Posted by: dagmarsands | January 7, 2022

What Buyers & Sellers Should Know!

Buyers and Sellers, Investors

Home Issues That Should Make You Rethink Your Negotiations

When you’re getting ready to buy your first home, you may get blindsided by excitement. But, rest assured that now is not the time to jump the gun. There are many practical considerations that you have to put front and center, even when your heart finds the home of your dreams and it isn’t quite up to par.

Real Estate International takes buying a fixer-upper very seriously. It’s a topic worth revisiting since major problems, like a leaky roof, busted HVAC, and cracks in the foundation might mean thousands of dollars and months of inconvenience. In addition to those just mentioned, issues that should send you running the other direction or, at the very least, back to the negotiations table include:

  • Faulty electrical system
  • Widespread wood rot
  • Unclear title
  • Pest infestation
  • Signs of previous water damage (such as mold and mildew)
  • Asbestos
  • Damaged or degrading septic system

Keep in mind, however, that if you choose to buy a property with an “as-is” clause, you may inherit these issues, and your seller won’t come down on price. However, in most traditional home buying scenarios, any of these problems should trigger a conversation with your Realtor about what you’re willing to incur and what you’re not. Remember: your real estate agent is the most invaluable resource you have in this instance.

How to Ask for a Lower Price

By the time you get to the home inspection, you’ve likely already made an offer on the home. In today’s market, many other people likely have as well. This doesn’t mean that you can’t come back with contingencies. If your inspection uncovers a problem, immediately bring this up to your Realtor. They can coordinate with the seller’s agent, and you can likely get a quote on the repair. Once a quote is complete, you might then present this to the seller and ask for a lower price, for them to have the repairs done on their own, or for an allowance, which will then be paid back to you at closing. If you’re not yet familiar with the closing process, the Which Mortgage blog explains that this is when all money is put on the table, and you are given the keys to your new home.

In some cases, the seller may come back with a counteroffer. In others, they may accept that other potential buyers will experience the same issues, and they will do what they can to expedite the sale instead of canceling it altogether. Restarting the home selling process is time-consuming, and your sellers probably want to move as much as you do.

I Don’t Like the Color

Now, on to issues that the buyer likely won’t take care of. One of these is a paint color that you don’t care for. While the average cost to paint a room runs around $1,892, this is one expense that you’ll likely have to incur yourself. Your buyer also won’t be willing to change out light fixtures, switch plate covers, or any other cosmetic eyesore as these don’t affect the fundamental value of the home and, in all likelihood, the property has already been priced to account for whether or not it’s been updated to modern standards.

At the end of the day, the seller does not have to agree to any repairs as long as they have been upfront and honest to the best of their knowledge about the condition of the home. However, most people realize that, despite a hot market, there are certain issues in which most people won’t budge. It is often better to negotiate with a guaranteed offer than it is to go back to the proverbial drawing board to start the process all over again. If you still have questions about the types of updates and renovations that should be complete before you buy, talk to your Realtor.

No matter where in the world you’re looking to move, Real Estate International can help you every step of the way. For more information call 770-476-1335.

Article written by John Dunbar

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