A property inspector evaluating a house for potential credits that buyers may request based on property inspections.
1. Buyers may request credits based on property inspections
A property inspector evaluates a house for potential credits that buyers may request based on property inspections. A property inspection is a critical aspect of a real estate transaction. Home buyers may have inspections for various aspects of the property, such as the sewer line, septic system, pool, or roof. Inspections can reveal previously unknown issues, leading buyers to renegotiate the price by requesting credits or a reduction in the purchase price.
2. Sellers should consider pre-listing property inspections
To avoid unfavorable negotiations after entering a contract, sellers should consider having a property inspection before listing their home. By addressing any issues upfront and providing an inspection report to potential buyers, sellers can facilitate a smoother transaction. Including an “as-is” clause in the contract can further emphasize the seller’s unwillingness to negotiate further.
3. Sellers may avoid granting credits by completing repairs before closing
Sellers can protect themselves from credits requested solely to offset closing costs by agreeing to complete necessary repairs before closing or requiring payments to be made directly to a contractor. This strategy also shields the seller if the initial repair cost estimates were overstated.
A small wooden house with a red arrow pointing down, symbolizing how credits can be used to lower the purchase price in real estate transactions.
4. Buyers risk losing the deal by asking for credits to lower the price
Buyers who concede on the purchase price with the intention of requesting additional concessions after property inspections may risk losing the deal. While this strategy may work in a strong buyer’s market, a seller may call the buyer’s bluff in a neutral or seller’s market, knowing the buyer has already invested time and money in inspections and appraisals.
5. Sellers should anticipate credit requests and prepare accordingly
Sellers should assume that buyers will request minor repair work and provide a cushion for themselves during negotiations. By preparing for such requests, sellers can protect themselves from unexpected credit demands and feel more confident about the deal.
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