Once your home is under contract, the ball shifts into the court of the buyer. Legally, buyers are allowed to walk away from a deal for almost any reason. As a seller, you need to play your cards right to keep a buyer in the deal, especially when negotiating an Inspection Objection. Saying no to requests from a buyer can put you at risk of them leaving, but you need to be cautious of your bottom line. A good Realtor will manage the negotiations and advise you on where to give and where to hold strong.
Here are 3 best practices for negotiating on an Inspection Objection:
Sometimes receiving an Inspection Objection can be stress-inducing because some buyers use the ask for more and agree for less strategy, which can make a list of updates feel long. Keep in mind that a buyer sending in an Objection means they didn’t find anything that made them run for the hills. Let your Realtor help you decide what is a necessary repair and what you can decline.
Not making a big fuss about the Inspection Objection will make for a better selling experience and prevent you from making irrational decisions. Remember that buyers are watching out for their own bottom line and may ask for cosmetic repairs and not critical items.
Consider a Backup Buyer
In the current Denver area market, it’s not uncommon to receive multiple offers on your house in a short period of time. If this is the case, your Realtor may talk to you about keeping buyers as “backup buyers.” This can be a good strategy in the event that you and your buyers can’t come to an agreement on the Inspection Objection. However, if you choose this strategy, remember that your backup buyers aren’t contractually obligated to your house and may search for another one.
If you have a strong backup buyer lined up, it can give you a little more freedom to say no to items on the Inspection Objection. Just remember that you are required to disclose inspection findings to the next buyer, so if a major issue comes up, they may make the same request. A backup buyer isn’t a perfect solution, but it can give you stronger negotiating power.
In many situations, you can find a simple, creative solution to offer a buyer instead of simply fixing the problem. For example, say you have an air conditioner that is fully functioning but about 15 years old and the buyer has asked for a replacement. Negotiate with the buyer to provide them a home warranty to cover a new air conditioner in the event it breaks instead of simply replacing it outright. This can be a win for the buyers as a warranty would cover other appliances in the house.
Also, if a buyer asks for work to be done by licensed contractors, see if they would accept work being done by a handyman within reason. Talk to you Realtor about other creative ways to find solutions to requests from buyers.
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.