Once your home goes under contract, the ball primarily lies in the buyer’s court. They are legally allowed to walk away from the deal for almost any reason. This means you have to play your cards right, especially when it comes to resolving the Inspection Objection. You don’t want a buyer to turn away when you refuse to make repairs, but you also don’t want to lower your bottom line too much. So what do you do? The good news is your Realtor will manage the negotiations and advise you on what needs to be taken care of.
Here are 3 best practices for negotiating on an Inspection Objection:
Receiving an Inspection Objection means your buyers aren’t running for the hills. Nothing they found has scared them away entirely, they are just trying to get the most bang for their buck. Even if there is a relatively long list on your Inspection Objection, stay calm and let your Realtor help you decide what you will need to fix and what you can decline.
Staying calm and not making a big fuss about an Inspection Objection will make for a better real estate selling experience for you and help you make rational decisions about what you are willing to fix or update. Remember, while the purpose of the inspection is to find problems not visible at the showing, sometimes buyers will ask for cosmetic fixes and other not critical items.
Keep a Backup Buyer
If you receive multiple offers on your home in a short period of time, your Realtor may talk to you about asking other buyers to stay interested as “backup buyers.” Of course, they aren’t contractually obligated to stick around if they find another house, but it is nice to know there is someone else in your back pocket in case a deal falls apart.
If you have a backup buyer you can be a little less accepting of items on the Inspection Objection knowing you won’t have to wait around for another offer if these buyers leave. However, you are required to disclose inspection findings to the next buyer. While not a perfect solution, having a backup buyer can give you stronger negotiating power.
Find Another Solution
Sometimes there’s another simple solution you can offer a buyer. For instance, if your home has a 20-year-old furnace in full functioning condition but the buyer has asked for a replacement try to think outside of the box. Instead of replacing the furnace which can be quite costly, try offering a home warranty which will cover the water heater and all the appliances for a short period of time. This type of offer may help the calm the buyer’s nerves while maintaining your bottom line.
There are often other solutions. Many buyers ask for repairs to be done by licensed contractors, but for small things such as switch plates and other finishing touches, have your Realtor ask to use a skilled handyman instead of shelling out the big bucks for a contractor. Your Realtor will know creative ways to respond to inspection objections.
An Inspection Objection is a standard part of selling a home, especially in a buyer heavy market such as the Denver area. If you are selling your home and are looking for strong negotiating power, contact us today. We’re in the Denver/Boulder area and are home selling experts.