If you’re selling your home and someone has submitted an offer, you may be worried about the buyer asking for costly repairs to be made. If you choose to make these repairs, you may end up cutting into any profit you may be making from the sale. Dean Graziosi explains that the majority of repair requests can be negotiated. However, it is important that you weigh your decision carefully and take into consideration all of the terms included in the contract.
Real estate contracts differ from area to area, but the majority of them all contain some room to negotiate. As a seller, it is important that you not sign any contract until you thoroughly understand the obligations contained in the contract and what is included regarding your responsibility for repairs. The ideal contract for any seller is one in which a buyer would agree to purchase the home “as is” or to request an “information only” inspection. Either of these contracts would be beneficial for you in that they relieve you of any obligation for making any repairs to the home.
While those may be the ideal types of contracts for sellers, the majority of all contract contain the clause that states the purchase is contingent on a home inspection. In some cases contracts may state the potential buyers cannot make any requests regarding cosmetic repairs and are only allowed to request repairs to any structural defects, violations of building codes, and any safety issues that may be present. If at any time you are not comfortable with any terms included in the contract or do not understand what the buyer is asking of you, you have the option of consulting a real estate attorney.
In many cases your ability to negotiate any repairs depends on the way in which your contract was written. In the majority of cases you are not required to agree to make any cosmetic repairs. Once an inspection is performed on the home, if any problems should be discovered, it may be better for you to make the necessary repairs than lose out on the sale. If a buyer walks away and you receive another offer, it is likely that the next inspection will discover the same problems; so you’re better off taking care of them the first time than go through the entire process all over again, states Dean Graziosi.
It is common for contracts to include the stipulation that the home inspector will provide a free copy of the report to the seller as well as the buyer. When you receive this report and it lists any defects in your home, you are required to disclose those defects to the next potential buyer. That is if you and the original buyer cannot come to terms on repairs.