better meets their requirements.
If the seller is unable or unwilling to address the buyer's concerns, they may choose to relist the property and find a new buyer.
In conclusion, negotiating after a home inspection is a critical phase in the home-selling process. It requires open communication and a willingness to find common ground between the seller and buyers. By navigating this phase successfully, both parties can proceed with confidence towards closing the sale or exploring other options if needed.