Going through the first round of negotiations when buying or selling a home can put a strain on the relationship between the buyer and seller, especially if you are already under agreement for a certain price and the home inspection reveals a number of concerns. In order to help make your ongoing real estate transaction a success, here are 5 tips for buyers and sellers negotiating repair costs in Boston:
Keep Your Real Estate Agent Involved
Hopefully, your real estate agent has been a key part of any negotiations that have happened up to this point, and that should certainly continue.
Take any home inspection reports you receive and go over them in their entirety with your agent to help identify any trouble spots or concerns you may have. Your agent’s wealth of experience will help identify any critical points from the inspection report, and help shape the conversation with the other party going forward.
Don’t forget that being open and honest with your agent will make sure your goals are being met as a team when negotiating repair costs in Boston.
Pick Your Battles
After the inspection report is finalized, it can be easy for the buyers to feel they have acquired a lot of leverage and begin requesting large modifications to the negotiated terms of the sale.
Be very careful.
It’s imperative that both parties keep their cool and take a logical and measured response to the report. Buyers have every right to request repairs be made to the property, but also need to understand that they aren’t purchasing new, flawless construction, and the seller has the right to refuse those repairs.
If you’re the buyer, focus on repairs you feel are most important and give a bit of slack on the rest to provide some give and take. This less aggressive response will keep the negotiation moving forward.
Get Estimates from General Contractors
A common situation a buyer finds themselves in is asking an inspector for estimates on repairs during the inspection.
Instead of expecting the inspector to be able to provide a thorough and accurate estimate, have a general contractor go through your list of requested repairs. The general contractor can give you an estimate for the fair cash value of the repairs, and this could be a great bargaining tool when negotiating repair costs in Boston.
For the seller, the assessment from the general contractor could actually show the fair cash value of the repairs to be much less than what was originally assumed.
Consider Other Compensation
One tool that often goes overlooked during negotiating repairs is offering something in place of having the repairs done right this second.
Suggesting a cash credit, gift card to a hardware store, or home warranty could alleviate the situation immediately while providing some peace of mind to both buyer and seller. In a lot of cases, buyers prefer they handle any repairs themselves or through a contractor, and leaving the repairs up to a seller who simply wants to complete them and get out of the home is a less than desirable scenario.
A home warranty usually covers the appliances and HVAC system of a home for a small monthly cost to the seller and could accomplish the same objective.
As you’re starting negotiations, it is in everyone’s best interest to make sure no one is taking anything personally.
Both the buyer and seller want to get the home purchase finalized, and no one should be working against anyone else to make this happen. Realize that you are both on the same team, and work together to make the deal a success.
If you’re having trouble keeping emotions out of the equation, discuss things with your agent and rely on them to do the talking.
Professional Help Negotiating Repair Costs in Boston
Figuring out how to proceed once the question of repairs rears its head doesn’t have to be the end of you pursuing your real estate goals with this one property. If you’re facing trouble negotiating repair costs in Boston, contact us today at (617) 657-9811.
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