INSPECTION NEGOTIATION
From: Rhonda Duffy and The Contract Negotiation Team
Direct: 678-366-3780
Fax 678-922-7608
duffycontracts@gmail.com
This is the beginning of the negotiation of your inspection during the Due Diligence Period as noted in paragraph 11(A) of the Purchase and Sale Agreement. This is a difficult process because you are finding out about inconvenient things that are wrong with your home at an inconvenient time. However, this process is easy so don’t fret.
Please keep in mind that the buyer can ask you for any repair or concern to be fixed. You don’t have to do it. And, the Buyer has the right to terminate the contract at anytime up until the end of the option period.
Although we do not look at the inspection with you in detail, we would like to offer you some general advice:
The 4 options that you have are:
Give money in lieu of repairs.
-OR-
Reduce the sales price
-OR-
Make all or some of the repairs requested. You can use your ORHP warranty if you have agreed to buy one for the buyer.
-OR-
Offer a home warranty to the buyer in lieu of the repairs and then use it to repair some of the items. The cost of the warranty is $399.00 and we use Old Republic Home Protection. The trade’s call fee is $55.00 per occurrence.
-OR-
Just offer a home warranty to the buyer. The cost of the warranty is $399.00 and we use Old Republic Home Protection. The trade’s call fee is $55.00 per occurrence. We will order it for you and it will be taken from your proceeds at closing.
To Give Money in Lieu of Repairs:
It is not necessary to get contractor bids yet, just take a stab at an acceptable price with your buyer.
Write back on the bottom of the inspection amendment:
"Seller to give $_____ in lieu of repairs towards Buyer's closing costs." Initial, time and date this addition.
To Reduce the Sales Price:
"Seller to reduce the purchase price to $_____ in lieu of all repairs."
Initial, time and date this addition.
Both of the above suggestions help you reduce the liability that the buyer will re-inspect the work and not like the repairs.
-OR-
You Can Make Repairs with or without a warranty plan
If you do decide to make some of the repairs, cross out the repairs that you do not want to make. Then initial, time and date your change. Sign the amendment and fax back to the buyer’s agent and us.
Additional Strategy
Cover Letter Explanation
The goal of both you and the Buyer is to get your home sold so remember that the Buyer may need you to explain some of your reasoning for repairing/not repairing the defective items you are negotiating. Send a cover letter explaining your response to ease the Buyer and put everyone on the same page.
The Whole Inspection Report
Getting the whole report from the inspector has its pros and cons. When you get a report from the inspector and you gain new knowledge about your home. If you don’t sell the home to this buyer, you then have to either disclose this knowledge on a revised seller’s disclosure to future buyers or you have to investigate it further to determine that the inspector was incorrect.
If you feel that you need help beyond this letter during the inspection, we charge $250 payable at the time that we start helping you and can be paid by Visa, MasterCard or Discover. Call our office for help however we would advise you to try the first round on your own as you may find that you can do it and save the money payable to us!
Thank you for your business and your referrals!